Will FDI be Resilient in this Crisis?
Although foreign direct investment (FDI)
flows have tended to remain resilient during previous
crises, they may not behave in a similar fashion during the
current crisis. Why? In past crises, the stability of FDI
flows was significantly associated with an increase in
mergers and acquisitions (M&A), reflecting
'fire-sale FDI'. In the present crisis, by
contrast, M&A activity decreased significantly in the
last quarter of 2008, and this trend may continue as long as
the global crisis constrain the purchasing ability of
foreign (acquiring) firms. These developments further
illustrate that the nature of the current crisis differs
considerably from previous ones, suggesting that certain key
lessons from past crisis lessons might not apply in the
current context.
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Bibliographic Details
| Main Authors: |
Calderon, Cesar,
Didier, Tatiana |
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| Language: | English |
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| Published: |
World Bank, Washington, DC
2009-01
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| Subjects: | ACCOUNTING,
BANK LENDING,
BUSINESS CYCLES,
CAPITAL FLOWS,
CAPITAL MARKETS,
DEVELOPING COUNTRIES,
DOMESTIC FIRMS,
EMERGING ECONOMIES,
EMERGING MARKET,
EMERGING MARKET COUNTRIES,
EMERGING MARKET ECONOMIES,
EMERGING MARKETS,
EQUITY FLOWS,
FDI,
FINANCIAL ACCOUNT,
FINANCIAL CRISES,
FINANCIAL CRISIS,
FINANCIAL FLOWS,
FINANCIAL RESOURCES,
FOREIGN ACQUISITIONS,
FOREIGN BUYERS,
FOREIGN DIRECT INVESTMENT,
FOREIGN DIRECT INVESTMENTS,
FOREIGN INVESTORS,
FOREIGN OWNERSHIP,
INTERNATIONAL FINANCE,
LIQUIDITY,
LIQUIDITY CONSTRAINTS,
LIQUIDITY CRISES,
LIQUIDITY CRISIS,
MERGER,
MERGERS,
NET CAPITAL,
NET CAPITAL FLOWS,
NET DEBT,
NET EQUITY,
NET EQUITY FLOWS,
NET FLOWS,
NET PORTFOLIO,
NET PORTFOLIO EQUITY,
NET PRIVATE,
NET PRIVATE DEBT,
PORTFOLIO,
PORTFOLIO EQUITY,
PRIVATE CAPITAL,
PRIVATE CAPITAL FLOWS,
PRIVATE DEBT,
PRIVATE DEBT FLOWS,
TRADE CREDIT,
TRANSPARENCY,
WORLD CAPITAL MARKETS, |
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| Online Access: | http://documents.worldbank.org/curated/en/2009/01/11954152/fdi-resilient-crisis
https://hdl.handle.net/10986/11000
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