Foreign Investment and East Asian Economic Development

This article surveys and anabses the very lure literature on direct foreign investmenl (DFI) in the developing economies of East Asia and the Southwest Pacifi. Commencing with an overview of the MNC (mufcinafional corporation) presence in the region, successive sections a‐amine patterns and performance of major investors, trude‐DFI interrelationships, the impact of DFI on market structure and peflormance, the modalities of MNC entry, and host country policy. The latter, it is argues, is criticully importunt for assessments of the costs and benefits of DFI.