Chapter

The Liberalization of Capital Outflows in China, India, Brazil, and South Africa: What Opportunities for Other Developing Countries?

Ricardo Gottschalk and Cecilia Azevedo Sodré

in Southern Engines of Global Growth

Published in print April 2010 | ISBN: 9780199580606
Published online May 2010 | e-ISBN: 9780191723353 | DOI: http://dx.doi.org/10.1093/acprof:oso/9780199580606.003.0007

Series: WIDER Studies in Development Economics

The Liberalization of Capital Outflows in China, India, Brazil, and South Africa: What Opportunities for Other Developing Countries?

Show Summary Details

Preview

This chapter examines the implications of the liberalization of capital outflows in China, India, Brazil, and South Africa (CIBS) for other developing countries. It focuses on their prospects of attracting not only foreign direct investment (FDI), but also portfolio capital flows from CIBS. To inform the discussion, two steps are taken: first, in order to identify the type of capital flows that might come from CIBS, the chapter briefly describes capital account liberalization measures undertaken by CIBS to date and future intended liberalization. Second, it maps geographic distribution of outward FDI and foreign portfolio investment in the recent past, which are taken as possible predictors of future flows. The chapter shows that portfolio investment goes mainly to OECD countries and offshore financial centres, and only a small share to developing countries. But, within developing countries, CIBS' neighbouring countries have shown a greater ability to attract this type of investment, compared with other developing countries.

Keywords: capital account liberalization; developing countries; direction of capital flows; foreign direct investment; portfolio capital flows; south—south capital flows

Chapter.  9261 words.  Illustrated.

Subjects: Economic Development and Growth

Full text: subscription required

How to subscribe Recommend to my Librarian

Buy this work at Oxford University Press »

Users without a subscription are not able to see the full content. Please, subscribe or login to access all content.