Developing Master Foreign Investment in 2013

Developing Master Foreign Investment in 2013



Developing countries are the main destination of international investment by the corporation in 2013 , for two consecutive years . The trend is predicted to happen this year , though this time the developing countries have to face slower growth , political uncertainty , and turmoil in their financial markets . The data are released United Nations Conference ( UN ) on Trade and Development or UNCTAD , on Tuesday .


The increase in foreign direct investment ( FDI ) in developing countries is a reflection of their rapid rate of growth after the global financial crisis of 2008. However , the motor of global economic growth seems to gravitate back to the developed countries . Foreign investors are now turning to it . There are signals , foreign investors are increasingly worried about the political and economic problems facing some major developing countries .

However, the director of investment and effort UNCTAD , James Zhan , estimates FDI flows to developing countries this year is not reduced . However , the rate of growth may be slowing , he said . The Wall Street Journal , Zhan predicts developing countries will still dominate FDI flows this year .

" Slowdown in growth is the greatest risk , while FDI flows to developed countries will recover slowly , " said Zhan .

Changing the flow of foreign capital from developed to developing countries since the 2008 financial crisis is drastic . The share of global FDI to developing countries such as Brazil , Russia , India , China , and South Africa rose nearly doubled since 2008. While the flow of capital to developed countries in 2013 recorded less than half of their total FDI in 2007 .

In 2013 , corporate FDI up 11 % to total $ 1.5 trillion , still lower than the highest pre - crisis FDI which amounted to about $ 2 trillion in 2007 . Foreign investment in developed countries rose 12 % to $ 576 billion or 39 % of total global FDI . Meanwhile , foreign investment in developing countries rose 6.2 % to a record high of $ 759 billion, ie 52 % of the total FDI . The rest of the foreign investment flowing into the " transition countries " such as Russia and other eastern European countries , so obviously UNCTAD .

UNCTAD estimates that global FDI flows rose to $ 1.6 trillion in 2014 and $ 1.8 trillion in 2015 . When compared to previous years , this time of uncertainty about the flow of FDI to developing countries whirls . South Africa , Turkey , Brazil , and India will hold elections this year , a source of anxiety for foreign companies regarding their investments .|ASWJ