Old wine in new bottles? Non-traditional sources of foreign direct investment
Maximiliano Sosa Andrés, Christiane Krieger-Boden, Peter Nunnenkamp, 8 March 2012
Investors from emerging and developing economies are becoming bigger players in FDI, particularly in developing countries. While some raise concerns that emerging economies might gain control over raw materials, others are hopeful that non-traditional investors might provide new opportunities for development. This column analyses these new FDI flows and finds that while fears may be exaggerated so too is the optimism.
The share of developing and emerging economies in total outward FDI flows multiplied from a meagre 5% in 1990 to almost 30% in 2010 (Figure 1). The flows from the BRICS and other new sources proved to be stable when those from developed economies crashed by 50% due to the financial crisis in 2007–08.
Figure 1. FDI outflows by origin 1990–2010
Topics: Development, International finance
Tags: developing economies, emerging economies, FDI
“Development and the crisis” – a critical reading
Francisco Rodríguez, 23 February 2009
The development theme in the Global Crisis Debate has elicited many important and novel contributions on what the crisis means for the developing world and how developing nations should react. This column provides a synthesis and commentary of the key proposals.
The “Development and the crisis” theme in Vox’s Global Crisis Debate provides a refreshing counterweight to current discussions’ overwhelming emphasis the effect of the crisis on developed nations.
Topics: Development, Global crisis
Tags: bank nationalisation, child poverty, developing economies, G20, Georgetown, global crisis, preschool, reserve currency, US dollar