Please distribute call for papers below:

*Call for Papers **for **a Special Issue in the International **Journal of
Development Issues*

the double-edged sword of inward foreign direct investment

for growth and sustainability of developing economies

Submission Deadline: 31 December, 2022

Guest Editors:

Byung Il Park, Hankuk University of Foreign Studies, South Korea

Lucia Piscitello, Politecnico di Milano School of Management, Italy

Nigel Driffield, Warwick University, Warwick Business School, UK

*Purpose and Research Questions:*

According to UNCTAD estimates (2007, 2011, 2020), after accounting for
fluctuations based on economic conditions, the stock value of (outward)
foreign direct investment (FDI) transactions grew from U$1.8 trillion a
year in 1990 to U$6.2 trillion in 2000. The figure of U$12.5 trillion for
2006 was twice that of the year 2000 and worldwide FDI activities continued
to expand, increasing to U$20.4 trillion in 2010 and to U$34.6 trillion in

While most of the main sources for such an FDI come from multinational
corporations (MNCs) that have headquarters in developed economies (Berrill,
Kearney, & O’Hagan-Luff, 2019), the primary economies, which attract FDI,
are, namely China, India, and Southeast Asian countries. In addition, the
African continent is also often referred to as the last blue ocean for MNCs
to stably earn their profits abroad.

Despite the plausible theoretical ground for anticipating positive
contributions (e.g. economic growth, innovations, institutional development
and the progress of artificial intelligence, etc.) of FDI to these emerging
and developing countries, the role of FDI in the issue remains highly
controversial (Reiter & Steensma, 2010). While some studies confirm a
positive impact of FDI (e.g., Adams, 2009; Salim & Bloch, 2009; Vu, 2008;
Woo, 2009), others fail to find such relationship (e.g. Barry, Gorg, &
Kosova, 2010; Strobl, 2005; Djankov & Hoekman, 2000; Jin & Zeng, 2017). In
contrast, researchers in the third school argue conditions to yield the
positive outcomes through FDI. As an example, Chitambara (2021) finds that
FDI inflows exert a positive impact on economic growth only in combination
with institutional development and trade openness. Hermes and Lensink
(2003) and Durham (2004) document that FDI promotes economic development in
the case where the host countries have achieved a certain level of
financial systems and equipped appropriate financial market regulations.
According to Reiter and Steensma (2010), the positive impact of FDI depends
on the level of corruption in local markets.

Accordingly, those researchers argue different views on FDI contributions.
For example, De Mello (1997) considers FDI as a bundle of foreign capital,
technology and know-how. Consequently, host markets (i.e., developing and
emerging countries) attracting FDI are anticipated to significantly reduce
the technological gap against advanced economies leading to positive
innovations. In the same vein, Asheghian (2004) emphasizes that output
growth in the developing and emerging countries is dependent upon whether
they can enhance efficiency and productivity throughout domestic
industries, and argues that FDI inflows commonly result in increasing
returns in domestic production and enlarges in the value-added content of
FDI-related production. In contrast, some other researchers contend that
MNCs extract profits from local markets and give nothing of value in
exchange. In addition, they highlight that the relations between core and
peripheral economies hamper the latter’s development, perpetuate their
subordinate status, transfer economic surplus to the core, and increasingly
force them to rely on core countries for investment, employment and
technology (Perraton, 2007).

Due to this, we do not yet know enough about the two bright and dark sides
of the same coin (i.e., FDI) represented by the statement that FDI is a
double edged sword. In this regard, the aim of this special issue is to
bring together theoretical and empirical advancements examining the
contributions of MNCs and FDI to various areas in relatively underdeveloped
markets. We seek conceptual, theoretical and empirical (both quantitatively
and qualitatively approached) papers, as well as literature reviews and
meta-analyses, that may address, but are not limited to, the following list
of potential research questions:

   - Which theories of international business or multinational enterprise
   best explain the apparent implications of FDI for developing countries?

   - What are the key factors yielding positive outcomes through FDI in
   developing and emerging economies? Is there any heterogeneity across the
   level of economic and social developments in a host country and across
   industries? What role does distance play?

   - How does FDI function as a means for knowledge transfer or knowledge
   extortion between developed and developing economies?

   - What is the effect of FDI on institutional development in local

   - What is the impact of FDI on poverty and inequality in local

   - How does FDI influence differently when it is attracted in developed
   and developing economies for innovation (e.g. De Beule & Van Beveren,

   - Who obtains more benefits through FDI between advanced and developing

·       Are there any patterns of social development through FDI in
developing countries? What implications can be drawn from countries that
have successfully leapfrogged into better economies?

   - In the view of emerging and developing countries, what are the primary
   conditions that retard double negative economic outcomes from inward FDI?

