02089cas a2200325 a 4500 AALejournalIMF004391 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451974645 1018-5941 BD-DhAAL BD-DhAAL Shirai, Sayuri. Information Externalities Affecting the Dynamic Pattern of Foreign Direct Investment : The Case of China / Sayuri Shirai, Dongpei Huang. Washington, D.C. : International Monetary Fund, 1994. 1 online resource (28 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students The dynamic pattern of foreign direct investment (FDI) in developing countries shows a three-phase pattern. Despite government policies that promote it, initially the inflow of FDI is sluggish, followed by a period of considerable fluctuation before finally entering the stage of rapid growth. The paper explains the pattern through recourse to two concepts: the searching process of individual investors and the information externalities of investors in the aggregate. Policy implications that may serve to shift an economy of a developing country from small-scale FDI to one of rapidly expanding FDI are considered. As China is a clear example of this pattern, it has been selected to promote understanding of the process. Mode of access: Internet A Number Of Investor imf Investment Environment imf Investors Search imf Pioneer Investor imf WP imf China, People's Republic of imf Huang, Dongpei. IMF Working Papers; Working Paper ; No. 1994/044 Full text available on IMF http://elibrary.imf.org/view/journals/001/1994/044/001.1994.issue-044-en.xml IMF e-Library