Dispelling Canadian Myths About Foreign Direct Investment

Download or read book Dispelling Canadian Myths about Foreign Direct Investment written by Walid Hejazi and published by . This book was released on 2010 with total page 29 pages. Available in PDF, EPUB and Kindle. Book excerpt: The objective of this study is to examine the changing trends in Canada's inward and outward foreign direct investment (FDI) over the past several decades and to propose how public policies should be changed to ensure that Canada draws maximum benefits from foreign investment flows. The first section of this study provides definitions of FDI, distinguishes between portfolio and direct investment and highlights the importance of mergers and acquisitions as a type of FDI. The next section briefly considers the upsides and downsides of FDI, revisits the hollowing-out debate in Canada and discusses optimal policies. The study then reviews the trends in Canada's inward and outward FDI over the past several decades. The final section presents two empirical models of FDI and estimates the importance of key factors underlying Canada's changing FDI patterns. The study concludes with a discussion of the policy implications.--Document.