IDEAS home Printed from https://ideas.repec.org/a/wly/jintdv/v20y2008i4p502-525.html
   My bibliography  Save this article

Foreign direct investment in small island developing states

Author

Listed:
  • Robert Read

    (Department of Economics, Lancaster University Management School, Lancaster, UK)

Abstract

The role of foreign direct investment (FDI) in small island developing states (SIDS) is an issue that has been neglected until relatively recently. The reasons for this lack of interest are unsurprising, given both the low absolute volume of capital flows involved and the general neglect of issues relating directly to SIDS in the mainstream theoretical and empirical economics literature. For SIDS themselves however, FDI represents an important additional source of investment capital and a potentially critical contributor to growth and development. This paper represents one of the first attempts to analyse the determinants of the inflows of FDI to SIDS. The analysis is undertaken in the context of the existing literature on the determinants of FDI inflows, incorporating insights drawn from recent research on the determinants of growth in small states. Copyright © 2008 John Wiley & Sons, Ltd.

Suggested Citation

  • Robert Read, 2008. "Foreign direct investment in small island developing states," Journal of International Development, John Wiley & Sons, Ltd., vol. 20(4), pages 502-525.
    • Handle: RePEc:wly:jintdv:v:20:y:2008:i:4:p:502-525
    DOI: 10.1002/jid.1477
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1002/jid.1477
    File Function: Link to full text; subscription required
    Download Restriction: no
    File URL: https://libkey.io/10.1002/jid.1477?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. de Mello, Luiz R, Jr, 1999. "Foreign Direct Investment-Led Growth: Evidence from Time Series and Panel Data," Oxford Economic Papers, Oxford University Press, vol. 51(1), pages 133-151, January.
    2. Borensztein, E. & De Gregorio, J. & Lee, J-W., 1998. "How does foreign direct investment affect economic growth?1," Journal of International Economics, Elsevier, vol. 45(1), pages 115-135, June.
    3. David W Loree & Stephen E Guisinger, 1995. "Policy and Non-Policy Determinants of U.S. Equity Foreign Direct Investment," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 26(2), pages 281-299, June.
    4. Armstrong, H. & De Kervenoael, R. J. & Li, X. & Read, R., 1998. "A comparison of the economic performance of different micro-states, and between micro-states and larger countries," World Development, Elsevier, vol. 26(4), pages 639-656, April.
    5. Armstrong, H W & Read, R, 2000. "Comparing the Economic Performance of Dependent Territories and Sovereign Microstates," Economic Development and Cultural Change, University of Chicago Press, vol. 48(2), pages 285-306, January.
    6. Steven Globerman & Daniel M Shapiro, 1999. "The Impact of Government Policies on Foreign Direct Investment: The Canadian Experience," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 30(3), pages 513-532, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Skerdilajda Zanaj & Patrice Pieretti & Benteng Zou, 2021. "On the long run sustainability of small jurisdictions," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 48(1), pages 15-35, March.
    2. Ronald Ravinesh Kumar & Peter Josef Stauvermann, 2023. "Tourism and economic growth in the Pacific region: evidence from five small island economies," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 28(3), pages 894-921, July.
    3. Augustin Kwasi Fosu & Dede Woade Gafa, 2020. "Development Strategies for the Vulnerable Small Island Developing States (SIDS)," Working Papers 202073, University of Pretoria, Department of Economics.
    4. Shimaa Elkomy & Hilary Ingham & Robert Read, 2021. "The Impact of Foreign Technology and Embodied R&D on Productivity in Internationally Oriented and High-Technology Industries in Egypt, 2006–2009," Journal of Industry, Competition and Trade, Springer, vol. 21(2), pages 171-192, June.
    5. Dunn, Leslie, 2011. "The Impact of Political Dependence on Small Island Jurisdictions," World Development, Elsevier, vol. 39(12), pages 2132-2146.
