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Summary

Chapter Two focuses on the long-term effects of foreign direct investment at the subnational level in less developed peripheral regions. It identifies the different types and mechanisms of foreign direct investment in more developed (core) regions and less developed (peripheral) regions. It argues that positive long-term development effects of foreign direct investment in host regions depend on linkages between foreign-owned and domestic firms and spillovers from foreign-owned to domestic firms. It argues that in the long run, foreign direct investment tends to benefit core regions more than peripheral regions. Chapter Two also critically evaluates the most important conceptual approaches to foreign direct investment in peripheral regions developed in economic geography since the 1970s, namely the branch plant economy and truncation, new regionalism, new international division of labor and spatial divisions of labor, and the global production networks perspective.

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2 - Revisiting Foreign Direct Investment in Peripheral Regions

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2 - Revisiting Foreign Direct Investment in Peripheral Regions

Summary