How Policies Shape Foreign Direct Investment from Latin America to the European Union

Abstract

From the 2000s on, foreign direct investment (FDI) from emerging markets has increased significantly: as a consequence, emerging markets multinational corporations (MNC) have come of age. The rise of emerging markets MNC is but one manifestation of the process referred to by Angus Maddison as ‘shifting wealth’ in the world economy, whereby long-term global imbalances in current and capital accounts have increased the economic muscle and the political stature of a number of emerging countries and regions (OECD, 2010; Quah, 2011).