ScholarLens Back to search
2011•Journal of Beijing Institute of TechnologyRequires access

The Policy Revelation of FDI Screening and Host Country Welfare:Based on Principal-agent Theory

Yongqiang Lin

Open publisher page 0 citations

Abstract

Inflow of FDI brings some effect on economic growth and welfare for host country.Through analyzing on the effects of FDI,we can divide the FDI into two kinds which arequantitative-typeFDI andqualitative-typeFDI.Host country can entrust multi-national companies with introducing different type of FDI for its economic growth.According to Principal-agent Theory,we obtained:(1) excessive preference forquantitative-typeFDI of host country may deteriorate its welfare level,whilequalitative-typeFDI may enhance it;(2) host country should make different policy on different type of FDI,according to the different relationship of marginal costs of the two types of FDI.

About this research paper

What this paper is about

Inflow of FDI brings some effect on economic growth and welfare for host country.Through analyzing on the effects of FDI,we can divide the FDI into two kinds which arequantitative-typeFDI andqualitative-typeFDI.Host country can entrust multi-national companies with introducing different type of FDI for its economic growth.According to Principal-agent Theory,we obtained:(1) excessive preference forquantitative-typeFDI of host country may deteriorate its welfare level,whilequalitative-typeFDI may enhance it;(2) host country should make different policy on different type of FDI,according to the different relationship of marginal costs of the two types of FDI.

Why it matters

A significance statement is not available in the OpenAlex record.

Key contribution

A contribution statement is not available in the OpenAlex record.

Method / approach

Method details are not available in the OpenAlex metadata.

Main findings

Findings are not separately available in the OpenAlex metadata.

Limitations

Limitations are not available in the OpenAlex metadata.

Applications

Application details are not available in the OpenAlex metadata.

Available abstract

Inflow of FDI brings some effect on economic growth and welfare for host country.Through analyzing on the effects of FDI,we can divide the FDI into two kinds which arequantitative-typeFDI andqualitative-typeFDI.Host country can entrust multi-national companies with introducing different type of FDI for its economic growth.According to Principal-agent Theory,we obtained:(1) excessive preference forquantitative-typeFDI of host country may deteriorate its welfare level,whilequalitative-typeFDI may enhance it;(2) host country should make different policy on different type of FDI,according to the different relationship of marginal costs of the two types of FDI.

Key concepts: Foreign direct investment, Host (biology), Welfare, Preference, International economics, Principal (computer security), Economics, China

Related papers

Related paper 1Related paper 2Related paper 3
Back to paper searchBrowse research topicsOriginal source
The Policy Revelation of FDI Screening and Host Country Welfare:Based on Principal-agent Theory — Research Paper | ScholarLens