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maxgluteyesterday at 5:53 PM1 replyview on HN

Yeah I think this what most miss. FDI is good, great if eventually lead to domestic brand to capture more % of value, like Asian Tigers. I'm not sure if the case in EU, some GDP accounting can grossly conflate actual FDI contribution, i.e. when PRC captured $6 labour for each iphone assembled but it was counting full device cost $100s towards GDP instead of just value add. Same concept as Ireland GDP & corporate tax laundering.

Cursory search shows 1% companies in Poland are foreign enterprises which drive ~40% of output, ~30% of workforce and ~70% of exports. These are companies that will dip if Poland gets too expensive or geopolitics, in the meantime what is Samsung or Hyundai or Huawei of Poland. At end of day, countries need national champions committed to their own midstream industries who end up capturing the rents.


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jmalickiyesterday at 6:12 PM

Samsung, Hyundai, or Huawei never happen without starting as FDI or cheap outsourcing.

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