The Global Pattern of Foreign Direct Investment in Recent Years

Abstract

Foreign direct investment (FDI) has a high impact on income and revenue generation to various countries in developing and developed countries. Some countries via their companies used FDI and Foreign Portfolio Investment (FPI) to advanced and control flow of investment to their mother countries. Similarly, global pattern of foreign direct investment has shifted from developed countries to developing countries with more inflow to countries of Brazil, Russia, India, China and South Africa (BRICS). Despite domination of FDI by triangle of trade (TRIAD) countries of America, European Union, Japan and United Kingdom as countries with higher inflow of foreign direct investments. Consequently, most of the countries among BRICS and TRIADS uses Tax haven for tax evasion and manipulations. Capital flight is another advantage used by United States of America to have more FDI due to power of its currency. Within last decade a significant shift FDI to developing countries has indicates change in global pattern in FDI. African countries suffer more from capital flight due to lax custom and border regulation and laws.