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FDI, Industrial Labor Transformation and Growth: The Cases of South Korea, Malaysia, and Thailand

In: The Changing Economic Environment in Asia

Author

Listed:
  • Nathalie Fabry
  • Bertrand Maximin

Abstract

Developing countries used to be rather hostile to inward Foreign direct investment (FDI); they feared that FDI might lead to uneven global development. This attitude changed radically in the mid-1980s, particularly in Asia (Calvo, Laderman and Reinhart 1996; Markusen and Venables, 1997; Lall, 1998). Since then, host countries’ governments have welcomed increasing flows of inward FDI, essentially in the manufacturing sector. They now consider that FDI may be an ‘industrialization instrument’ less dangerous than international indebtedness (Rodriguèz-Clare, 1996). The most visible characteristic of this change was the surge of FDI from developed countries in Asia until the Asian crisis broke out in the summer of 1997 (Hill and Athukorala, 1998).

Suggested Citation

  • Nathalie Fabry & Bertrand Maximin, 2001. "FDI, Industrial Labor Transformation and Growth: The Cases of South Korea, Malaysia, and Thailand," Palgrave Macmillan Books, in: Bernadette Andreosso-O’Callaghan & Jean-Pascal Bassino & Jacques Jaussaud (ed.), The Changing Economic Environment in Asia, chapter 1, pages 11-25, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-28726-6_2
    DOI: 10.1007/978-0-230-28726-6_2
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