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The cumulative FDI increased from 28 projects of total US$ 140 million FDI in 1988 to 8266 project for roughly US$ 78 billions at the end of 2006. FDI, therefore, has generally lived up to the expectation that it would play a key role in accelerating economic growth (GSO’s Statistical Yearbook, various years). [1]
The most important benefit of FDI in previous literature was proved to create spillover effect. Lipsey (2002), for instance, argued that the expecting FDI inflows would bring about new technologies, know-how and hence contribute to increasing productivity and competitiveness of domestic industries...
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