FOREIGN DIRECT INVESTMENT: DIAGNOSIS AND PROPOSALS FOR A BRAZILIAN PUBLIC POLICY

Ano: 2011 | Volume: 6 | Número: 1

Autores: Milton de Abreu Campanário, Marcello Muniz da Silva, Milton de Freitas Chagas Junior, Leonel Cesarino Pessoa

Palavras-chave: Brazilian foreign direct investment- FDI, transnational corporations, foreign trade

Resumo Inglês:

The text is the part of public policy of a larger research project on Brazilian Outward Foreign
Direct Investment - OFDI. The text analyses the viability to adopt policies to enhance FDI,
particularly outward. Based on statistical data and on literature review, the policy agenda frames
the underling questions surrounding the theme. There is not yet a theoretical framework to deal
with emergent countries’ FDI and related policies. There exist strong evidences that capital flows
through FDI generate externalities in the following domains: macroeconomics, microeconomics
and foreign relations particularly in areas related to industrial organization and innovation. The
theoretical proposition is that international capital flows are compatible to monetary stability,
commercial openness, investment promotion and industrial innovation policies. A better
positioning of national enterprises internationally may result in growing partnership within the
foreign environment. Brazil has not a set of policies to deal with inward and outward Brazilian
FDI flows. These policies do not necessarily jeopardize macroeconomic policy and the related
monetary and currency stabilization goals. It contends that FDI stimulus by means of public
policies may contribute not just to a better competitiveness and innovation of Brazilian
enterprises, but also assure a balanced growing and economic structural change.