*CALL FOR PAPERS*
*Special issue in Journal of International Business Policy on*
*FOREIGN INVESTMENT FOR DEVELOPMENT: TIME FOR A NEW AGENDA?*
*Guest editors*
Kristin Brandl (University of Victoria and Copenhagen Business School)
Xiaolan Fu (University of Oxford)
Robert Grosse (Thunderbird School of Management)
Roberta Rabellotti (Università di Pavia and University of Johannesburg)
*Keywords:* Foreign direct investment, Multinationals, Economic
Development, Sustainable Development, Developing countries, Industrial
Policy, Uneven Geography of FDI; International organizations
*Background*
Twenty years ago, Lall and Narula (2004) proposed that it was time to
reconsider the role of foreign direct investment (FDI) in economic
development amidst a liberalizing global economy. Today, we believe a
similar reflection is necessary given the substantial changes that the
global economic system is recently undergoing that impact FDI, including
the strengthening sustainability imperative, the digital revolution, and
the rising geopolitical tensions. This special issue aims to inspire new
thinking on foreign investment for development, focusing on how this
relationship has evolved and what role policy plays in it.
The discussion comes at an opportune time as numerous countries and
international organizations have turned their attention to foreign
investment for development. While the topic has been a longstanding focus
of the United Nations Trade and Development (UNCTAD), i.e., as a central
theme of its flagship publication, the *World Investment Report*, it has
also become a focal point at the World Trade Organization (WTO). The WTO
has entered negotiations on Investment Facilitation for Development, aiming
to develop a global agreement to improve the investment and business
climate in developing countries. Moreover, numerous international
governmental organizations (IGOs) and the Academy of International Business
(AIB) have recently joined forces to develop the World Investment for
Development Alliance (WIDA) to create a collaboration mechanism for
sustainable international investment. This special issue aims to contribute
to this conversation. It aims to provide both theoretical and empirical
insights that can support international organizations and governments in
developing a robust FDI policy agenda on investments for development.
*Foreign Direct Investment for Development*
One of the most hotly contested issues in international business research
concerns the varied roles of multinational enterprises in the development
process of countries (Lall & Narula, 2004; Ghauri, Fu, and Vaatanen, 2017).
For many years, FDI has been painted as *an integral part of an open and
effective international economic system and a major* catalyst for
development (De Mello, 1997; Borensztein et al., 1998). Scholarship has
focused on the benefits of inward FDI (IFDI), especially in developing
countries (Fu, Buckley and Fu, 2020; Sawitri & Brennan, 2023; van der
Straaten et al., 2023). It found that IFDI can stimulate economic
development (Moran et al. 2007) and facilitate country catch-up (Larmin &
Livanis, 2013). It does so by boosting the productivity of local companies
in upstream and downstream sectors (Alfaro & Chauvin, 2022), fostering
technology and knowledge transfer (Meyer & Sinani, 2009), and improving
managerial and employee skills (Alfaro & Chauvin, 2022; Fu, Essegbey, &
Promkon, 2019). It can also influence institutional and regulatory
environments, especially in developing countries, by strengthening their
intellectual property (IP) protection standards (Brandl et al., 2018).
Beyond these economic benefits, IFDI can improve environmental and social
conditions in host countries by transferring “cleaner” technologies and
encouraging more socially responsible corporate actions (Fu et al., 2021;
Amendolagine et al., 2021; 2023; Wiessner et al., 2024)*.* For all these
reasons, IFDI is considered a critical tool for achieving the United
Nations Sustainable Development Goals (UN SDG) at both the host-country and
global levels (Montiel et al., 2021; van Tulder et al., 2021).
Moreover, outward FDI (OFDI) has also been linked to development
(Castellani et al. 2008; Dunning & Lundan 2008; Bathelt & Buchholz 2019),
especially its potential to generate growth in the home region by
facilitating skill upgrading and generating jobs that support foreign-based
activities, creating new markets and stimulating production growth, as well
as facilitating access to both foreign business networks and new knowledge.
