Foreign direct investments – international and interregional comparative analysis

Thursday, 17 March 2016: 4:20 PM
Jerzy Rozanski, Professor , Department of Business Management, University of Lodz, Faculty of Management, Lodz, Poland, Poland
The world economic crisis resulted in the foreign direct investments (FDI) relocation, not only in the scale of the whole world economy but in regional scale as well (European Union, North America, Russian Federation, South America, South – East Asia).

The main purpose of this article is to precise changes in capital flows in the field of FDI (greenfield investments especially) and merger and acquisition transactions.

This problem is analysed in two aspects:

-          new regional leaders in investment (countries that appeared to be more attractive to foreign investors nowadays than earlier),

-          new regional investors (countries who invest more abroad).

The analysis of changes in FDI flows should show:

-        changes in the value of FDI flows to each chosen country or region,

-        changes in the value of FDI flows from each chosen country or region,

-        changes in the relations between inflows and outflows of FDI for chosen country or region,

-        changes in the directions of FDI flows in the world economy.

The research confirmed that position of European Union countries in foreign direct investments inflows and outflows is becoming ever weaker, the role of BRIC countries (Brazil, Russian Federation, India, China) is increasing while the role of the USA is still important (especially as a foreign investments). At present China has a very strong position in FDI flows.

The role of european middle east countries as a place of investment and its possibilites to invest abroad is still very closely connected with European Union tendencies in this area because most foreign direct investments in these countries flows from other European Union countries.

There are many factors indicating that trends observed can be relatively constant.