Foreign Direct Investment in Emerging Market Countries

The purpose of this chapter is to suggest plausible patterns and trends in foreign direct investment flows to ”emerging economies” during the remainder of the 19905.1 As a basis for developing the forecasts, the chapter examines data on FDI flows during previous decades, especially during the 1980s. Most of the analysis is in terms of aggregate national-level FDI flows, but there is also some industry-level data. The analysis does not develop a formal econometric forecasting model, though it does utilize the results of previous theoretical and empirical studies of the determinants of FDI. The analysis includes economic and political determinants of FDI-at both the macro-level and micro-level. The analytic approach is thus interdisciplinary and multi-level.