ANNOTATED BIBLIOGRAPHY

Annotated Bibliography: The Effects of Foreign Direct Investment

Rachael Bennett
Portland State University

ANNOTATED BIBLIOGRAPHY

Alfaro, L., Chanda, A., Kalemli-Ozcan, S., & Sayek, S. (2004). FDI and economic growth: the
role of local financial markets. Journal of international economics, 64(1), 89-112.
This sources states that forgien direct investment has a key role in economic growth, but also
plays a major role in domestic industries. It points out that the spill over from capital may not be
enough to stimulate surrounding countries, but more perminate forms of investment by foreign
direct invest are needed. This can be done in the form of infrastructure, and helps to keep capital
in the area. This source is relevant because it ties foreign direct investment with economic
growth and makes strong argument for the link between the two. The source also points out the
by-products of foreign direct investment and how they can be both harmful and helpful.

Banerjee, A., Benabou, R., & Mookherjee, D. (2006, January 1). Understanding Poverty.
Retrieved April 6, 2015, from https://books.google.com/books?
hl=en&lr=&id=MO33yNKH3PoC&oi=fnd&pg=PA17&dq=poverty
traps&ots=vz64CEpocM&sig=YttcyS23127V9-GFz2eZjo8n7Xs#v=onepage&q=poverty
traps&f=false
This book looks to explain as to why less developed countries are being left behind in terms of
economic and humanistic advancements. It does this through data and case studies, using
information from the 1960s to presents. The book also relies heavily on economic theories and
data to solidify its findings. In terms of relevance this source is both adequate for poverty traps as
well as foreign direct invest, for it compares the two within its data. This source will be helpful
in providing accurate data over a large span of time and finding correlations.

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Dang, G., & Low, S. (2014). Infrastructure investments in developing economies: The
case of Vietnam. Springer.
This source argues that construction plays a major role in developing countries and their abilities
to break away from poverty. The text points at foreign direct investment as a driver for increases
in construction, but also as a deterrent of investment. The text links the economy and
construction with one another and proceeds to explain how each play integral roles. The
relevance of this sources is the links it makes between foreign direct investment, construction,
and the economy. The source also outlines the effects of construction which are important to
note, for construction is often an outcome of foreign direct investment.

Ekmekiolu, E. (n.d.). The Effects of Globalization on World Income Inequality. Retrieved

April 6, 2015, from
http://www.academia.edu/1600985/The_Effects_of_Globalization_on_World_Income_Inequality
This source defines globalization and relates it to foreign direct investment and income
inequality. Using economic theories this source compares and contrasts its claims to other
popular ideas. But focus mainly on the impact globalization has on income inequality. This
source is relevant due to the connections it makes between income inequality and globalization.
Also the way the source relates foreign direct investment to globalization is useful in helping
develop my argument.

Foreign Direct Investment into China Speeds Up. (2015, April 16). Retrieved April 16,

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2015, from http://www.industryweek.com/global-economy/foreign-direct-investment-chinaspeeds

This news article states that Chinas foreign direct investment is up over 2% though out bound
investment is beginning to slow. The article points out that China is an epicenter for foreign
direct investment and it seems they are continuing to be. Though they are at slowest growth rate
since 1990, with investment in other countries beginning to soar. This article is relevant because
it brings the scholarly ideas behind foreign direct investment into real world issues. This article
helps to illustrate the dependency foreign direct investment can cause.

Froot, K. A. (Ed.). (2008). Foreign direct investment. University of Chicago Press.

This source provides a lengthy look into foreign direct investment and the effects it can have.
The book states that much of the outcomes of foreign directing investment are in the interest of
the firms and benefit the community as a side product. This sources cites not only the growth in
countries but also the industries effected by foreign direct investment. This source is made
relevant not only be its mention of industries but approach to foreign direct investment. By
mentioning the effects it can have it show how dynamic this economic approach can be, and also
how unpredictable. This source gives good evidence as to how precarious a communitys
position that relies on foreign direct investment can be.

Lipsey, R. E. (2004). Home-and host-country effects of foreign direct investment. In

Challenges to globalization: Analyzing the economics (pp. 333-382). University of Chicago
Press.

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The source above defines foreign direct investment and illustrates the effects it can have. This is
done form both view points of the host and home countries, bringing in two sides to the
argument. The source backs up its claim with several points of data and additional case studies.
This sources is relevant due to its in-depth look into foreign direct investment. Providing
background information and allowing connections to be drawn that would otherwise be
inaccurate assumptions.

Thomas, L. (2015, April 14). I.M.F. Warns of Uneven Economic Growth. Retrieved April 17,
2015, from http://www.nytimes.com/2015/04/15/business/economy/imf-warns-ofuneven-economic-growth.html?_r=0
This article highlights the growth of the global economy and the difference between the
developed and emerging economies. It argues that the slow growth of the emerging economies
despite the revival of the developed economies, could collectively weigh down the global
economy. The article also points to Chinas lack of recent growth as a focus point, as it was a
leader in economic growth and investment. This article is relevant because it focuses of current
events that effect not only one area but the global market. The article explores the idea of slow
growth among countries, illustrating how interconnected the world markets have become. Giving
a platform as to how foreign direct investment might impact a larger area than just the nation it is
brought to.

W., C. (2014, September 19). Do poor countries really get richer? Retrieved April 16, 2015, from
http://www.economist.com/blogs/freeexchange/2014/09/poverty-traps-0

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The article above illustrates what poverty traps are and helps to outline the arguments for and
against them. Providing data to back up the claims made, this article sides that poverty traps are
persistent though have more negative effects in the short term. The article looks at different time
periods as well as different regions and nations to achieve this conclusions. This article is
relevant because it not only addresses poverty traps but shows both sides. The article also
reference different time periods which is import because it will be helpful when relating poverty
traps to foreign direct investment.

Yuan, Y. (n.d.). Academics Analyze Why China Becomes World's Top Recipient of Foreign
Investments. Retrieved April 16, 2015, from http://wnc.eastview.com/wnc/article?
id=36283629
The argument of this source is that Chinas rapid growth is due to an influx in capital flow,
driven by direct investment. The article makes the claim that this capital out flow from the
developed world is increasing the demand for work within China as well as stimulating the
economy. However the arcticle is also quick to point out that this growth is not entirely positive
as much of the money made in China may not be place back into the economy. This article is
relevant because it outlines a case study and the impact foreign direct investment can have on a
region. When speaking of abstract ideas such as the impact of capital flows on peoples lives it is
important to have an example of such a thing occurring.