FDI and the Britishness of the British economy

Foreign Direct Investment (FDI) is the most visible aspect of globalisation. It has grown, with developing countries first taking a majority share of the world’s capital inflows, and later seen developing countries begin to originate capital outflows. Meanwhile, the foreign acquisition of British companies is now seen as one of the reasons why a rising share of income generated in the UK goes abroad.

QUESTIONS

1) How have the motives for FDI changed since the classic period that preceded the First World War?
2) How much more integrated has the world economy become through FDI?
3) What are the main geographical shifts in FDI?
4) How different is Britain from other major recipients of FDI?
5) Is foreign ownership of British assets a problem?

READINGS

Overview

UNCTAD, World Investment Report 2014
Elsabe Loots and Alain Kabundi, ‘Foreign direct investment to Africa: trends, dynamics and challenges’,  South African Journal of Economic and Management Sciences. vol.15 n.2, January 2012 (first two sections in particular)

Who now makes and who now receives FDI?

FDI inward stock as a percentage of gross domestic product, 1990-2012 (Excel format)
and
FDI outward stock as a percentage of gross domestic product, 1990-2102 (Excel format)

FDI and gross domestic capital formation

FDI as percentage of Gross Domestic Capital Formation (Excel format, see highlighted entries)

China’s FDI and overseas acquisitions

The New Complexity of Chinese Outbound Investment, Thilo Hanemann, Rhodium Group

China’s Global Outbound M&A in 2014Thilo Hanemann and Cassie Gao, Rhodium Group

Inbound FDI to the US
Foreign Direct Investment in the United States, Organisation for International Investment

FDI and R&D

The Internationalisation of R&D and the Knowledge Production Function, María García-Vega, Patricia Hofmann and Richard Kneller

The Rise of International Co-invention, Lee Branstetter, Guangwei Li and Francisco Veloso

Globalization and Knowledge Spillover: International Direct Investment, Exports and Patents, Chia-Lin Chang, Sung-Po Chen and Michael McAleer

Supporters and critics of foreign ownership in the UK
Selling UK Plc is the only way we can avoid a full blown crisis, Telegraph, Allister Heath

We’re rich, and we’re better off than the Yanks, The Times

Foreign ownership of British assets has damaged our economy, OpenDemocracy

SPEAKER

James Woudhuysen