Despite a global surge in Chinese foreign direct investment during the first half of 2015, the United States remains the leading global financial power based on total foreign direct investment. During 2015, outward US net foreign direct investment (FDI) reached $424.4 billion, an amount that was not only 27.8 percent of total global financial flows but that was also more than four times than the total FDI of China. Moreover, American foreign investment in 2015 was nearly five times its total value in 2005, providing a direct opportunity to increase US global influence. So, where in the world does the United States have the most influence, at least in terms of FDI?
One approach to answering this question is through examination of trends in the share of inward FDI stock from the US on a country-by-country basis. The IMF's Coordinated Direct Investment Survey dataset and the UN’s Bilateral FDI Statistics each provide FDI data by investment source and the recipient country. US influence through FDI is geographically lopsided and generally risk adverse, based on IMF data:
Where US FDI is not, Chinese FDI is. The investment void the US has maintained in regions with riskier investment profiles has provided China with an opening to expand its influence.
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The Global Opportunity Index answers a pressing need for information that's vital to a thriving global economy. What policies can governments pursue to attract foreign direct investment (FDI), expand their economies, and accelerate job creation. What do multinational companies, other investors, and development agencies need to know before making large-scale, long-term capital commitments. The costs and conditions of doing business are central to the FDI equation. Natural resources and hardworking people have great value, of course, as do a sophisticated banking system and healthy...
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