New Voices in Investment : A Survey of Investors from Emerging Countries
One out of every three dollars invested abroad in 2012 was originated in multinationals from developing countries. This study sheds light on the characteristics, motivations, strategies, and needs of emerging market investors. By including informat...
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| Language: | English en_US |
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Washington, DC: World Bank
2014
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| Online Access: | http://documents.worldbank.org/curated/en/2014/11/20459015/new-voices-investment-survey-investors-emerging-countries http://hdl.handle.net/10986/20605 |
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okr-10986-20605 |
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oai_dc |
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Digital Repository |
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Foreign Institution |
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Digital Repositories |
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World Bank Open Knowledge Repository |
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World Bank |
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English en_US |
| topic |
ACCESS TO FOREIGN MARKETS ACCESS TO INFORMATION ACCOUNTING ADVANCED ECONOMIES ARBITRATION BANK OFFICE BARRIER BARRIERS TO INVESTMENT BENCHMARK BENCHMARKING BINDING CONSTRAINTS BUSINESS CLIMATE BUSINESS ENVIRONMENT BUSINESS OPPORTUNITIES BUSINESS REGULATIONS CAPITAL FLOWS CAPITAL FORMATION COMMITMENT DEVICES COMPANY COMPETITIVE ADVANTAGE COMPETITIVE ADVANTAGES COMPETITIVENESS COMPETITORS COUNTRY DUMMY COUNTRY MARKET DECISION MAKING DEMOCRACY DEVELOPING COUNTRIES DEVELOPING COUNTRY DEVELOPING ECONOMIES DEVELOPING MARKETS DEVELOPMENT PATH DIRECT INVESTMENTS DOMESTIC CAPITAL DOMESTIC COMPETITION DOMESTIC MARKET DOMESTIC MARKETS DUMMY VARIABLE DUMMY VARIABLES ECONOMIC AGREEMENTS ECONOMIES OF SCALE EMERGING ECONOMIES EMERGING MARKETS EMERGING-MARKET EMPLOYMENT EPZ EQUIPMENT EXPECTED RETURNS EXPORT PROCESSING ZONE EXPORT PROCESSING ZONES EXPOSURE EXTERNAL FINANCE FINANCE CORPORATION FINANCIAL SERVICES FIRM SIZE FOREIGN ASSETS FOREIGN DIRECT INVESTMENT FOREIGN FIRMS FOREIGN INVESTMENT FOREIGN INVESTMENTS FOREIGN INVESTOR FOREIGN INVESTORS FOREIGN MARKETS FOREIGN SALES GDP GLOBAL ECONOMY GLOBAL GROSS DOMESTIC PRODUCT GLOBAL INVESTMENT GLOBAL INVESTORS GLOBAL MARKETS GLOBALIZATION GOVERNMENT INVESTMENT GOVERNMENT POLICIES GROSS DOMESTIC PRODUCT GROSS DOMESTIC PRODUCT PER CAPITA GROWTH RATE HOLDING HOME COUNTRY HOME MARKETS HOST COUNTRIES HOST COUNTRY HOST ECONOMY HOST GOVERNMENTS INCOME INFORMATION ASYMMETRIES INFORMATION TECHNOLOGY INFORMATIONAL ASYMMETRIES INSTITUTIONAL ENVIRONMENT INSTRUMENT INSURANCE INTANGIBLE INTERNATIONAL BANK INTERNATIONAL COMPETITION INTERNATIONAL DEVELOPMENT INTERNATIONAL ECONOMICS INTERNATIONAL FINANCE INTERNATIONAL FIRMS INTERNATIONAL INVESTMENTS INTERNATIONAL TRADE INVESTING INVESTMENT ACTIVITIES INVESTMENT AGREEMENTS INVESTMENT CLIMATE INVESTMENT CLIMATES INVESTMENT CONTRACTS INVESTMENT DECISIONS INVESTMENT FLOWS INVESTMENT MARKET INVESTMENT OPPORTUNITIES INVESTMENT PLANS INVESTMENT POLICIES INVESTMENT POLICY INVESTMENT PROCESS INVESTMENT PROMOTION INVESTMENT STRATEGY JOINT VENTURE JOINT VENTURE PARTNERS JOINT VENTURES LABOR MARKETS LEGAL ENVIRONMENT LEGAL FRAMEWORK LESS DEVELOPED ECONOMIES LIBERALIZATION LICENSING