   - What is the effect of profit remittance by MNCs on the local market
   economy? What encourages MNCs to re-invest profits in local markets?

   - What are the effects of reorganizing of MNCs’ global value chains
   (GVCs) by “reshoring” production, diversifying their supplier bases and
   adopting industry 4.0 revolution on emerging and developing economies, as
   well as developed economies (e.g. De Marchi, Di Maria, Golini, & Perri,
   2020; Van Assche & Lundan, 2020)?

*Submission Instructions:*

The deadline for submissions is 31 December, 2022. For further information
of *International Journal of Development Issues*, including author
guidelines, please visit the *International Journal of Development
Issues *website

All submissions will be subject to the regular double-blind peer review
process at the *International Journal of Development Issues.*

More Information:

To obtain additional information, please contact the guest editor:

Byung Il Park, Hankuk University of Foreign Studies, South Korea (
[log in to unmask])

Lucia Piscitello, Politecnico di Milano School of Management, Italy (
[log in to unmask])

Nigel Driffield, Warwick University, Warwick Business School, UK (
[log in to unmask])


Adams, S. (2009). Foreign direct investment, domestic investment and
economic growth in Sub-Saharan Africa. *Journal of Policy Modelling*, 31,

Asheghian, P. (2004). Determinants of economic growth in the United States:
The role of foreign direct investment. *The International Trade Journal*,
18(1), 63-83.

Barry, F., Gorg, H., & Strobl, E. (2005). Foreign direct investment and
wages in domestic firms in Ireland: Productivity spillovers versus
labour-market crowding out. *International Journal of Business and
Economics, 12*(1), 67-84.

Berrill, J., Kearney, C., & O’Hagan-Luff, M. (2019). Measuring the
diversification benefits of investing in highly internationalised
firms. *International
Business Review, 28*(4), 672–684.

Chitambara, P. (2021). FDI and domestic investment in Africa: Evidence on
the role of local conditions. *The Journal of Developing Area*, 55(1),

De Beule, F., & Van Beveren, I. (2019). Sources of open innovation in
foreign subsidiaries: An enriched typology. *International Business Review,
28*(1), 135-147.

De Marchi, V., Di Maria, E., Golini, R., & Perri, A. (2020). Nurturing
international business research through global value chains literature: A
review and discussion of future research opportunities. *International
Business Review, 29*(5), 101708.

De Mello, L. R. (1997). Foreign direct investment in developing countries
and growth: A selective survey. *Journal of Development Studies*, 34(1),

Djankov, S., & Hoekman, B. (2000). Foreign investment and productivity
growth in Czech Enterprises. *World Bank Economic Review, 14*(1), 49-64.

Durham, B. (2004). Absorptive capacity and the effects of foreign direct
investment and equity foreign portfolio investment on economic growth.
Economic Review, 48*(2), 285-306.

Hermes, N., & Lensink, R. (2003). Foreign direct investment, financial
development and economic growth. *Journal of Development Studies, 40*(1),

Jin, Y., & Zeng, Z. (2017). Expropriation and foreign direct investment in
a positive economic theory of foreign aid. *Economic Theory*, 64, 139-160.

Kosova, R. (2010). Do foreign firms crowd out domestic firms? Evidence from
the Czech Republic. The *Review of Economics and Statistics*, 92(4),

Perraton, J. (2007). Evaluating Marxian contributions to development
economics. *Journal of Economic Methodology, 14*(1), 27-46.

Reiter, S. L., & Steensma, K. (2010). Human development and foreign direct
investment in developing countries: The influence of FDI policy and
corruption. *World Development*, 38(12), 1678-1691.

Salim, R. A., & Bloch, H. (2009). Does foreign direct investment lead to
productivity spillovers? Firm level evidence from Indonesia. *World
Development, 37*(12), 1861-1876.

UNCTAD (2001). *World investment report: Promoting linkages*. Geneva:
United Nations.

UNCTAD (2011). *World investment report: Non-equity modes of international
production and development*. Geneva: United Nations.

UNCTAD (2020). UNCTADstat. Accessed on
December 9, 2020.

Van Assche, A., & Lundan, S. (2020). From the editor: COVID-19 and
international business policy. *Journal of International Business Policy, 3*,

Vu, T. B. (2008). Foreign direct investment and endogenous growth in
Vietnam. *Applied Economics, 40*, 1165-1173.

Woo, J. (2009). Productivity growth and technological diffusion through
foreign direct investment. *Economic Inquiry, 47*(2), 226-248.

Dr. Byung Il Park

Professor of International Business
Hankuk University of Foreign Studies
College of Business
Tel: +82-2-2173-3193
Mobile: +82-10-4157-3532
E-Mail: [log in to unmask]

Personal Homepage:

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