Challenge for Overseas Expansion

Abstract

Outward foreign direct investment (FDI) from developing countries is increasing.¹ According to UNCTAD (2001, 2012), the ratio of outward FDI from developing countries to total outward FDI in the world was just 8.7 percent in 2000, but rapidly rose to 26.9 percent in 2011. Traditionally, FDI investors came exclusively from developed countries, but this scenario changed radically in just a decade—at present a sizable number of FDI investors come from developing countries. This has made it even more important for us to understand the characteristics of outward FDI from developing countries at the moment.