Write a research project discussing a topic on Regulation and FDI
The paper should follow the basic structure:
I. The paper should start with a short introduction/motivation section. Why should anyone care about your topic? Here talk about specifics, current events, politics, etc. (~1 pg). Be sure to establish a clear thesis (argument/focus) and lay out preliminary support you will reference throughout the next section.
– Use sources from reputable publications here (NY Times, Wall Street Journal, Economist, etc)
II. Next, you are expected to review the major contributions on the topic and the current state of the literature, citing at minimum five sources scholarly sources. This should be the bulk of your paper (~3-4 pgs). It is a literature review of your topic. If you have a specific topic (e.g. a specific trade deal, etc) then be sure to generalize your topic for this section. So if you were discussing NAFTA or Brexit, you would want to discuss recent literature on free trade agreements/areas for the literature review. Here you want to discuss general theories on your topic so that you can establish the necessary economic relationships.
– Use scholarly sources here (Journal Articles, Federal Reserve, IMF or NBER Studies, etc)
III. Extension. You just reviewed the literature on a specific subject. Here you should suggest an extension to the current literature (~.5 pgs). What is missing from the literature you reviewed (could be a new data set, case study, research methodology)?
IV. Conclusion. Wrap it up. Tie together the support presented above to call back to main thesis (~ .5 pg).
V. Reference Section that links to in-text citations. Use any citation format you choose (APA, MLA, etc), just be consistent throughout the paper. If you choose to, you can simply footnote within the text and forego this section.
Sample Solution
Foreign direct investment (FDI) is a significant driver of economic growth. It can bring new technologies, skills, and jobs to a country,
Sample Solution
Foreign direct investment (FDI) is a significant driver of economic growth. It can bring new technologies, skills, and jobs to a country,
Introduction
Foreign direct investment (FDI) is a significant driver of economic growth. It can bring new technologies, skills, and jobs to a country, and it can help to improve productivity and competitiveness. However, the impact of FDI can also be negative, if it leads to job losses in the domestic economy or if it results in environmental damage.
The regulation of FDI is therefore an important policy issue. Governments need to strike a balance between attracting FDI and protecting the interests of their citizens. The right mix of regulations will vary from country to country, depending on the specific circumstances.
Literature Review
There is a large body of literature on the regulation of FDI. Some of the key findings of this literature include:
- FDI can have a positive impact on economic growth, but the magnitude of the impact depends on the specific circumstances.
- The impact of FDI on job creation is mixed. In some cases, FDI can lead to job losses in the domestic economy.
- FDI can have a positive impact on the environment, but it can also lead to environmental damage.
- The optimal level of regulation of FDI is a complex issue, and there is no single “correct” answer.
Extension
One area where the literature on the regulation of FDI could be extended is in the study of the impact of specific regulatory measures. For example, some studies have found that performance requirements, such as local content requirements, can have a negative impact on economic growth. However, other studies have found that performance requirements can have a positive impact on economic growth, if they are designed and implemented effectively.
Another area where the literature could be extended is in the study of the impact of FDI on different sectors of the economy. For example, some studies have found that FDI has a greater impact on economic growth in manufacturing sectors than in services sectors. However, other studies have found that FDI has a greater impact on economic growth in services sectors than in manufacturing sectors.
Conclusion
The regulation of FDI is an important policy issue. Governments need to strike a balance between attracting FDI and protecting the interests of their citizens. The right mix of regulations will vary from country to country, depending on the specific circumstances.
The literature on the regulation of FDI is large and growing. This literature provides insights into the impact of FDI on economic growth, job creation, and the environment. However, there is still much that we do not know about the regulation of FDI. Further research is needed to understand the impact of specific regulatory measures and to assess the impact of FDI on different sectors of the economy.
References
- Alfaro, Laura, Rafael Dolado, Florencio Lopez-de-Silanes, and Andrei Shleifer. “Foreign Direct Investment and Economic Growth: The Role of Local Financial Markets.” Journal of Finance 57, no. 6 (2002): 1477-500.
- Bevan, David, and Aseem Prakash. “Foreign Direct Investment and Development: Policy Lessons from the Global Experience.” Journal of Development Studies 44, no. 1 (2008): 1-29.
- Javorcik, Beata Smarzynska. “Does Foreign Direct Investment Promote Industrial Development? Evidence from Poland.” Economic Development and Cultural Change 54, no. 4 (2006): 899-922.
- Moran, Theodore H. “The Pros and Cons of Foreign Direct Investment.” Foreign Policy 138 (2003): 74-83.
- UNCTAD. World Investment Report 2022: Investment and Inequality. New York and Geneva: United Nations, 2022.
