GLOBAL FDI FLOWS UNDER THE PRESSURE OF FINANCIAL CRISIS
GLOBAL FDI FLOWS UNDER THE PRESSURE OF FINANCIAL CRISIS

Summary/Abstract: The present day international crisis is raising major concerns about the future of the world economic outlook, especially as it relates to international investment. In the short term, the negative impact of the present economic recession on global FDI prospects seems to be the dominant one. Medium-term FDI prospects are more difficult to assess, due to the exceptional magnitude of the present crisis and to the fact that it could lead to major structural changes in the world economy. Nevertheless, there are some favourable factors for FDI growth (such as investment opportunities generated by low asset prices and industry restructuring, large amounts of financial resources available in emerging countries, quick expansion of new activities and industries) and some of them are even a consequence of the crisis itself. The exact moment date of this upward change depend on a series of uncertain factors such as the process of economic and financial recovery, the efficiency of public policy in addressing the causes of the present crisis, the return of investor confidence and the ability to prevent protectionist tendencies.

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