Slides for the roundtable

Kalman Kalotay UNCTAD

’Emerging Multinationals’: Outward Foreign Direct Investment from Emerging

and Developing Economies

10 October 2008, Copenhagen Business School

Not just the BRICS: Share of emerging economies* in world FDI stock, 1990–

2007 (%)…*defined as developing and transition economies

0

2

4

6

8

10

12

14

16

18

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

All emerging economies

BRICS

…but difference is less pronounced if ‘emerging economies’ are defined and

middle and low-income countries

0

1

2

3

4

5

6

7

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

Middle and low-income economies

BRICS

Difference between ‘developing and transition’ economies and ‘middle and

low-income’ countries

‘Developing and transition’ includes high-income economies, namely:

Asian tigers: Hong Kong, China Korea, Republic of Singapore Taiwan Province of China

High-income oil exporters: Bahrain Brunei Darussalam Kuwait Qatar Trinidad and Tobago United Arab Emirates

Offshore financial centres: Aruba Barbados British Virgin Islands Cayman Islands Netherlands Antilles

‘Middle and low-income’ excludes all high-income economies but includes:

Middle-income new EU members: Bulgaria Hungary Latvia Lithuania Poland Romania Slovakia

And still excludes high-income ‘emerging economies’ such as: Czech Republic Estonia Israel Slovenia

Measurement of the share of BRICS partly depends on how you define

‘emerging’

Potential perceptions of emerging-economy investors in developed

host economies

Type of investor

Financial resources

Techno-logy

Employ-ment & skills

Environ-mental impact

Social responsi-bility

Transpa-rency

National security

Privately owned

State-owned / Govern-ment-related

Sove-reign wealth fund

The importance of the home country fur future FDI theory

Whither the home country? (Ms Tolentino)

or Towards an OLI-H paradigm?