> 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.
-You´re right. Small nations have very small maneuvering margins in the global economy. -But Japan and South Korea also restricted FDI and relied largely in local enterprises in the process of their development (althought SK has opened itself to FDI in the last 10 years), right? It is also true that SK recieved Huge amounts of external help in the first years (50-60´s), which, according to R. Rojas, amounted to more than 50% of overall investment. In these case, it is not surprising they didn´t need FDI... --- Outgoing mail is certified Virus Free. Checked by AVG anti-virus system (http://www.grisoft.com). Version: 6.0.558 / Virus Database: 350 - Release Date: 02/01/04