On the basis of these case studies of the automotive and electronics industries, which focused on the experiences of four countries, I concluded that FDI that was integrated into the global sourcing network of the parent multinationals would provide diverse positive impacts on the host economy (see the fifth section for a schematic inventory of positive impacts, some of which include externalities and some of which do not). I also concluded that FDI that was oriented toward protected domestic markets and prevented from being integrated into the parent’s global sourcing network by mandatory joint venture and domestic content requirements would not have such a positive effect (or would be much less beneficial).
How generalizable are the observations from these case studies, and how reliable are the conclusions about when FDI is most likely to make a strong positive contribution and when it is not?