This finding not only applies to advanced economies but also to developing
countries (Hennart, 2012; Pananond, 2015; Fu, Buckley & Fu, 2020). For
example, emerging-market multinational enterprises (EMNEs) can learn from
their internationalization activity and gain experience by accessing
geographic and culturally distant markets (Luo & Tung, 2007; Amendolagine
et al., 2018).
However, the benefits of FDI are not automatically or evenly distributed
across countries, regions, sectors, and workers (Fu, 2004; Alfaro & Chen,
2016), with many stakeholders facing negative implications that can hamper
development. For instance, researchers have found that FDI can distort
local labor markets (Gagliardi et al., 2021) and temporarily reduce
employment opportunities (Moore et al., 2023). It was found to hamper
indigenous entrepreneurship and innovation (Zahra & Hashai, 2022; Fu,
Pietrobelli, & Soete, 2011), enhance rural poverty (Brandl et al., 2021),
exploit local deficiencies such as constrained free speech (Fiaschi et al.,
2017), transfer irresponsible business practices abroad (Surroca et al.,
2013), and create chokepoints that can generate national security concerns
(Luo & Van Assche, 2024). These negative implications of FDI have spurred
debates in both academic and policy circles on the overall impacts of FDI
for development and how to identify and spur Sustainable FDI (Sauvant,
2021), quality FDI (OECD, 2019) and socially responsible investment (SRI)
(Sparkes & Cowton, 2004) that aim to enhance development.
In this context, developing the right FDI policies at both the national and
international levels is crucial for maximizing the developmental benefits
of FDI (Buckley, 2018). Nations and international organizations need to
develop these in a global economy that is trying to reinvent itself. The
launch of the UN SDGs is a manifestation of the growing sustainability
imperative that policymakers are adopting in their development of FDI
policies. Growing geopolitical tensions imply that governments are also
including security concerns in their FDI policies. Development in digital
technologies and artificial intelligence, as well as the climate change
challenge, suggest that countries need to reflect on the implications that
these have on FDI.
This JIBP special issue seeks manuscripts on the broad subject of “foreign
investment for development.” We are particularly interested in articles
that study how this relationship has evolved, considering new global
realities related to grand challenges, such as climate change, the
4th industrial revolution, and rising geopolitical tensions. We welcome
submissions that are grounded in the fields of international business,
development economics, economic geography, international economics, and
development studies.
*Possible Topical Areas of Interest*
For this special issue, we invite scholars to contribute theoretical and
empirical research that expands or improves current knowledge on the
interaction between foreign investment and economic development.
Submissions may include but are not restricted to the following topics:
*Relation between FDI and economic/sustainable development*
1. *Types of FDI and their impact on economic development:*
Is inward and/or outward FDI a boon or bane for economic/sustainable
development?
What is sustainable/quality FDI, and how does it relate to
economic/sustainable development?
Which type of FDI is best for inclusive and sustainable development?
What is the relation between impact investment and economic development?
What role does the location of origin of the MNE (e.g., multinationals from
emerging markets) and size and maturity of the firm (e.g., small
multinationals or born globals) play in economic development?
Do MNEs’ CSR investments have economic development outcomes?
2. *Impact of FDI on different levels and paths of economic/sustainable
development:*
How effective is FDI for transferring knowledge and technology?
What explains the uneven distribution of FDI around the globe?
Does South-South FDI impact development differently from
North-South/North-North FDI?
What role does FDI play in global and regional value/supply chains?
What role does FDI play in achieving the UN Sustainable Development Goals?
Does FDI enhance or constrain the green transition in developing countries?
What are ethical issues related to FDI and economic development?
What are FDI’s potential drawbacks, such as lack of positive linkages with
local communities and potentially harmful social and environmental impact
of FDI, especially in the extractive and heavy industries?
3. *External factors impacting FDI and economic development:*
How does geopolitics influence the relation between FDI and
economic/sustainable development?
Have the digital revolution and AI affected the relationship between FDI
and economic/sustainable development?
What role does timing play in the relationship between FDI and
economic/sustainable development?
