published on blogs.lse.ac.uk, 27.09.2023
There is no consensus about the benefits and drawbacks in foreign direct investments. In the aggregate, is there an economic logic to attracting it? Kasper Vrolijk studies the case of Uganda and finds both positive technology spillovers and negative market competition, with the latter occurring mostly through domestic buyer-supplier linkages. The Ugandan case shows that policies that curb some of the negative effects may be needed.