Virtual Interactive Think Tank for China FDI: Engineering Knowledge for Action in Modern Development

This paper argues that imaginative innovations and modernizing improvements are badly needed in the research, formulation, and implementation of policy regarding foreign direct investment (FDI) in emerging markets. It is argued that such innovations are offered by behavioural economics, new institutional economics, and an overarching knowledge management (KM) perspective predicated on the role of knowledge and information in modern theories of the functioning of markets. The latest developments in trade and investment between China and the West are presented as one more piece of evidence to support this thesis.