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New Voices in Investment: How Emerging Market Multinationals Decide Where, Why, and Why Not to Invest

Gonzalo Varela's picture

Emerging market multinationals (EMMs) have become increasingly salient players in global markets. In 2013, one out of every three dollars invested abroad originated from multinationals in emerging economies.

Up until now, we have had a limited understanding of the characteristics, motivations, and strategies of these firms. Why do EMMs decide to invest abroad? In which markets do they concentrate their investments and why? And how do their strategies and needs compare to those of traditional multinationals from developed countries?

In a book we will launch tomorrow at the World Bank, “New Voices in Investment,” we address these questions using a World Bank and UNIDO-funded survey of 713 firms from four emerging economies: Brazil, India, Korea, and South Africa.

Study: Liberalizing Foreign Investment in Services Boosts Manufacturing in Indonesia

Gonzalo Varela's picture

Rice sacks on a truck in Indonesia. Source: http://www.flickr.com/photos/ricephotos/6025129068/Sometimes trade policy works through unexpected channels. In the case of Indonesia, opening the services sector to foreign investment appears to be a way to significantly boost the productivity of domestic manufacturing firms, according to recent joint research from the World Bank’s Office in Indonesia and the International Trade Department. This finding has implications for governments around the world that have restricted foreign investment in services – such as transport, electricity and communications – that are vital to other productive sectors in the economy.