The Rising Concentration of Foreign Direct Investment
Using two decades of granular data on foreign direct investments, this study shows a consistent global rise in the concentration of cross-border investments within fewer multinational firms. This concentration is most prominent in developing economies, reaching record highs in recent years. Structural shifts into services do not stand out as the primary driver of variation in investment concentration across countries and over time. Instead, concentration has grown significantly more in destinations facing high economic uncertainty.
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| Main Authors: | , , |
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| Format: | Working Paper biblioteca |
| Language: | English en_US |
| Published: |
Washington, DC: World Bank
2024-06-24
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| Subjects: | FOREIGN DIRECT INVESTMENT (FDI), CONCENTRATION, DEVELOPMENT, UNCERTAINTY, ECONOMIC DEVELOPMENT, INDUSTRIAL ORGANIZATION AND MACROECONOMICS, TRADE POLICY, DECENT WORK AND ECONOMIC GROWTH, SDG 8, INDUSTRY, INNOVATION AND INFRASTRUCTURE, SDG 9, |
| Online Access: | http://documents.worldbank.org/curated/en/099414106242431322/IDU1e54dc5941f94514f8e1ad111ba1e6ee0513d https://hdl.handle.net/10986/41771 |
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| Summary: | Using two decades of granular data on
foreign direct investments, this study shows a consistent
global rise in the concentration of cross-border investments
within fewer multinational firms. This concentration is most
prominent in developing economies, reaching record highs in
recent years. Structural shifts into services do not stand
out as the primary driver of variation in investment
concentration across countries and over time. Instead,
concentration has grown significantly more in destinations
facing high economic uncertainty. |
|---|