Undercurrents in the global economy: repositioning the other half of the world-system in global investment flows (konferenssiabstrakti)

Abstract

<p>While the economic crisis has been hitting core countries in the world economy, a number of economies in the Global South have grown in importance in global investment networks. Using global FDI data, the paper traces patterns of FDI flows within the global South over the past 10 years. It examines the location factors influencing the decisions of MNEs to invest in countries of the Global South. The analysis differentiates between countries with the same and with different positions in the global economy, or countries belonging to ‘core’, ‘semi-periphery’, or ‘periphery’ à la Wallerstein. The study contributes to our understanding of the changing investment trends in the Global South. It shows that, in addition to the conventional investments from core economies, investments in the South now also includes a growing number of investments from Southern countries in similar economic circumstances, entering global investment networks. It also shows that the<i> </i>specific factors attracting FDIs to the peripheries and semi-peripheries in the South differ according to the development stage of both economies, originating and receiving, the investments. This facilitates either the creation of complementarities in resources originating in countries that are in a similar position in the global economy; or, the imitation of activities or joining the networks of dominant players in specific businesses entailing a process of upgrading of assets and capabilities in the countries.</p>