LOCAL GOVERNMENT MACROECONOMIC INSTABILITY MACROECONOMIC STABILITY MANUFACTURERS MANUFACTURING ESTABLISHMENTS MARKET ACCESS MARKET CONDITIONS MARKET EXPANSION MARKET FAILURES MARKET INFORMATION MARKET INVESTORS MARKET SIZE MERGERS MULTINATIONAL MULTINATIONAL CORPORATIONS MULTINATIONALS NATIONAL INVESTMENT NATURAL RESOURCE NATURAL RESOURCES NEW MARKETS OPPORTUNITIES FOR INVESTORS OPPORTUNITY COST ORGANIZATIONAL STRUCTURE OWNERSHIP STRUCTURE PARTICULAR COUNTRY PARTY PATENTS POLITICAL ECONOMY POLITICAL RISK POLITICAL STABILITY POTENTIAL INVESTOR POTENTIAL INVESTORS PRIVATE SECTOR DEVELOPMENT PRODUCTION COSTS PROFITABILITY PUBLIC FINANCE REGIONAL TRADE REGRESSION ANALYSIS REGULATORY ENVIRONMENT REGULATORY FRAMEWORK RETURNS RISK OF EXPROPRIATION SETTLEMENT SMALL FIRMS SOCIAL NETWORKS STOCKS SUPPLIERS TAX TAX INCENTIVES TAXATION TECHNOLOGY TRANSFERS TNC TRADING TRANSACTION COSTS TRANSPARENCY TREATIES TREATY TURNOVER WAGES WORLD DEVELOPMENT INDICATORS |
| spellingShingle |
ACCESS TO FOREIGN MARKETS ACCESS TO INFORMATION ACCOUNTING ADVANCED ECONOMIES ARBITRATION BANK OFFICE BARRIER BARRIERS TO INVESTMENT BENCHMARK BENCHMARKING BINDING CONSTRAINTS BUSINESS CLIMATE BUSINESS ENVIRONMENT BUSINESS OPPORTUNITIES BUSINESS REGULATIONS CAPITAL FLOWS CAPITAL FORMATION COMMITMENT DEVICES COMPANY COMPETITIVE ADVANTAGE COMPETITIVE ADVANTAGES COMPETITIVENESS COMPETITORS COUNTRY DUMMY COUNTRY MARKET DECISION MAKING DEMOCRACY DEVELOPING COUNTRIES DEVELOPING COUNTRY DEVELOPING ECONOMIES DEVELOPING MARKETS DEVELOPMENT PATH DIRECT INVESTMENTS DOMESTIC CAPITAL DOMESTIC COMPETITION DOMESTIC MARKET DOMESTIC MARKETS DUMMY VARIABLE DUMMY VARIABLES ECONOMIC AGREEMENTS ECONOMIES OF SCALE EMERGING ECONOMIES EMERGING MARKETS EMERGING-MARKET EMPLOYMENT EPZ EQUIPMENT EXPECTED RETURNS EXPORT PROCESSING ZONE EXPORT PROCESSING ZONES EXPOSURE EXTERNAL FINANCE FINANCE CORPORATION FINANCIAL SERVICES FIRM SIZE FOREIGN ASSETS FOREIGN DIRECT INVESTMENT FOREIGN FIRMS FOREIGN INVESTMENT FOREIGN INVESTMENTS FOREIGN INVESTOR FOREIGN INVESTORS FOREIGN MARKETS FOREIGN SALES GDP GLOBAL ECONOMY GLOBAL GROSS DOMESTIC PRODUCT GLOBAL INVESTMENT GLOBAL INVESTORS GLOBAL MARKETS GLOBALIZATION GOVERNMENT INVESTMENT GOVERNMENT POLICIES GROSS DOMESTIC PRODUCT GROSS DOMESTIC PRODUCT PER CAPITA GROWTH RATE HOLDING HOME COUNTRY HOME MARKETS HOST COUNTRIES HOST COUNTRY HOST ECONOMY HOST GOVERNMENTS INCOME INFORMATION ASYMMETRIES INFORMATION TECHNOLOGY INFORMATIONAL ASYMMETRIES INSTITUTIONAL ENVIRONMENT INSTRUMENT INSURANCE INTANGIBLE INTERNATIONAL BANK INTERNATIONAL COMPETITION INTERNATIONAL DEVELOPMENT INTERNATIONAL ECONOMICS INTERNATIONAL FINANCE INTERNATIONAL FIRMS INTERNATIONAL INVESTMENTS INTERNATIONAL TRADE INVESTING INVESTMENT ACTIVITIES INVESTMENT AGREEMENTS INVESTMENT CLIMATE INVESTMENT CLIMATES INVESTMENT CONTRACTS INVESTMENT DECISIONS INVESTMENT FLOWS INVESTMENT MARKET INVESTMENT OPPORTUNITIES INVESTMENT PLANS INVESTMENT POLICIES INVESTMENT POLICY INVESTMENT PROCESS INVESTMENT PROMOTION INVESTMENT STRATEGY JOINT VENTURE JOINT VENTURE PARTNERS JOINT VENTURES LABOR MARKETS LEGAL ENVIRONMENT LEGAL FRAMEWORK LESS DEVELOPED ECONOMIES LIBERALIZATION LICENSING LOCAL GOVERNMENT MACROECONOMIC INSTABILITY MACROECONOMIC STABILITY MANUFACTURERS MANUFACTURING ESTABLISHMENTS MARKET ACCESS MARKET CONDITIONS MARKET EXPANSION MARKET FAILURES MARKET INFORMATION MARKET INVESTORS MARKET SIZE MERGERS MULTINATIONAL MULTINATIONAL CORPORATIONS MULTINATIONALS NATIONAL INVESTMENT NATURAL RESOURCE NATURAL