Nothing Special   »   [go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/p/imf/imfwpa/2011-178.html
   My bibliography  Save this paper

FDI from BRICs to LICs: Emerging Growth Driver?

Author

Listed:
  • Mr. Montfort Mlachila
  • Ms. Misa Takebe
Abstract
Despite 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.

Suggested Citation

  • Mr. Montfort Mlachila & Ms. Misa Takebe, 2011. "FDI from BRICs to LICs: Emerging Growth Driver?," IMF Working Papers 2011/178, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2011/178
    as

    Download full text from publisher

    File URL: http://www.imf.org/external/pubs/cat/longres.aspx?sk=25100
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Oyejide Titiloye Ademola & Abiodun S Bankole & Adeolu O Adewuyi, 2009. "China–Africa Trade Relations: Insights from AERC Scoping Studies," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 21(4), pages 485-505, September.
    2. Wooton, Ian & Darby, Julia & Desbordes, Rodolphe, 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.
    3. Mr. Anupam Basu & Mr. Krishna Srinivasan, 2002. "Foreign Direct Investment in Africa—Some Case Studies," IMF Working Papers 2002/061, International Monetary Fund.
    4. 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, April.
    5. Raphael Kaplinsky & Mike Morris, 2009. "Chinese FDI in Sub-Saharan Africa: Engaging with Large Dragons," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 21(4), pages 551-569, September.
    6. 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;European Association of Development Research and Training Institutes (EADI), vol. 21(4), pages 588-605, September.
    7. 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;European Association of Development Research and Training Institutes (EADI), vol. 21(4), pages 644-661, September.
    8. International Monetary Fund, 2010. "FDI Flows to Low-Income Countries: Global Drivers and Growth Implications," IMF Working Papers 2010/132, International Monetary Fund.
    9. Jing Gu, 2009. "China's Private Enterprises in Africa and the Implications for African Development," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 21(4), pages 570-587, September.
    10. 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.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Alice Nicole Sindzingre, 2011. "The Rise of China in Sub-Saharan Africa: its Ambiguous Economic Impacts," Post-Print halshs-00636022, HAL.
    2. Irina Kosorukova & Alexander Voronov & Ekaterina Mirgorod & Svetlana Lupacheva & Olga Trubetskaya, 2023. "BRICS Countries in a Period of Uncertainty and Turbulence: Opportunities for the Formation of a New Configuration of the Global Economy," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 7, pages 51-76.
    3. Amighini, Alessia & Sanfilippo, Marco, 2014. "Impact of South–South FDI and Trade on the Export Upgrading of African Economies," World Development, Elsevier, vol. 64(C), pages 1-17.
    4. Nunnenkamp, Peter & Sosa Andrés, Maximiliano & Vadlamannati, Krishna Chaitanya & Waldkirch, Andreas, 2012. "What drives India's outward FDI?," Kiel Working Papers 1800, Kiel Institute for the World Economy (IfW Kiel).
    5. Christian Milelli & Alice Nicole Sindzingre, 2013. "Chinese Outward Foreign Direct Investment in Developed and Developing Countries: Converging Characteristics?," Post-Print hal-01411752, HAL.
    6. Vandana Chandra & Justin Yifu Lin & Yan Wang, 2013. "Leading Dragon Phenomenon: New Opportunities for Catch-up in Low-Income Countries," Asian Development Review, MIT Press, vol. 30(1), pages 52-84, March.
    7. Ekor, Maxwell & Adeniyi, Oluwatosin & Saka, Jimoh, 2015. "Trade Intensity Analysis of South Africa-BRIC Economic Relations," MPRA Paper 82632, University Library of Munich, Germany.
    8. 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)," Working Papers hal-04141046, HAL.
    9. Graciana del Castillo, 2012. "Aid, Employment and Inclusive Growth in Conflict-Affected Countries: Policy Recommendations for Liberia," WIDER Working Paper Series wp-2012-047, World Institute for Development Economic Research (UNU-WIDER).
    10. Ndambendia, Houdou, 2015. "Africa trade and investment with BRIC nations in a changing economic landscape: the role of China," MPRA Paper 71675, University Library of Munich, Germany.
    11. del Castillo, Graciana, 2012. "Aid, Employment and Inclusive Growth in Conflict-Affected Countries: Policy Recommendations for Liberia," WIDER Working Paper Series 047, World Institute for Development Economic Research (UNU-WIDER).
    12. Biyase Mduduzi & Rooderick September, 2018. "Determinants of FDI in BRICS Countries: Panel Data Approach," Studia Universitatis Babeș-Bolyai Oeconomica, Sciendo, vol. 63(2), pages 35-48, August.
    13. repec:unu:wpaper:wp2012-47 is not listed on IDEAS
    14. Pal, Sarmistha, 2013. "Corruption, Networking and Foreign Ownership: Recent Evidence from CEE Countries," IZA Discussion Papers 7636, Institute of Labor Economics (IZA).
    15. Alessia Amighini & Chiara Franco, 2012. "Agglomeration Effects in South-South FDI," DEGIT Conference Papers c017_032, DEGIT, Dynamics, Economic Growth, and International Trade.
    16. Khanindra Ch. Das, 2013. "Home Country Determinants of Outward FDI from Developing Countries," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 7(1), pages 93-116, February.
    17. Hu, Dengfeng & You, Kefei & Esiyok, Bulent, 2021. "Foreign direct investment among developing markets and its technological impact on host: Evidence from spatial analysis of Chinese investment in Africa," Technological Forecasting and Social Change, Elsevier, vol. 166(C).
    18. Peter Nunnenkamp & Maximiliano Sosa Andrés & Krishna Chaitanya Vadlamannati & Andreas Waldkirch, 2012. "What Drives India’s Outward FDI?," South Asian Journal of Macroeconomics and Public Finance, , vol. 1(2), pages 245-279, December.
