There are multiple successful paths for developing countries to acquire world ideas—China and Singapore relied heavily on direct foreign investment, while Japan and South Korea relied mostly on domestic firms copying foreign ideas—and both worked, so direct foreign investment is helpful but not essential; what fails is the India-style approach of admitting a firm then throwing up trade barriers, which froze the same cars in production for 30 years with no improvement.
causalpending
Speaker
Paul RomerEvidence Quote
“The one thing we know that doesn't work is like India 20 or 30 years ago, where they let um some car manufacturers from Britain come in, then they threw up trade barriers”
Created: 6/16/2026, 2:38:24 PM
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