FDI from BRICs to LICs: Emerging Growth Driver?
AbstractDespite the rapid increase in FDI flows to LICs, there have been relatively few studies that have specifically examined these flows. This paper attempts to partially fill the void by throwing light on one particularly dynamic aspect of global FDI-flows from Brazil, Russia, India and China (BRICs). The paper finds that official data sources undoubtedly underestimate the volume and scope of FDI flows as many small and medium-sized enterprises (SMEs) do not always register their investment. As a result, while it is difficult to estimate accurately the growth impact of BRIC FDI, there is case study evidence that it is increasingly significant. Second, while initial investment, mostly by state-owned companies, has often been destined for natural resource industries, over time, investment has been spreading to agriculture, manufacturing, and service industries (e.g., telecommunications). Third, FDI from BRICs flows into many non resource-rich countries in LICs and plays a significant role in growth in those countries.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by International Monetary Fund in its series IMF Working Papers with number 11/178.
Date of creation: 01 Jul 2011
Date of revision:
Contact details of provider:
Postal: International Monetary Fund, Washington, DC USA
Phone: (202) 623-7000
Fax: (202) 623-4661
Web page: http://www.imf.org/external/pubind.htm
More information through EDIRC
This paper has been announced in the following NEP Reports:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Humphreys, David, 2008. "World Investment Report: Transnational Corporations, Extractive Industries and Development, United Nations Conference on Trade and Development (UNCTAD), Geneva, (2007). 323 pp., $90 (developed countri," Resources Policy, Elsevier, vol. 33(3), pages 175-177, September.
- Jing Gu, 2009. "China's Private Enterprises in Africa and the Implications for African Development," The European Journal of Development Research, Palgrave Macmillan, vol. 21(4), pages 570-587, September.
- Darby, Julia & Desbordes, Rodolphe & Wooton, Ian, 2009.
"Does Public Governance Always Matter? How Experience of Poor Institutional Quality Influences FDI to the South,"
CEPR Discussion Papers
7533, C.E.P.R. Discussion Papers.
- Julia Darby & Rodolphe Desbordes & Ian Wooton, 2010. "Does Public Governance always Matter? How Experience of Poor Institutional Quality Influences FDI to the South," CESifo Working Paper Series 3290, CESifo Group Munich.
- Julia Darby & Rodolphe Desbordes & Ian Wooton, 2010. "Does Public Governance Always Matter? How Experience of Poor Institutional Quality Influences FDI to the South," Working Papers 1003, University of Strathclyde Business School, Department of Economics.
- Darby, Julia & Desbordes, Rodolphe & Wooton, Ian, 2010. "Does Public Governance Always Matter? How Experience of Poor Institutional Quality Influences FDI to the South," SIRE Discussion Papers 2010-14, Scottish Institute for Research in Economics (SIRE).
- International Monetary Fund, 2010. "FDI Flows to Low-Income Countries: Global Drivers and Growth Implications," IMF Working Papers 10/132, International Monetary Fund.
- Giles Mohan & May Tan-Mullins, 2009. "Chinese Migrants in Africa as New Agents of Development? An Analytical Framework," The European Journal of Development Research, Palgrave Macmillan, vol. 21(4), pages 588-605, September.
- Theodore H. Moran & Edward M. Graham & Magnus Blomstrom, 2005. "Does Foreign Direct Investment Promote Development?," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 3810.
- Raphael Kaplinsky & Mike Morris, 2009. "Chinese FDI in Sub-Saharan Africa: Engaging with Large Dragons," The European Journal of Development Research, Palgrave Macmillan, vol. 21(4), pages 551-569, September.
- Anupam Basu & Krishna Srinivasan, 2002. "Foreign Direct Investment in Africa--Some Case Studies," IMF Working Papers 02/61, International Monetary Fund.
- Peter Kragelund, 2009. "Part of the Disease Or Part of the Cure? Chinese Investments in the Zambian Mining and Construction Sectors," The European Journal of Development Research, Palgrave Macmillan, vol. 21(4), pages 644-661, September.
- Nicole Alice Sindzingre, 2011. "The Rise of China in Sub-Saharan Africa: its Ambiguous Economic Impacts," Post-Print halshs-00636022, HAL.
- Alessia Amighini & Marco Sanfilippo, 2013. "Impact of South-South FDI and trade on the export upgrading of African economies," RSCAS Working Papers 2013/75, European University Institute.
- Lee Robinson & Alice Nicole Sindzingre, 2012. "China’s Ambiguous Impacts on Commodity-Dependent Countries: the Example of Sub-Saharan Africa (with a Focus on Zambia)," EconomiX Working Papers 2012-39, University of Paris West - Nanterre la Défense, EconomiX.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jim Beardow) or (Hassan Zaidi).
If references are entirely missing, you can add them using this form.