Page d.Created asset-seeking 162 e.Other motives...... 163 C.CONCLUSIONS. .163 NOTES. ,163 CHAPTER V.IMPACT ON HOME AND HOST DEVELOPING ECONOMIES... 169 A. IMPACT ON HOME ECONOMIES 169 1.Outward FDI and the competitiveness of developing-country TNCs.. .170 2 Outward FDI and the competitiveness and restructuring of home-country industries... 177 3 Macroeconomic,trade and employment effects in the home economy 178 I resource flows and balance of payments. 180 180 Employment 181 4. Concluding remarks... 182 B.IMPACT ON HOST ECONOMIES. 183 t on estment Technology and skills 18 trade 89 Other impacts. 195 3.Concluding remarks. 196 C.CONCLUSIONS. 197 NOTES. 19 CHAPTER VI.NATIONAL AND INTERNATIONAL POLICIES 201 A. THE ROLE OF HOME-COUNTRY POLICIES .202 1.Competitiveness policies and outward FDI. 202 2 Policies specific to outward FDI 203 62 ofOtbrCTDoutwardFDl Main instruments used to promote outward FDI Agencies promoting outward FI 21 3.Mitigating potential risks associated with outward FDI 218 B.IMPLICATIONS FOR HOST-COUNTRY POLICIES. ,219 219 eaction s to take eovers by TNCs m de eloping countrie viii World Investment Report 2006. FDI from Developing and Transition Economies: Implications for Development d. Created asset-seeking ............................................................................................................ 162 e. Other motives......................................................................................................................... 163 C. CONCLUSIONS .................................................................................................................................. 163 NOTES ................................................................................................................................................................ 163 CHAPTER V. IMPACT ON HOME AND HOST DEVELOPING ECONOMIES................................................................................ 169 A. IMPACT ON HOME ECONOMIES ............................................................................................... 169 1. Outward FDI and the competitiveness of developing-country TNCs....................................... 170 2. Outward FDI and the competitiveness and restructuring of home-country industries............ 175 a. Industrial competitiveness .................................................................................................... 175 b. Industrial restructuring.......................................................................................................... 177 3. Macroeconomic, trade and employment effects in the home economy .................................... 178 a. Financial resource flows and balance of payments ............................................................ 179 b. Domestic investment ............................................................................................................. 180 c. International trade ................................................................................................................. 180 d. Employment ........................................................................................................................... 181 4. Concluding remarks....................................................................................................................... 182 B. IMPACT ON HOST ECONOMIES ................................................................................................. 183 1. Assessing host-country impact .................................................................................................... 184 2. Impact on host developing economies ......................................................................................... 184 a. Financial resource flows and investment ............................................................................ 185 b. Technology and skills ........................................................................................................... 188 c. International trade ................................................................................................................. 189 d. Employment ........................................................................................................................... 192 e. Other impacts......................................................................................................................... 195 3. Concluding remarks....................................................................................................................... 196 C. CONCLUSIONS .................................................................................................................................. 197 NOTES ................................................................................................................................................................ 199 CHAPTER VI. NATIONAL AND INTERNATIONAL POLICIES ............................ 201 A. THE ROLE OF HOME-COUNTRY POLICIES ........................................................................... 202 1. Competitiveness policies and outward FDI................................................................................. 202 2. Policies specific to outward FDI .................................................................................................. 203 a. More countries remove barriers to outward FDI ................................................................ 204 b. Active promotion of outward FDI ....................................................................................... 208 (i) Main instruments used to promote outward FDI........................................................ 209 (ii) Agencies promoting outward FDI ............................................................................... 212 c. Home-country measures to promote South-South FDI ...................................................... 217 3. Mitigating potential risks associated with outward FDI ............................................................ 218 B. IMPLICATIONS FOR HOST-COUNTRY POLICIES ................................................................ 219 1. Host-country policies for maximizing the benefits from South-South FDI ............................. 219 2. More FDI sources for IPAs to target ............................................................................................ 220 3. Reactions to takeovers by TNCs from developing countries..................................................... 222 Page