    6. Han, Yutao & Pieretti, Patrice & Zanaj, Skerdilajda & Zou, Benteng, 2014. "Asymmetric competition among nation states: A differential game approach," Journal of Public Economics, Elsevier, vol. 119(C), pages 71-79.
    7. Shimaa Elkomy & Hilary Ingham & Robert Read, 2020. "The Impact of Foreign Technology & Embodied R&D On Productivity in Internationally-Oriented & High-Technology Industries in Egypt, 2006-2009," Working Papers 293574925, Lancaster University Management School, Economics Department.
    8. -, 2009. "Economic survey of the Caribbean 2008-2009," Sede Subregional de la CEPAL para el Caribe (Estudios e Investigaciones) 38689, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    9. Dinkar Nayak & Rahul N. Choudhury, 2014. "A selective review of foreign direct investment theories," ARTNeT Working Papers 143, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).
    10. Cristiano Cechella, 2011. "The influence of cultural affinity for the boost of Brazilian investment in Portugal," ERSA conference papers ersa10p446, European Regional Science Association.
    11. Feeny, Simon & Iamsiraroj, Sasi & McGillivray, Mark, 2014. "Growth and Foreign Direct Investment in the Pacific Island countries," Economic Modelling, Elsevier, vol. 37(C), pages 332-339.
    12. Yury Zaytsev, 2016. "Diagnostics of foreign direct investments inflow in Russian Federation: theoretical and practical issues," International Journal of Trade and Global Markets, Inderscience Enterprises Ltd, vol. 9(2), pages 170-181.
    13. Moore, Winston & CRAIGWELL, ROLAND, 2008. "Foreign direct investment and tourism in SIDS: evidence from panel causality tests," MPRA Paper 33438, University Library of Munich, Germany.
    14. Mahadevan, Renuka & Asafu-Adjaye, John, 2013. "Exploiting comparative advantage in agriculture and resources: the way forward for Small Island States," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 57(3).
    15. Francisco Silva & Miguel Roque, 2024. "Building the Framework for Sustainable Tourism in Príncipe Island," Tourism and Hospitality, MDPI, vol. 5(1), pages 1-12, March.
    16. Eric Evans Osei Opoku & Alex O. Acheampong & Janet Dzator & Nana Kwabena Kufuor, 2022. "Does environmental sustainability attract foreign investment? Evidence from developing countries," Business Strategy and the Environment, Wiley Blackwell, vol. 31(7), pages 3542-3573, November.
    17. Françoise RIVIERE & Michel DIMOU, 2017. "Modèles et stratégies de développement des petites économies insulaires. Revue de la littérature et nouveaux paradigmes," Working Paper 0bd96404-7210-4678-93d6-4, Agence française de développement.
    18. -, 2009. "Economic growth in the Caribbean," Sede Subregional de la CEPAL para el Caribe (Estudios e Investigaciones) 38668, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    19. Yoichi Otsubo & Theoharry Grammatikos & Thorsten Lehnert, 2012. "Market Perceptions of US and European Policy Actions Around the Subprime Crisis," DEM Discussion Paper Series 12-14, Department of Economics at the University of Luxembourg.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Shah, Syed Hasanat & Hasnat, Hafsa & Cottrell, Simon & Ahmad, Mohsin Hasnain, 2020. "Sectoral FDI inflows and domestic investments in Pakistan," Journal of Policy Modeling, Elsevier, vol. 42(1), pages 96-111.
    2. Kevin S. Nell & Maria M. De Mello, 2019. "The interdependence between the saving rate and technology across regimes: evidence from South Africa," Empirical Economics, Springer, vol. 56(1), pages 269-300, January.
    3. Kanta Marwah & Akbar Tavakoli, 2004. "The Effect of Foreign Capital and Imports on Economic Growth: Further Evidence from Four Asian Countries," Carleton Economic Papers 04-02, Carleton University, Department of Economics.
    4. Delgado, Michael S. & McCloud, Nadine & Kumbhakar, Subal C., 2014. "A generalized empirical model of corruption, foreign direct investment, and growth," Journal of Macroeconomics, Elsevier, vol. 42(C), pages 298-316.
