Are Chinese Capital Controls Still Binding? If So, to What End?

Today we are fortunate to have a guest contribution written by Yin-Wong Cheung, Professor on International Economics at City University Hong Kong, formerly professor at UCSC. The recent years have been a frustration for anyone trying to make sense of China’s capital control policies. Capital controls have been an important part the Chinese economic policies since the […]

China Gobbles Up Assets in Latin America

China National Petroleum Corp (CNPC) has agreed to purchase $2.6 billion in Peruvian gas assets from Brazil’s debt-strapped state-run oil company Petrobras as China works fast to increase its Latin America footprint. CNPC, China’s top oil and gas firm, will buy Petrobras Energia Peru SA, which owns three oil and gas blocks in Peru, currently […]

Once And For All—Why Capital Levies Are Not The Answer

By Michael Keen Holy grail Last night, when you went to bed, you left $40 on the kitchen table. When you woke up this morning, you found only $30—and a note from the government saying, “Thank you very much, we took $10 as a tax payment.” This is, of course, extremely irritating. To an economist, however, […]

Europe’s Eroding Foreign Investment

Today foreign direct investment (FDI) is driven by emerging nations and the impending unwinding of U.S. monetary stimulus. In Europe, the lingering debt crisis is reflected in the dramatic plunge of FDI inflows. In the postwar era, the degree of global economic integration was still relatively low. As a result, international trade played a vital […]

Resource-Backed Investment Finance in Least Developed Countries

In recent decades, Least Developed Countries (LDCs) have been using their natural-resources as collateral to access sources of finance for investment, countervailing the barriers they face when accessing conventional bank lending and capital markets.  Depending on whom you ask, such financing models have been alternately vilified and sanctified in the global development debate. In an effort to […]

Emerging Markets Selloff: What’s Next?

The last weeks of summer have been marked by renewed pressure of capital outflows and exchange rate devaluations in several systemically relevant emerging markets. In fact, this is just the latest round of a global portfolio rebalancing that has been in motion since May 22, when talk of the US Federal Reserve shrinking – and […]

Does Nigeria’s Huge FDI Benefit Nigerians?

With its natural resources, size and growth, Nigeria is Africa’s largest recipient of foreign investment. But are the huge FDI flows benefiting ordinary Nigerians? Global FDI is no longer immune to the post-global recession challenges. Last year, it plunged by a whopping 18 percent. Nonetheless, FDI inflows to African countries actually rose by five percent, […]

Development Banks and Post-Crisis Blues in Investment Finance

International long-term private finance to developing countries has changed dramatically in the wake of the global financial crisis. Caught in “post-crisis blues”, as my World Bank colleagues Jeff Chelsky, Claire Morel and Mabruk Kabir called it in a recent Economic Premise, some traditional sources of long-term finance are strained, and alternatives have not been able […]

China Sovereign Wealth Fund’s Shifting Strategy

China Investment Corporation (CIC), the country’s main sovereign wealth fund, posted a 10.65% return on its overseas investment in 2012, registering an above 5% cumulative annualized return since its establishment in 2007. This is a significant improvement compared with the 4.3% loss last year, the fund’s worst performance in 5 years. As a young member […]

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