RESOURCES NEW MARKETS OPPORTUNITIES FOR INVESTORS OPPORTUNITY COST ORGANIZATIONAL STRUCTURE OWNERSHIP STRUCTURE PARTICULAR COUNTRY PARTY PATENTS POLITICAL ECONOMY POLITICAL RISK POLITICAL STABILITY POTENTIAL INVESTOR POTENTIAL INVESTORS PRIVATE SECTOR DEVELOPMENT PRODUCTION COSTS PROFITABILITY PUBLIC FINANCE REGIONAL TRADE REGRESSION ANALYSIS REGULATORY ENVIRONMENT REGULATORY FRAMEWORK RETURNS RISK OF EXPROPRIATION SETTLEMENT SMALL FIRMS SOCIAL NETWORKS STOCKS SUPPLIERS TAX TAX INCENTIVES TAXATION TECHNOLOGY TRANSFERS TNC TRADING TRANSACTION COSTS TRANSPARENCY TREATIES TREATY TURNOVER WAGES WORLD DEVELOPMENT INDICATORS Gomez-Mera, Laura Kenyon, Thomas Margalit, Yotam Reis, Jose Guilherme Varela, Gonzalo New Voices in Investment : A Survey of Investors from Emerging Countries |
| relation |
A World Bank Study; |
| description |
One out of every three dollars invested
abroad in 2012 was originated in multinationals from
developing countries. This study sheds light on the
characteristics, motivations, strategies, and needs of
emerging market investors. By including information on
investors, potential investors, and non-investors, the study
identifies differentiating factors among them that are
associated with investment decisions. Results show that
emerging market investors are active players in
international trade markets; they operate predominantly in
manufacturing, and are publicly listed and larger than
non-investors. They exhibit a strong regional bias: they
invest more heavily in neighbors and in other countries in
their own regions. Outward FDI from emerging markets is
primarily market-seeking. Expanding regional and host
markets emerged as the most important factor influencing the
location of investments. However, emerging markets'
firms face binding costs of investing in distant, culturally
dissimilar markets, resulting, in practice in a trade-off
between market size and market familiarity. Transaction
costs associated with geographical and cultural differences
have a greater impact on services sector firms that exhibit
a stronger regional bias. Bilateral investment treaties
(BITs) partly offset these costs associated with investing
in faraway and/or unfamiliar markets. In addition,
international trade agreements increase the perceived
attractiveness of a host country to potential investors.
Political factors constitute binding constraints that deter
emerging markets' firms from investing in developing
markets. Yet, investors value political stability and
transparency more than corruption control, fair and regular
elections, and risk of expropriation in the host country.
IPAs play only a marginal role in raising awareness of
investment opportunities in developing countries, and may be
particularly ineffective in many African countries.
Nevertheless, IPAs appear to be a widely used and useful
resource for investors once they have made the decision to
enter a specific market. IPA services tend to be more
valuable for smaller and less productive firms. Overall, the
new TNCs from emerging economies do not appear to differ
dramatically from their predecessors from developed and
developing countries in previous waves of OFDI. Results
suggest that to attract FDI from emerging economies,
countries need to maintain market-friendly, liberal trade
and investment policies. In addition, joining international
trade and investment agreements can be benefitial to reduce
transaction costs associated with cross border investment.
