Foreign direct investment

Throughout 1997, East Asia's unfolding financial crises provoked scathing critiques of the role of foreign investors in the region's downward spiral. According to the critics, the same foreign investment that had helped spawn the East Asian economic miracle had come to exacerbate, if not c...

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Bibliographic Details
Published in:The Brookings review 1998-07, Vol.16 (3), p.26
Main Author: Encarnation, Dennis J
Format: Article
Language:English
Subjects:
Economic conditions
Economic impact
Economic recovery
Economic theory
Finance
Foreign investment
Investors
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Summary:Throughout 1997, East Asia's unfolding financial crises provoked scathing critiques of the role of foreign investors in the region's downward spiral. According to the critics, the same foreign investment that had helped spawn the East Asian economic miracle had come to exacerbate, if not cause, the current problems. And for many Asians, as well as for analysts elsewhere, foreign investment remains a debatable part of any proposed solution. But before rushing to judgment about foreign investors in East Asia, it is important to remember that foreign investors come in many varieties. Each of these forms of foreign investment has responded differently to East Asia's ever-changing opportunities and risks. Discerning these differences is critical to understanding both the likely causes of, and the potential solutions to, the region's current financial crises. Among potential solutions, foreign direct investment figures prominently. The anticipated increase in US foreign direct investment across East Asia heralds a much larger set of important changes in that region's political economy.
ISSN:0745-1253
2328-2959