The state’s role is key to the success of emerging economies’ expanding investments. China’s example presents a case in point: comparing its policies with those of Brazil and Korea illustrates a consistent advantage among other emerging markets and global economies. Using five phases of development, we demonstrate how broad public policies and specific support measures affect expansion.
In the last 30 years, emerging economies have shifted towards less restrictive outward foreign direct investment policies. China is a remarkable example of the dramatic shift that occurred—from outright restriction to enthusiastic promotion of investments abroad. The Chinese government’s “Go Global” strategy set in motion a marked increase in outward investment by Chinese multinationals over the past 15 years. This strategy led to several specific measures and incentives aimed at facilitating investments abroad and promoting Chinese multinationals’ competitiveness abroad.
This note examines investment policies of three emerging market countries, comparing the policies of the powerhouse that is China with those of Brazil, the largest investor from Latin America, and Korea, the second biggest investor from Asia…NOTES 205_LOURDES CASANOVA & ANNE MIROUX_ANG
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