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Regions, Globalization, and the Knowledge-Based Economy$
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John H. Dunning

Print publication date: 2002

Print ISBN-13: 9780199250011

Published to Oxford Scholarship Online: November 2003

DOI: 10.1093/0199250014.001.0001

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PRINTED FROM OXFORD SCHOLARSHIP ONLINE (oxford.universitypressscholarship.com). (c) Copyright Oxford University Press, 2021. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in OSO for personal use. date: 28 January 2021

Regional Integration and Foreign Direct Investment

Regional Integration and Foreign Direct Investment

(p.109) 5 Regional Integration and Foreign Direct Investment
Regions, Globalization, and the Knowledge-Based Economy

Magnus Blomström

Steven Globerman

Ari Kokko

Oxford University Press

It is suggested that the most serious challenge facing a study of the relationship between regional integration and foreign direct investment is the multidimensional nature of the issue. In particular, there is reason to believe that the relevant linkages will vary between different integration agreements, and between countries and industries participating in any specific agreement. This chapter therefore sets out some broad theoretical considerations surrounding the linkages between regional integration agreements and foreign direct investment. It then refines these broad considerations into a more focused framework that accounts for some indirect linkages that have, hitherto, been largely ignored in the relevant literature. A brief examination is then made of three recent, and very distinct, cases of regional integration in North and South America with reference to the framework already discussed: Canada joining CUSFTA (the Canada–USA Free Trade Agreement); Mexico's accession to NAFTA (North American Free Trade Agreement); and the first stage of integration in MERCOSUR (Mercado Comun del Sur).

Keywords:   Canada–USA Free Trade Agreement, CUSFTA, foreign direct investment, Mercado Comun del Sur, MERCOSUR, NAFTA, North American Free Trade Agreement, regional integration, regional integration agreements

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