The rest of the chapter is organized as follows. The
Section ‘Overview of the Recent Empirical Literature’
presents a broad overview of the evolution of the literature.
Recent findings on complementarities between
FDI and local policies and conditions are discussed
in section ‘Complementarities’. The Section ‘Channels,
Mechanisms, and Linkages’ summarizes recent efforts to
understand the mechanisms by which the benefits of
FDI are channeled to host economies. Ongoing concerns
are considered and concluding observations are offered
in the section ‘Concluding Comments.’