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Saturday, November 13, 2010

China's FDI (from The Economist)

CHINA'S share of the world's foreign direct investment (FDI) has risen from 1% in 1991 to just under 6% in 2009. FDI flows tend to go hand in hand with economic clout. Britain was a big exporter of capital in the mid-19th century. America played this role for part of the 20th century: its share of FDI peaked at 50% in 1967 but has since declined to 23%. China's share will no doubt keep growing. But it seems unlikely that it will be as generous an exporter of capital as Britain and America have been, at least in the medium term.

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