Foreign Investment in East Asia: A Survey

Abstract

This article updates the May 1989 literature survey on foreign direct investment (FDI) in the East Asian region published in this journal. Following an overview of trends of FDI in the 1990s, it focuses on three key issues: the impact of the recent Asian economic crisis on FDI inflow relative to other forms of capital inflows; the link between FDI and trade; and technology transfer and adaptation. It is too early to discern the implications of the crisis for host‐country policies and investment decisions of multinational corporations, but the indications are that FDI will continue to play a pivotal role in economic transformation, and in regional and global economic integration.

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