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6 J. World Investment & Trade 639 (2005)
New Sources of FDI: The BRICs - Outward FDI from Brazil, Russia, India and China

handle is hein.journals/jworldit6 and id is 639 raw text is: New Sources of FDI: The BRICS Outward FDIfrom Brazil) Russia, India and China Karl P SAUVANT* INTRODUCTION Foreign direct investment (FDI) has become more important than trade for delivering goods and services to foreign markets: in 2003, the sales of foreign affiliates (US$ 18 trillion) were twice as large as exports (US$ 9 trillion). In addition to integrating markets, FDI also integrates production activities internationally through the corporate production systems established by transnational corporations (TNcs). Such deep integration constitutes, in many ways, the productive core of the globalizing world economy. All countries are, to a higher or lower degree, involved in this integration process. This article focuses on Brazil, the Russian Federation, India, and China (the BRiCs), four economies that are particularly important' and promising and whose rise will transform the world economy (Wilson et al., 2004). They have participated in this integration so far primarily through inward FiI; that is, through foreign firms undertaking direct investment in their territories. While all four countries have attracted substantial amounts of FDI, this performance has been highly uneven, whatever measure is used. In particular, while China has made great strides to become the workshop of the world, India is at the beginning of becoming its office. More interesting is the fact that all four economies are becoming sources of outward FDI (ODI); that is, firms from BRics undertaking direct investment abroad, in * Former Director, United Nations Conference on Trade and Development (UNCTAD), Division on Investment, Technology and Enterpnse Development, Geneva, Switzerland; initiator and chief author of UNCTAD's World Inwestment Reports, 1991-2005; Guest Professor, Nankai University, China. The author wishes to acknowledge very helpful contributions by Kee Hwee Wee and Masataka Fujita, as well as comments and inputs from Eddie Chen, Vccn jha, Alexandre Saimpaio de Arrochela Lobo, Padma Mallampally,Jaya Prakash Pradhan, Fernando Alberto G. Sanipaio C. RochaJames Zhan, Tatiana Krylova, Hamed el Kady, Mohamed Chiraz Baly, Bradley Boicourt and Lizanne Martinez. Slightly different versions of this article were presented at a conference on Meeting the Challenges of the BRics, University of Connecticut, Storrs, Connecticut, 29-30 April 2005, under the title Global Players from the BRics: The Rise of Outward Fl from Brazil, Russia, India and China, and at the seminar on Global Players from Emerging Markets: Brazil, organized by the Brazilian Ministry for Development, Industry and Foreign Trade, UNCTAD and Fundagio Dom Cabral, So Paulo, Brazil, 30 May 2005. This article will be included in Subhash Jain, (ed.), Competing with the BRics, Edward Elgar, Cheltenham, U.K., forthcomung, 2006. The author may be contacted at: <karlsauvant(dcarthlink.net,. China is the largest cmerging market economy in terms of gross domestic product, followed by the Republic of Korea, Mexico, India, Brazil, and the Russian Federation. As the Republic of Korea and Mexico are Members of the Orgaisation for Economic Co-operation and Development (OECD), the BRiCs are the largest non-OECD economies.

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