Abstract:

This chapter investigates Israel’s role as an `emerging node’ in the global economy through the prism of foreign direct investment (FDI). Empirically, we investigate the probability that a foreign-owned firm will locate in Tel Aviv. Foreign ownership is taken here as representing one facet of globalization. While we are aware that globalization processes encompass much more than the presence of foreign investors in the domestic economy and should also include some investigation of Israeli firms operating abroad, this topic will be touched on, inter-alia, through the analysis of patterns of FDI. As will be noted, much of this latter process is bound up with FDI in that many Israeli, technologically advanced, firms that try to break into global markets do so through by being incorporated or traded abroad (see chapter 6 and also Haaretz, 2000; Red Herring, 2000). A presence abroad is therefore linked to some form of foreign control over local firms and thus the two facets of globalization are inter-linked.

Publisher's Version