*Relation between policies and FDI/international business*
4. *Policy impacts FDI/international business:*
Do FDI policies generate the envisioned effects of economic development?
What are their unintended consequences?
How do policies for economic, sustainability, or national security reasons
affect multinational enterprises and their global value chains?
How effective are FDI policies that aim to reduce inequality?
What is the rationale for supranational investment facilitation policies,
such as the WTO’s “Investment Facilitation for Development”?
What are the predicted gains from a WTO agreement on Investment
Facilitation?
What role can supranational soft policies play in investment facilitation?
How does the European Union Cohesion Policy affect economic, social and
territorial inequality?
5. *FDI/international business impacts policy:*
How do public agendas around FDI policy emerge and evolve in light of
recent patterns of FDI? How do MNEs and other stakeholders influence/lobby
for FDI policies?
How do governments align/misalign with FDI policies?
While the title states “Investment,” the special issue would also consider
papers that look at the operation of multinational firms in host countries
regarding their development impact, even after the original investment has
taken place. The examination of how MNE activities in host countries
affect economic development – or other aspects of development such as
social or institutional development or pursuit of the UN’s Sustainable
Development Goals – would be welcome, again if the analysis includes
explicit consideration of actual or potential government policy.
Focusing on this topic can help our scholarly community build stronger
bridges with policy actors in national governments and international
organizations, which is one of the ultimate goals of the journal. JIBP is
also interested in papers that emphasize the company perspective on
government policies and on the role of international organizations. So,
overall, the goal is to focus on investment strategies and government
policies that contribute to development.
*Envisioned impact*
The discussion on foreign investment for development in this special issue
should provide useful and holistic insights for policymakers in the areas
of trade and investment promotion, as well as those involved in foreign
relations, on the consequences of FDI in developing countries. At the same
time, such discussion should also benefit managers who conduct FDI, both in
advanced and developing economies.
*Submission and Review Process*
Submitted manuscripts must adhere to the scope, standards, format, and
editorial policy of the *Journal of International Business Policy
*(JIBP). “*Author
Guidelines <http://www.palgrave.com/gp/journal/42214/authors/aims-scope>*”
and the JIBP Style Guide for Authors must be followed.
The Special Issue will proceed in two phases. In Phase 1, the four guest
editors will review all submitted proposals. An extended abstract should be
around *2000-3000 words*, including graphs, tables, figures, and
references. It should provide (i) the author(s)’ details, (ii) the purpose
of the study, (iii) the research question(s) being addressed, (iv) how the
article addresses the core concepts of the special issue; and (v) the
relevance of the study for scholars and policy professionals; and (vi) the
envisioned impact of the paper.
Extended abstracts should be emailed to the JIBP Managing Editor, Anne
Hoekman, at *[log in to unmask] <[log in to unmask]>* with
“Special Issue Foreign Investment” in the subject line.
Contributors with submissions likely to contribute to the SI will be
invited to develop a full paper. *These invitations provide no guarantee
for publication in the SI.* They serve as indications of interest in how
the full papers can contribute to the SI. In Phase 2, the submitted papers
will go through the regular JIBP process of submission, peer-review,
revision, acceptance, and JIBP publication. The timeline for submission is
as follows:
January 30, 2025 Deadline for extended abstract submission by email to
*[log in to unmask]
<[log in to unmask]>*
August 30, 2025 Deadline for submission of full papers via
JIBP’s *Manuscript
Central portal <https://mc.manuscriptcentral.com/jibp>*
September 2026 Expected publication of SI (accepted articles
published online)
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economic development. *Encyclopedia of International Economics and Global
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Alfaro, L. & Maggie C (2018). Transportation Cost and the Geography of
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International Trade and Transportation*, Edward Elgar Publishing.
Amendolagine, V., Giuliani, E., Martinelli, A., & Rabellotti, R. (2018).
Chinese and Indian MNEs’ shopping spree in advanced countries. How good is
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Amendolagine, V., Hansen, U. E., Lema, R., Rabellotti, R., & Ribaudo, D.
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