summarize the central themes/topics in each reading, outline theoretical frameworks presented, record your impressions of the reading, and list 2-3 questions that each reading raises.assignments will...

Linda S. Goldberg Financial Sector FDI and Host Countries: New and Old Lessons • The financial sectors of many developing 1.Introduction countries are being reshaped dramatically by n the 1990s, foreign direct investment (FDI) became the rise in foreign direct investment, or FDI. the largest single source of external finance for many I 1 developing countries. Most discussions on the causes and ? The growth in financial sector FDI, in which effects of FDI have focused on flows into manufacturing and banks in industrialized countries establish real production sectors, where this type of investment has branches and facilities in emerging markets, traditionally been concentrated. More recently, however, FDI has drawn attention to the consequences of into the financial sector has soared, and the sector is being foreign ownership of banking resources. reshaped dramatically. Financial sector FDI, a relatively new phenomenon, ? An analysis of research on “real-side” FDI— typically takes the form of banks in industrialized countries investment into manufacturing and primary establishing branches and facilities in developing countries. resource industries—suggests that lessons in Following the dissolution of the Soviet Union, bank entry into these industries also apply to the financial Central and Eastern Europe in the early 1990s led to foreign sectors of host countries. ownership in local banking systems; today, such ownership often exceeds 80 percent of local banking assets. In addition, ? Real-side and financial sector FDI can the liberalization of financial sectors in Latin America was heighten the host country’s integration into likely spurred in part by foreign direct investment, especially world business cycles through improved in countries facing potential competitive losses to Asian allocative efficiency, higher technology economies. Within Latin America, the financial crises of the transfer rates, and greater wages. In...