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:
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: