> Good for you that are achieving high growth rates with so few FDI. Brazil,
> despite this massive inflows of FDI, had the following growth rates from
> 1996-2000 (approximate)
>
> 1996-2,5% 1997-3,6% 1998-0,4% 1999-1% 2000-4,5%
> Far from an economic boom, right? My point is that FDI is more or less
like
> external loans. Can provide a boost to your economic development if
properly
> managed, but simply cannot replace local capital accumulation, and results
> in significant extra expenses latter as profits are repatriated.
Yes. I agree totally. This is particularly true for large nation-states like Brazil, China and Russia.
>The worst
> possible way to deal with FDI is selling local firms (private of public)
as
> you get all the disadvantages of FDI withouth anything being added to your
> productive capacity (privatization, btw, was one of the main sources of
FDI
> in Brazil in the mentioned period).
Yes. I agree.
Ulhas