Socially responsible FDI: a challenge to TNCs in China
Date of this Version
The study finds strong evidence that FDI contributes to the widening gap between rich and poor regions through negative productivity spillovers in a large developing country like China, and provides some theoretical explanations. The study suggests that transnational corporations can help to narrow the gap through investing in poor regions in developing countries, and the government in developing countries should adopt effective policy measures to attract FDI to the poor regions.
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