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

Xiaowen Tian, Moxi Song, Ran Tian

Research output: Contribution to journalArticleResearchpeer-review

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.
Original languageEnglish
Pages (from-to)158-171
Number of pages14
JournalJournal for International Business and Entrepreneurship Development
Volume6
Issue number2
DOIs
Publication statusPublished - 2012

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Foreign direct investment
Emerging markets
Sustainability
Economic development
Transnational corporations
Productivity spillovers
China
Foreign investors
Socially responsible investment

Cite this

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Socially responsible foreign direct investment : A challenge to TNCs in emerging markets. / Tian, Xiaowen; Song, Moxi; Tian, Ran.

In: Journal for International Business and Entrepreneurship Development, Vol. 6, No. 2, 2012, p. 158-171.

Research output: Contribution to journalArticleResearchpeer-review

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AU - Song, Moxi

AU - Tian, Ran

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AB - 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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