Title

Socially responsible foreign direct investment: A challenge to TNCs in emerging markets

Date of this Version

1-1-2012

Document Type

Journal Article

Publication Details

Citation only

Tian, X., Song, M., & Tan, R. (2012). Socially responsible foreign direct investment: A challenge to TNCs in emerging markets. Journal for International Business and Entrepreneurship Development, 6(2), 158 - 171

Access the journal

2012 HERDC submission. FoR code: 150308

© Copyright Inderscience Enterprises Ltd, 2012

ISSN

1549-9324

Abstract

A widening gap between the rich and the poor is found in most, if not all, emerging market countries that have recently opened up to FDI and is threatening the sustainability of economic progress in these countries. The study finds strong evidence that FDI contributes to the widening gap between rich and poor regions through negative productivity spillovers in the largest emerging market of China, and provides some theoretical explanations. The study discusses implications of the findings for transnational corporations in making socially responsible investment and for emerging market countries in attracting foreign investors to poor regions.

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This document has been peer reviewed.