The middle-income trap and foreign direct investment: a | ResearchBunny

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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

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