Economics

The middle-income trap and foreign direct investment: a mixed-methods approach centered on Mexico and South Korea

A. W. D. Anastasi

This research by Anthony William Donald Anastasi delves into the complex relationship between foreign direct investment (FDI) inflows and the middle-income trap. Through a comparative study of Mexico and South Korea's automotive industries, surprising insights emerge: higher FDI may actually hinder progress in escaping the middle-income trap! Explore alternative strategies for middle-income countries to thrive.

00:00

Playback language: English

Index

Abstract

This mixed-methods research examines the relationship between foreign direct investment (FDI) inflows and escaping the middle-income trap (MIT). Using a comparative case study of the automotive industries in Mexico and South Korea (1960s-2000s) and logistic regressions, a negative correlation is found: higher FDI inflows are associated with a decreased likelihood of escaping the MIT. This supports the World-Systems Theory perspective. Middle-income countries are advised to be cautious about accepting FDI in strategic industries, suggesting alternatives like purchasing foreign technology or joint ventures ensuring technology transfer.

Publisher

HUMANITIES AND SOCIAL SCIENCES COMMUNICATIONS

Published On

Sep 15, 2024

Authors

Anthony William Donald Anastasi

Related Publications

Explore these studies to deepen your understanding of the subject.

Economics

Escaping the middle-income trap: A study on a developing economy

M. J. A. Islam, I. Mahmud, et al.

Humanities

Emotional conflict and trauma: the recovery of stolen memory using a mixed-methods approach

B. Castro-fernández, G. Jiménez-esquinas, et al.

Economics

The dynamic relationship between trade openness, foreign direct investment, capital formation, and industrial economic growth in China: new evidence from ARDL bounds testing approach

Y. Hao

Economics

Foreign direct investment, total factor productivity, and economic growth: evidence in middle-income countries

H. T. P. Le, H. Pham, et al.

Listen, Learn & Level Up

Over 10,000 hours of research content in 25+ fields, available in 12+ languages.

No more digging through PDFs, just hit play and absorb the world's latest research in your language, on your time.

listen to research audio papers with researchbunny