FDI from Developing Countries : A Vector for Trade and Development

Korea's experience with outward foreign direct investment (FDI) demonstrates that the ancillary benefits of such investment -- knowledge and management transfer, market acquisition and skills enhancement -- can be substantial for individual firms. Moreover, the resulting increased robustness of these enterprises contributes to the strength and stability of the economy as a whole. While it is true that inward FDI carries similar benefits, outward FDI -- driven by the prerogatives of the domestic company -- is integrated into existing business plans and strategies, and therefore constitutes a mo