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Outward FDI from Colombia and its policy context

Ana-Maria Poveda-Garces

Title:
Outward FDI from Colombia and its policy context
Author(s):
Poveda-Garces, Ana-Maria
Date:
Type:
Reports
Department:
Vale Columbia Center on Sustainable International Investment
Permanent URL:
Series:
Columbia FDI Profiles
Publisher:
Vale Columbia Center on Sustainable International Investment
Publisher Location:
New York
Abstract:
Outward foreign direct investment (OFDI) from Colombia has increased considerably in the past decade, with its stock growing from US$ 3 billion in 2000 to US$ 23 billion in 2010. This growth reflects the internationalization of the Colombian economy following policy reforms and economic liberalization in the 1990s. The 2000s were characterized by enhanced national security and reforms to the investment framework that have attracted unprecedented levels of inward FDI and facilitated the growth of small and medium-sized enterprises (SMEs). A considerable rise in domestic mergers and acquisitions (M&As) in the past decade has contributed to the development of Colombian multinational enterprises (MNEs) and to increased OFDI from Colombia. In 2010, outflows showed a twenty-fold increase from their value in 2000, including an increase in OFDI to export markets, helped by greater government support for OFDI, for example by the conclusion of more international investment agreements. The rise of Colombian MNEs, or "translatinas" (i.e. Latin American MNEs whose OFDI is primarily within Latin America), reflects Colombia's nascent structural transformation into a knowledge-based economy.
Subject(s):
Finance
Economics
Item views:
255
Metadata:
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