VoxEU Video Financial Markets International trade

The local impacts of global investment flows

Riccardo Crescenzi, Arnaud Dyevre and Roberto Ganau from the Global Investment - Local Development research team at LSE present some new evidence of the impacts -both positive and negative- of Foreign Direct Investments on local economies. Understanding this impact is key to uncovering the mechanisms of knowledge diffusion, global cooperation and local growth. While policy makers go the extra mile to try to attract investments, they often hold serious misconceptions about the impact of multinationals.