Abstract
Economic and financial commentary on Brazil, Russia, India, and China (the ‘BRIC’ countries) generally focuses on these countries' accumulation of foreign exchange reserves, while their outward foreign direct investment (FDI) typically attracts less attention. While FDI from the BRIC countries remains relatively small, its growth potential is substantial. Due to its economic size, rapid economic growth, large external surpluses, and the nature of political-strategic incentives, China has by far the largest outward FDI potential. It will be interesting to observe whether the current crisis leads China closer to realizing its considerable potential.
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Markus Jaeger
Dr. Markus Jaeger is a Director at Deutsche Bank Research in New York, USA. He is responsible for economic, financial, and political risk research, with a special focus on the larger emerging markets. His current research interests include the global economic, political, and financial implications of the rise of the ‘BRIC’ countries. Previously, he oversaw Deutsche Bank's EEMEA (Eastern Europe, Middle East, and Africa) and Latin American sovereign and country risk research in London and New York. He holds a Ph.D. from the London School of Economics.