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Why does more FDI occur in some industries?

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Why does so much Foreign Direct Investments (FDI) occur in such industries as pharmaceuticals and electronics products while little FDI occurs in such industries as clothing and paper products?

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Foreign Direct Investments (FDI) play a greater role in certain industries, like pharmaceuticals and electronics as opposed to other industries, like clothing and paper, for several reasons. When we look at the inherent differences between the two sets of industries, we can start to see why FDI is lower in one compared to the other. When we analyze the clothing and paper industry, we can see that the merchandise sold in these markets ...

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Why does so much Foreign Direct Investments (FDI) occur in such industries as pharmaceuticals and electronics products while little FDI occurs in such industries as clothing and paper products?

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Article review: Does inward foreign direct investment boost the productivity of domestic firms?

Read the attached journal article:

Haskel, J.E., Pereira, S.C. & Slaughter, M.J. (2007) 'Does inward foreign direct investment boost the productivity of domestic firms?'

Analyse and evaluate the argument presented in the article and the methodology used by the authors to examine the effects of inward FDI on local productivity. How far do their conclusions confirm or change any prior views you might have had based on your own experience or knowledge? Give full reasons for your answer.

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