Countries also need to provide a stable and predictable
political and institutional environment. Last and not least,
it is important to revamp IPAs and increase their
effectiveness in raising awareness of investment
opportunities and meeting investors' needs. |
| format |
Publications & Research :: Publication |
| author |
Gomez-Mera, Laura Kenyon, Thomas Margalit, Yotam Reis, Jose Guilherme Varela, Gonzalo |
| author_facet |
Gomez-Mera, Laura Kenyon, Thomas Margalit, Yotam Reis, Jose Guilherme Varela, Gonzalo |
| author_sort |
Gomez-Mera, Laura |
| title |
New Voices in Investment : A Survey of Investors from Emerging Countries |
| title_short |
New Voices in Investment : A Survey of Investors from Emerging Countries |
| title_full |
New Voices in Investment : A Survey of Investors from Emerging Countries |
| title_fullStr |
New Voices in Investment : A Survey of Investors from Emerging Countries |
| title_full_unstemmed |
New Voices in Investment : A Survey of Investors from Emerging Countries |
| title_sort |
new voices in investment : a survey of investors from emerging countries |
| publisher |
Washington, DC: World Bank |
| publishDate |
2014 |
| url |
http://documents.worldbank.org/curated/en/2014/11/20459015/new-voices-investment-survey-investors-emerging-countries http://hdl.handle.net/10986/20605 |
| _version_ |
1764446650952056832 |
| spelling |
okr-10986-206052021-06-14T10:21:17Z New Voices in Investment : A Survey of Investors from Emerging Countries Gomez-Mera, Laura Kenyon, Thomas Margalit, Yotam Reis, Jose Guilherme Varela, Gonzalo ACCESS TO FOREIGN MARKETS ACCESS TO INFORMATION ACCOUNTING ADVANCED ECONOMIES ARBITRATION BANK OFFICE BARRIER BARRIERS TO INVESTMENT BENCHMARK BENCHMARKING BINDING CONSTRAINTS BUSINESS CLIMATE BUSINESS ENVIRONMENT BUSINESS OPPORTUNITIES BUSINESS REGULATIONS CAPITAL FLOWS CAPITAL FORMATION COMMITMENT DEVICES COMPANY COMPETITIVE ADVANTAGE COMPETITIVE ADVANTAGES COMPETITIVENESS COMPETITORS COUNTRY DUMMY COUNTRY MARKET DECISION MAKING DEMOCRACY DEVELOPING COUNTRIES DEVELOPING COUNTRY DEVELOPING ECONOMIES DEVELOPING MARKETS DEVELOPMENT PATH DIRECT INVESTMENTS DOMESTIC CAPITAL DOMESTIC COMPETITION DOMESTIC MARKET DOMESTIC MARKETS DUMMY VARIABLE DUMMY VARIABLES ECONOMIC AGREEMENTS ECONOMIES OF SCALE EMERGING ECONOMIES EMERGING MARKETS EMERGING-MARKET EMPLOYMENT EPZ EQUIPMENT EXPECTED RETURNS EXPORT PROCESSING ZONE EXPORT PROCESSING ZONES EXPOSURE EXTERNAL FINANCE FINANCE CORPORATION FINANCIAL SERVICES FIRM SIZE FOREIGN ASSETS FOREIGN DIRECT INVESTMENT FOREIGN FIRMS FOREIGN INVESTMENT FOREIGN INVESTMENTS FOREIGN INVESTOR FOREIGN INVESTORS FOREIGN MARKETS FOREIGN SALES GDP GLOBAL ECONOMY GLOBAL GROSS DOMESTIC PRODUCT GLOBAL INVESTMENT GLOBAL INVESTORS GLOBAL MARKETS GLOBALIZATION GOVERNMENT INVESTMENT GOVERNMENT POLICIES GROSS DOMESTIC PRODUCT GROSS DOMESTIC PRODUCT PER CAPITA GROWTH RATE HOLDING HOME COUNTRY HOME MARKETS HOST COUNTRIES HOST COUNTRY HOST ECONOMY HOST GOVERNMENTS INCOME INFORMATION ASYMMETRIES INFORMATION TECHNOLOGY INFORMATIONAL ASYMMETRIES INSTITUTIONAL ENVIRONMENT INSTRUMENT INSURANCE INTANGIBLE INTERNATIONAL BANK INTERNATIONAL COMPETITION INTERNATIONAL DEVELOPMENT INTERNATIONAL ECONOMICS INTERNATIONAL FINANCE INTERNATIONAL FIRMS INTERNATIONAL INVESTMENTS INTERNATIONAL TRADE INVESTING INVESTMENT ACTIVITIES INVESTMENT AGREEMENTS INVESTMENT CLIMATE INVESTMENT CLIMATES INVESTMENT CONTRACTS INVESTMENT DECISIONS INVESTMENT FLOWS INVESTMENT MARKET INVESTMENT OPPORTUNITIES INVESTMENT PLANS INVESTMENT POLICIES INVESTMENT POLICY INVESTMENT PROCESS INVESTMENT PROMOTION INVESTMENT STRATEGY JOINT VENTURE JOINT VENTURE PARTNERS JOINT VENTURES LABOR MARKETS LEGAL ENVIRONMENT LEGAL FRAMEWORK LESS DEVELOPED ECONOMIES LIBERALIZATION LICENSING LOCAL GOVERNMENT MACROECONOMIC INSTABILITY MACROECONOMIC STABILITY MANUFACTURERS MANUFACTURING ESTABLISHMENTS MARKET ACCESS MARKET CONDITIONS MARKET EXPANSION MARKET FAILURES MARKET INFORMATION MARKET INVESTORS MARKET SIZE MERGERS MULTINATIONAL