1. Open Doors
- Author:
- Paul Masson, Michael Pomerleano, and Robert E Litan
- Publication Date:
- 06-2001
- Content Type:
- Policy Brief
- Institution:
- The Brookings Institution
- Abstract:
- Foreign direct investment in financial firms in emerging markets surged in the 1990s, although not equally in all places. The main beneficiaries: Latin America and Central Europe, with Asia a distant third. This conference report summarizes findings on the impacts—mainly positive—of this significant inflow of funds and managerial and technical know-how, as well as recommendations for policies toward foreign direct investment (FDI) in the future. The main recommendation: countries with restrictions generally should relax them, even when their own financial systems are weak. At the same time, foreign entry gives rise to new policy challenges, supervisory and competitive, which emerging markets need to confront both unilaterally and with cooperation from source country governments.
- Topic:
- Emerging Markets, International Trade and Finance, and Third World
- Political Geography:
- Asia, Latin America, and Central Europe