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Article: Product characteristics and the growth of FDI.(foreign direct investment)
- Article from:
- Transnational Corporations
- Article date:
- April 1, 2003
- Author:
CopyrightCOPYRIGHT 2003 The United Nations accepts no responsibility for the accuracy or suitability of the presentation of these materials in this publication. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Foreign direct investment and the activities of foreign affiliates have grown dramatically in recent decades, both in absolute terms and as a share of world gross domestic product. Most explanations of this phenomenon focus on the impact of technology and the macroeconomic environment on the choices facing individual firms over whether or not to engage in foreign direct investment. This research note focuses instead on the characteristics of demand for the products produced in industries known to be conducive to foreign direct investment. These characteristics are shown to help explain the recent growth in the foreign direct investment-to-gross domestic product ratio.
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