Scandinavian Working Papers in Economics

Working Paper Series,
Research Institute of Industrial Economics

No 885: South-South FDI and Development in East Asia

Robert E. Lipsey and Fredrik Sjöholm ()
Additional contact information
Robert E. Lipsey: NBER, Postal: and City University of NY
Fredrik Sjöholm: Research Institute of Industrial Economics (IFN), Postal: and Lund University, Department of Economics, P.O. Box 7082, SE-220 07 Lund, Sweden

Abstract: This paper attempts to measure the size of South-South FDI in developing East Asia and the trends in it, and the characteristics of the investing countries and the investments themselves. It also summarizes the findings of studies in individual countries of the effects of these investments. The studies of individual countries will be used to try to find some consensus on differences between South-South FDI and North-South FDI. Among the comparisons of the two types of FDI we try to summarize are be findings about their industrial composition, their effects on their host countries and their host-country firms’ productivity, wages, and employment, and how these differ across industries.

Keywords: FDI; East Asia; South-South; Economic development

JEL-codes: F21; F23; O19

33 pages, October 6, 2011

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