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Foreign Direct Investment Acceleration

In a globalized world, countries compete fiercely to attract foreign direct investment (FDI). FDI flows jumped significantly in the last decade, reaching $1.5 trillion in 2013. Emerging markets are taking a rising share of these investments, reaching 50% of global FDI in 2013. They also represent a significant source of global FDI.

FDI contributes to a virtuous circle toward improving competitiveness. Directly and indirectly, it boosts economic activity through GDP, jobs, tax revenues, and export networks. It also has an overall positive impact on productivity. But a virtuous circle can also become a vicious one. .

A nation’s ability to attract, maintain, and accelerate FDI can have a profound impact on many aspects of the local economy. These include:

  • A boost in productive capital resulting in a higher output and more jobs
  • Improved access to previously unavailable export markets
  • New technologies and management skills

Through BCG’s FDI Acceleration solution, companies can tap into a network of experts with vast experience in FDI projects of all scopes and sizes worldwide. We help governments and companies:

  • Analyze and prioritize global FDI opportunities.
  • Understand the investor profiles of target countries.
  • Develop a thesis for prospective investors.
  • Develop a roadmap to attract target investors.
  • Build effective organizations and models to realize their FDI attraction potential.

Growth of Foreign Direct Investments

BCG’s Burak Tansan discusses the relationship between foreign direct investment and GDP—and the trends that will trigger an expected 10-11% growth per year.

Globalization
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