Global Players from Emerging Markets: Strengthening ... - Unctad

A. Introduction
This paper analyses the evolution of Brazilian
OFDI from 1997 to 2005. It shows how OFDI
development in Brazil goes in parallel with the pattern
identified in other emerging economies (UNCTAD
2005). It examines the drivers and motivation of
Brazilian firms investing abroad. Examples of
Brazilian companies’ strategies involving their recent
moves to gain international competitiveness are
CHAPTER III
TABLE OF CONTENTS 23
OUTWARD FOREIGN DIRECT INVESTMENT BY
ENTERPRISES FROM BRAZIL*
* This paper was prepared by André Almeida, Erika Penido
Barcellos, Álvaro Bruno Cyrino, Sherban Leonardo Cretoiu,
Ana Vitória Alkmim de Souza Lima and Caio César Radicchi at
Fundação Dom Cabral.
12000
10000
8000
6000
4000
2000
0
-2000
-4000
1980
1981
1982
1983
1984
1985
Figure 1. Brazilian OFDI flows, 1980-2005
(Millions of dollars)
Source: Banco Central do Brasil, Balance of Payments 2005.
1986
1987
1988
1989
1990
1991
1992
1993
23
reviewed. Lastly, the impact of internationalization
on the firms’ competitiveness is analyzed, as well as
the regulatory environment and policy options.
B. OFDI from Brazil: Trends and
development
Brazilian OFDI 12 has increased significantly
since 1999, with exception of a slowdown in 2001
and 2003 (figure 1).
12 Banco Central do Brasil uses the criteria of the 10 per cent
invested in the company by Brazilian shareholders investment
to distinguish shareholding related to direct investments from
portfolio investments. Participations less than this percentage are
registered under portfolio.
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005