FDI in emerging markets

Among the different forms of capital flows, academics and policymakers, talk about foreign direct investment (FDI) the most. This is because of several benefits of FDI and its importance in the world economy vis-à-vis other forms of capital flows. In the past fifteen years, FDI has been the dominant form of capital flow in the global economy, even for developing countries. FDI now have turned up their route towards emerging economies. Emerging markets are clearly outperformed by developed countries, and the disparities among countries are stark. While the world average was $115, it was $505 for developed countries and $49 for emerging markets.The paper studies the changes in the pattern of FDI and which have been diverted towards emerging economies.