Multinational enterprises (MNEs) play a pivotal role in the development of many emerging markets. The prime objective of this paper is to motivate international business scholars (beyond those working within a traditional economics paradigm) to engage in research on the role of FDI in emerging economy societies. It thus reviews existing literature, and proposes extensions of the research agenda that management scholars may wish to pursue. Sections consider: (1) Spillovers in a changing global economy; (2) Macroeconomic perspectives; (3) Knowledge spillovers; (4) Inter-industry linkage effects; (5) Competition and crowding out; (6) Societal effects; (7) Investor and project specific determinants of spillovers; and (8) a research agenda.
DRC Working Papers, Foreign Direct Investment in Emerging Markets, Centre for New and Emerging Markets, London Business School, No. 15, London, UK, 55 pp.