The Role of South-South FDI in the Economies of Developing Asia

Publication | September 2011

This paper describes the size of South-South foreign direct investment (FDI) in developing East Asia and the trends in it, and the characteristics of the investing countries and the investments themselves. It summarizes findings about industrial composition of FDI; effects on host countries; and effects on host-country firms' productivity, wages, and employment. The analysis shows that the increased presence of South FDI in East and Southeast Asia might have different effects on host economies from those of FDI from the North.

Contents 

  • Abstract
  • Introduction
  • Trends in South-South FDI
  • How do North-South and South-South FDI in Asia Differ?
  • Summary and Concluding Remarks
  • References