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 2019.


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:









·       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?






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 at:


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, 939-949.

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), 219-234.

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), 1-34.

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. European 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), 142-163.

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), 861-881.

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, 273–279.

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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