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How TNC-Friendly Is Development Policy?

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Transnational Corporations and Development Policy

Part of the book series: Rethinking International Development Series ((RID))

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Abstract

In light of the expansion of Foreign Direct Investment (FDI) to and from Least Developed Countries (LDCs), what is happening to policy? Over the last few years a range of countries have enacted policy measures less favourable to FDI. In 2005 (and repeated in 2006) around one in five FDI policy changes were less favourable to FDI. In contrast, in the mid 1990s, one (or two) in a hundred policy changes were less favourable to FDI. As UNCTAD noted,

the year 2005 saw intense discussions in many parts of the world on the merits of liberalisation versus the need for economic protection. Most countries continued to liberalise their investment environments but others took steps to protect their economies from foreign competition or to increase state influence in certain industries … While policy changes that were more favourable to FDI dominated in 2005, the number of changes making a host country less welcoming to FDI was the highest ever recorded by UNCTAD. (2006: 23, 25)

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Authors
  1. Andy Sumner
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Editor information

Editors and Affiliations

  1. University of Strasbourg, France

    Eric Rugraff (Lecturer in Economics, researcher) (Lecturer in Economics, researcher)

  2. Bureau d’Economie Théorique et Appliquée (BETA), France

    Eric Rugraff (Lecturer in Economics, researcher) (Lecturer in Economics, researcher)

  3. University of Oxford, UK

    Diego Sánchez-Ancochea (University Lecturer in the Political Economy of Latin America) (University Lecturer in the Political Economy of Latin America)

  4. Institute of Development Studies in Brighton, UK

    Andy Sumner (Fellow of the Knowledge, Technology and Society Research Team, cross-disciplinary economist) (Fellow of the Knowledge, Technology and Society Research Team, cross-disciplinary economist)

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© 2009 Andy Sumner

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Sumner, A. (2009). How TNC-Friendly Is Development Policy?. In: Rugraff, E., Sánchez-Ancochea, D., Sumner, A. (eds) Transnational Corporations and Development Policy. Rethinking International Development Series. Palgrave Macmillan, London. https://doi.org/10.1057/9780230228412_4

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