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Foreign direct investment in small island developing states

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  • 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
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    References listed on IDEAS

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    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.

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