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- W2897821560 abstract "Abstract To prepare an answer to the question of how a developing country can attract foreign direct investment (FDI), this paper explored the factors and policies that may help bring FDI into a developing country by utilising an extended version of the knowledge‐capital model. With a special focus on the effects of a free trade agreement (FTA) or an economic partnership agreement (EPA) between a pair of market and non‐market countries, simulations with the model revealed the following: (i) although FTA/EPA generally tends to increase FDI to a developing country, the possibility of improving welfare through increased demand for skilled and unskilled labour decreases as the size of the country grows; (ii) a developing country may suffer severe welfare losses through FTA/EPA if the availability of skilled labour is extremely limited; and (iii) a developing country can enhance welfare gains from a FTA, and it is even possible to recover the welfare effects from negative to positive, by making the arrangement an EPA." @default.
- W2897821560 created "2018-10-26" @default.
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- W2897821560 date "2018-11-22" @default.
- W2897821560 modified "2023-09-25" @default.
- W2897821560 title "Is FTA/EPA effective for a developing country to attract FDI? The knowledge-capital model revisited" @default.
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- W2897821560 doi "https://doi.org/10.1111/twec.12738" @default.
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