Over the last decade Foreign Direct Investment (FDI) became one of the main vehicles for the increasing integration of the world economy. Although almost all countries have started to compete eagerly for FDI the consequences of increasing FDI-flows are still a point of issue. The Asian crisis in particular has reminded us that an understanding of the underlying principles, the determinants and the effects of FDI is necessary for a proper assessment of adequate policy measures. Offering contributionsfrom European and Asian perspectives, the book addresses the role, the determinants and economic effects of FDI. It provides a blend of informal discussion, recent theory, and empirical analysis on FDI. It covers macroeconomic as well as microeconomic and financial aspects, including the effects of taxes, network effects and multinationals.

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