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    Global value chains as a mixed blessing: fostering productivity but not jobs

Global value chains as a mixed blessing: fostering productivity but not jobs

By Stefan Pahl (University of Groningen)

 

 

Global Value Chains (GVCs) are seen by many as a possible panacea to economic development. New findings suggest indeed that GVC participation is strongly associated with productivity gains. Yet, there is no evidence in favour of positive employment effects, which is particularly relevant in less developed countries. This evidence calls for a careful assessment […]

Does foreign investment promotion work? Where?

By Riccardo Crescenzi (LSE), Marco Di Cataldo (LSE, Ca’ Foscari University of Venice), and Mara Giua (LSE, Roma Tre University).

 

Global capital markets are increasingly competitive and the attraction of Foreign Direct Investment (FDI) has taken centre stage in public policies world-wide. Nowadays countries with no active Investment Promotion Agencies (IPAs) are only a small minority in the world (OECD, […]

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    The four fundamental misconceptions about FDI you should know about.

The four fundamental misconceptions about FDI you should know about.

     

By Riccardo Crescenzi (LSE), Arnaud Dyevre (LSE) and Roberto Ganau (LSE, University of Padova)

 

Politicians around the world have devoted significant efforts and resources to attract foreign direct investment (FDI). The assumption is that multinationals bring in new skills and ideas, create jobs and spur on local companies. But is all this effort really worth it? Is the impact […]

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    Are agglomeration economies still important in times of production dispersion?

Are agglomeration economies still important in times of production dispersion?

By Giulio Cainelli (University of Padova), Robert Ganau (University of Padova & LSE) and Anna Giunta (Roma Tre University).

 

Global Value Chains and the concomitant international dispersion of production activities have reshaped the comparative strength of agglomeration economies to deliver competitive advantages to firms and territories. In this article, Cainelli, Ganau and Giunta explore the role of agglomeration economies in […]

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    Mining for tech advances? The impact of mineral-resource FDI in the era of global value chains

Mining for tech advances? The impact of mineral-resource FDI in the era of global value chains

By Lorenzo Formenti (UNCTAD) and Bruno Casella (UNCTAD)

 

 

The spillovers of mining FDI – the diffusion and appropriation of foreign technology, know-how or skills that may not be available locally – are paramount for development in poor, resource-rich countries. In this piece, we identify three channels of FDI-led technological spillovers: 1. Generic exposure to multinational R&D activity; 2. Internationalization of […]

Are global value chains in decline?

By Bernhard Dachs (Austrian Institute of Technology) and Stefan Pahl (University of Groningen)

 

 

Global value chains (GVCs) have been a dominant trend in the world economy since the 1970s, but more recently their growth appears to be stagnating. In this article Bernhard Dachs and Stefan Pahl explore the roles of shifting global demand, backshoring, and regional integration in Asia in […]

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    Mining Global Value Chains: New Opportunities and Old Obstacles for Developing Countries

Mining Global Value Chains: New Opportunities and Old Obstacles for Developing Countries

By Carlo Pietrobelli (University Roma Tre and UNU-MERIT)

 

 

Mining activities in developing countries have traditionally been considered a form of economic enclave, with limited linkages to the local economy. This column challenges this view by arguing that mining activities are increasingly organized as global value chains (GVCs). Moreover, developments in science and technology are opening up new opportunities for innovative […]

May 10th, 2019|Location, Policy|0 Comments|

What policies work for FDI?

     

By Riccardo Crescenzi (LSE), Marco Di Cataldo (LSE) and Mara Giua (LSE, University Roma Tre)

 

National and sub-national governments around the world have deployed a wide array of public policy tools to attract Foreign Direct Investment – from tax breaks and light regulations to subsidised facilities and new transport infrastructure. The problem is that there is very limited evidence to […]

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    Why foreign investment clicks in some cities and regions, while others are left behind.

Why foreign investment clicks in some cities and regions, while others are left behind.

      By Riccardo Crescenzi (LSE)

The beauty contest between a number of USA cities to host the new Amazon base has unveiled how important the location of major companies is for regional and city development. However, it also showed how difficult it is for cities and regions to gain from what is potentially a race-to-the-bottom where only big Multinationals are […]

Cities, Multinationals, and Trade

    This post analyses the prospects for trade and foreign direct investment (FDI) diversification, with a particular focus on the UK and Canada in the age of Brexit. Daniel Shapiro, Saul Estrin, Christine Cote, Klaus Meyer, and Jing Li examine the nature of trade in services using ideas developed in the international business and economic geography literatures to explore the interrelationships among multinational enterprises, global value […]