    5. Ozturk, Ilhan & Kalyoncu, Huseyin, 2007. "Foreign Direct Investment and Growth: An Empirical Investigation based on Cross-Country Comparison," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 60(1), pages 75-81.
    6. Samad, Abdul & Masih, Mansur, 2018. "Does institutional quality matter in attracting foreign direct investment? the case of Ethiopia based on ARDL approach," MPRA Paper 108493, University Library of Munich, Germany.
    7. Camilla Mastromarco & Léopold Simar, 2021. "Latent heterogeneity to evaluate the effect of human capital on world technology frontier," Journal of Productivity Analysis, Springer, vol. 55(2), pages 71-89, April.
    8. Cruz Mejía, Jose Vidal & Cruz-Rodríguez, Alexis, 2020. "Impacto de la inversión extranjera directa en el crecimiento económico, las exportaciones y el empleo de República Dominicana [Impact of foreign direct investment on economic growth, exports and em," MPRA Paper 100990, University Library of Munich, Germany.
    9. Milena Pesheva & Aleksandar Vasilev, 2017. "Endogenising Total Factor Productivity: The Foreign Direct Investment Channel in the Case of Bulgaria (2004-2013)," South-Eastern Europe Journal of Economics, Association of Economic Universities of South and Eastern Europe and the Black Sea Region, vol. 15(2), pages 127-145.
    10. Sabina Silajdzic & Eldin Mehic, 2022. "How Effective Is Tax Policy in Attracting Foreign Direct Investments in Transition Countries?," Central European Business Review, Prague University of Economics and Business, vol. 2022(1), pages 19-39.
    11. Waldkirch, Andreas & Ofosu, Andra, 2010. "Foreign Presence, Spillovers, and Productivity: Evidence from Ghana," World Development, Elsevier, vol. 38(8), pages 1114-1126, August.
    12. Hian Teck HOON & Frank S T Hsiao & Mei-Chu Wang Hsiao, 2020. "FDI, Exports, and GDP in East and Southeast Asia — Panel Data versus Time-Series Causality Analyses," World Scientific Book Chapters, in: Development Strategies of Open Economies Cases from Emerging East and Southeast Asia, chapter 4, pages 81-129, World Scientific Publishing Co. Pte. Ltd..
    13. Cheng, Yung-Hsiang & Tsai, Yi-Ling, 2009. "Factors influencing shippers to use multiple country consolidation services in international distribution centers," International Journal of Production Economics, Elsevier, vol. 122(1), pages 78-88, November.
    14. Argentino Pessoa, 2008. "Multinational Corporations, Foreign Investment, and Royalties and License Fees: Effects on Host-Country Total Factor Productivity," Notas Económicas, Faculty of Economics, University of Coimbra, issue 28, pages 6-31, December.
    15. Nauro F. Campos & Yuko Kinoshita, 2002. "Foreign Direct Investment as Technology Transferred: Some Panel Evidence from the Transition Economies," Manchester School, University of Manchester, vol. 70(3), pages 398-419, June.
    16. Cucos Paula – Roxana, 2016. "The Effects Of Foreign Direct Investment On The Economies Of Central And Eastern Europe Countries," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 4, pages 200-207, August.
    17. Cristina Jude, 2019. "Does FDI crowd out domestic investment in transition countries?," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 27(1), pages 163-200, January.
    18. He, Jie & Roland-Holst, David, 2004. "Chinese Growth and Atmospheric Pollution: An Empirical Assessment of Challenges and Opportunities," Conference papers 331279, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    19. Marasco, Antonio, 2002. "High tech foreign direct investment and its impact on economic development," MPRA Paper 5390, University Library of Munich, Germany, revised Apr 2005.
    20. Gál, Zoltán, 2019. "Az FDI szerepe a gazdasági növekedés és a beruházások területi differenciálódásában Magyarországon [The foreign direct investment role in Hungarys economic growth and territorial differentiation of," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(6), pages 653-686.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:jintdv:v:20:y:2008:i:4:p:502-525. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www3.interscience.wiley.com/journal/5102/home .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.