Foreign Direct Investment and Developing Countries Insertion in the International Scene: the experience of China and Brazil

Authors

  • Andréia Polizeli Sambatti UNIVERSIDADE ESTADUAL DO OESTE DO PARANÁ - UNIOESTE
  • Denise Rissato UNIVERSIDADE ESTADUAL DO OESTE DO PARANÁ - UNIOESTE
  • Augusto Cezar Brandenburg UNIVERSIDADE ESTADUAL DO OESTE DO PARANÁ - UNIOESTE

Keywords:

Foreign Direct Investment, International Insertion, China, Brazil

Abstract

This paper discusses the role of foreign direct investment in the international insertion of developing countries, highlighting the experience of China and Brazil. For this procedure analysis was carried out based on the comparative method. Results showed that the Chinese government conduction on the process of economy opening and reform effectively influenced the direction and the contribution of foreign direct investment to insert the country more actively worldwide, given the preference for foreign investment in order to encourage international trade by promoting high technology products exportation. On the other hand, in Brazil, as the economy openness, there was not an economic policy direction of foreign direct investment to boost the productive activities and generate new export products, especially high-value, on the contrary, most of these investments was channeled into the service business, as a consequence of the privatization process, taking the form of mergers and acquisitions with the purchase of existing assets. In addition, the government used foreign direct investment to finance current account deficits and did not create new competitive skills to break the passive insertion of the country on the international scene.

Author Biographies

Andréia Polizeli Sambatti, UNIVERSIDADE ESTADUAL DO OESTE DO PARANÁ - UNIOESTE

Professora da Universidade Estadual do Oeste do Paraná, Campus de Cascavel - UNIOESTE, Brasil.

Possui mestrado em Teoria Econômica pela Universidade Estadual de Maringá - UEM, Brasil.

Desenvolve estudos nas áreas de Macroeconomia e Economia Internacional.

Denise Rissato, UNIVERSIDADE ESTADUAL DO OESTE DO PARANÁ - UNIOESTE

Professora da Universidade Estadual do Oeste do Paraná, Campus de Foz do Iguaçu - UNIOESTE.

Possui mestrado em Economia Aplicada  pela Escola Superior de Agricultura da Universidade de São Paulo - ESALQ/USP, Brasil.

Augusto Cezar Brandenburg, UNIVERSIDADE ESTADUAL DO OESTE DO PARANÁ - UNIOESTE

Possui graduação em Ciências Econômicas pela Universidade do Oeste do Paraná - UNIOESTE, Brasil.

Published

08-03-2012

How to Cite

Sambatti, A. P., Rissato, D., & Brandenburg, A. C. (2012). Foreign Direct Investment and Developing Countries Insertion in the International Scene: the experience of China and Brazil. Capital Científico Journal - Electronic (RCCҽ) - ISSN 2177-4153, 9(1), 113–129. Retrieved from https://revistas3.unicentro.br/index.php/capitalcientifico/article/view/1047