    19. Sasidaran Gopalan & Ramkishen S. Rajan, 2016. "Revisiting Bilateral Foreign Direct Investment Inflows into BRIC Economies," Global Policy, London School of Economics and Political Science, vol. 7(4), pages 510-520, November.
    20. 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 Nanterre, EconomiX.
    21. Khan, Seefat-E-Rabbi & Asteriou, Dimitrios & Jefferies, Claudia, 2023. "Can FDI explain the growth disparity of the BRIC and the non-BRIC countries? Theoretical and empirical evidence from panel growth regressions," Economic Modelling, Elsevier, vol. 124(C).
    22. Animashaun, Jubril Olayinka & Ojehomon, Vivian EbihomonTitilayo & Muhammad-Lawal, Abdulazeez & Amolegbe, Khadijah Busola, 2015. "Between Foreign Direct Investment (Fdi) And Outsourcing: Which Policy Strategy Will Enhance The Competitiveness Of The Nigerian Rice Sector?," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 3(2), pages 1-15, April.
    23. Kwame Acheampong, 2019. "The interaction effect of foreign capital inflows and financial development on economic welfare in sub-Saharan Africa," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 5(1), pages 1-33, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Asongu, Simplice A, 2014. "Sino-African relations: a review and reconciliation of dominant schools of thought," MPRA Paper 66597, University Library of Munich, Germany.
    2. Asongu, Simplice A, 2014. "A Development Consensus reconciling the Beijing Model and Washington Consensus: Views and Agenda," MPRA Paper 58757, University Library of Munich, Germany.
    3. Simplice A. Asongu & Paul N. Acha-Anyi, 2020. "A survey on the Washington Consensus and the Beijing Model: reconciling development perspectives," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 67(2), pages 111-129, June.
    4. Simplice Asongu & John Ssozi, 2016. "Sino-African Relations: Some Solutions and Strategies to the Policy Syndromes," Journal of African Business, Taylor & Francis Journals, vol. 17(1), pages 33-51, January.
    5. Broich, T. & Szirmai, A., 2014. "China's economic embrace of Africa: An international comparative perspective," MERIT Working Papers 2014-049, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    6. Simplice Asongu, 2016. "Reinventing Foreign Aid For Inclusive And Sustainable Development: Kuznets, Piketty And The Great Policy Reversal," Journal of Economic Surveys, Wiley Blackwell, vol. 30(4), pages 736-755, September.
    7. Narula, Rajneesh, 2010. "Much ado about nothing, or sirens of a brave new world?: MNE activity from developing countries and its significance for development," MERIT Working Papers 2010-021, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    8. Asongu, Simplice, 2014. "Reinventing foreign aid for inclusive and sustainable development: a survey," MPRA Paper 65300, University Library of Munich, Germany.
    9. Fu, Xiaolan & Buckley, Peter J. & Fu, Xiaoqing Maggie, 2020. "The Growth Impact of Chinese Direct Investment on Host Developing Countries," International Business Review, Elsevier, vol. 29(2).
    10. Koku, P. Sergius & Farha, Allam Abu, 2020. "Other sources of FDIs in Sub-Saharan Africa: The case of Gulf Cooperation Council states," Journal of Business Research, Elsevier, vol. 119(C), pages 619-626.
    11. Chen, Yunnan & Sun, Irene Yuan & Ukaejiofo, Rex Uzonna & Xiaoyang, Tang & Bräutigam, Deborah, 2016. "Learning from China?: Manufacturing, investment, and technology transfer in Nigeria:," IFPRI discussion papers 1565, International Food Policy Research Institute (IFPRI).
    12. Matthias Busse & Ceren Erdogan & Henning Mühlen, 2016. "China's Impact on Africa – The Role of Trade, FDI and Aid," Kyklos, Wiley Blackwell, vol. 69(2), pages 228-262, May.
    13. Kohnert, Dirk, 2010. "Are the Chinese in Africa more innovative than the Africans ? Comparing Chinese and Nigerian entrepreneurial migrants‘ Cultures of Innovation," OSF Preprints tr6b8, Center for Open Science.
    14. 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 Nanterre, EconomiX.
    15. Kohnert, Dirk, 2010. "Drivers of change or cut-throat competitors? Challenging Cultures of Innovation of Chinese and Nigerian migrant entrepreneurs in West Africa," MPRA Paper 23132, University Library of Munich, Germany.
    16. Alice Nicole Sindzingre, 2011. "The Rise of China in Sub-Saharan Africa: its Ambiguous Economic Impacts," Post-Print halshs-00636022, HAL.
    17. Carolyn Chisadza & Manoel Bittencourt, 2016. "Globalisation and Conflict: Evidence from sub-Saharan Africa," Working Papers 634, Economic Research Southern Africa.
    18. Tang, Xiaoyang, 2017. "Chinese investment in Ghana’s manufacturing sector," IFPRI discussion papers 1628, International Food Policy Research Institute (IFPRI).
    19. Ndambendia, Houdou, 2015. "Africa trade and investment with BRIC nations in a changing economic landscape: the role of China," MPRA Paper 71675, University Library of Munich, Germany.
    20. Didenko Alexander & Egorova Tatiana, 2014. "Innovations as factor of absorptive capacity of fdi spillovers across regions of Russian Federation," Review of Business and Economics Studies, CyberLeninka;Федеральное государственное образовательное бюджетное учреждение высшего профессионального образования «Финансовый университет при Правительстве Российской Федерации» (Финансовый университет), issue 3, pages 75-85.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:imf:imfwpa:2011/178. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Akshay Modi (email available below). General contact details of provider: https://edirc.repec.org/data/imfffus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.