MULTINATIONAL CORPORATIONS MULTINATIONALS NATIONAL INVESTMENT NATURAL RESOURCE NATURAL RESOURCES NEW MARKETS OPPORTUNITIES FOR INVESTORS OPPORTUNITY COST ORGANIZATIONAL STRUCTURE OWNERSHIP STRUCTURE PARTICULAR COUNTRY PARTY PATENTS POLITICAL ECONOMY POLITICAL RISK POLITICAL STABILITY POTENTIAL INVESTOR POTENTIAL INVESTORS PRIVATE SECTOR DEVELOPMENT PRODUCTION COSTS PROFITABILITY PUBLIC FINANCE REGIONAL TRADE REGRESSION ANALYSIS REGULATORY ENVIRONMENT REGULATORY FRAMEWORK RETURNS RISK OF EXPROPRIATION SETTLEMENT SMALL FIRMS SOCIAL NETWORKS STOCKS SUPPLIERS TAX TAX INCENTIVES TAXATION TECHNOLOGY TRANSFERS TNC TRADING TRANSACTION COSTS TRANSPARENCY TREATIES TREATY TURNOVER WAGES WORLD DEVELOPMENT INDICATORS One out of every three dollars invested abroad in 2012 was originated in multinationals from developing countries. This study sheds light on the characteristics, motivations, strategies, and needs of emerging market investors. By including information on investors, potential investors, and non-investors, the study identifies differentiating factors among them that are associated with investment decisions. Results show that emerging market investors are active players in international trade markets; they operate predominantly in manufacturing, and are publicly listed and larger than non-investors. They exhibit a strong regional bias: they invest more heavily in neighbors and in other countries in their own regions. Outward FDI from emerging markets is primarily market-seeking. Expanding regional and host markets emerged as the most important factor influencing the location of investments. However, emerging markets' firms face binding costs of investing in distant, culturally dissimilar markets, resulting, in practice in a trade-off between market size and market familiarity. Transaction costs associated with geographical and cultural differences have a greater impact on services sector firms that exhibit a stronger regional bias. Bilateral investment treaties (BITs) partly offset these costs associated with investing in faraway and/or unfamiliar markets. In addition, international trade agreements increase the perceived attractiveness of a host country to potential investors. Political factors constitute binding constraints that deter emerging markets' firms from investing in developing markets. Yet, investors value political stability and transparency more than corruption control, fair and regular elections, and risk of expropriation in the host country. IPAs play only a marginal role in raising awareness of investment opportunities in developing countries, and may be particularly ineffective in many African countries. Nevertheless, IPAs appear to be a widely used and useful resource for investors once they have made the decision to enter a specific market. IPA services tend to be more valuable for smaller and less productive firms. Overall, the new TNCs from emerging economies do not appear to differ dramatically from their predecessors from developed and developing countries in previous waves of OFDI. Results suggest that to attract FDI from emerging economies, countries need to maintain market-friendly, liberal trade and investment policies. In addition, joining international trade and investment agreements can be benefitial to reduce transaction costs associated with cross border investment. Countries also need to provide a stable and predictable political and institutional environment. Last and not least, it is important to revamp IPAs and increase their effectiveness in raising awareness of investment opportunities and meeting investors' needs. 2014-12-02T23:21:19Z 2014-12-02T23:21:19Z 2015 http://documents.worldbank.org/curated/en/2014/11/20459015/new-voices-investment-survey-investors-emerging-countries 978-1-4648-0371-0 http://hdl.handle.net/10986/20605 English en_US A World Bank Study; CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ Washington, DC: World Bank Publications & Research :: Publication |