Saturday, June 9, 2012

9/6/2012: Chinese equity FDI in Europe

An interesting set of stats on Chinese equity FDI in 2011. The source is here.

In absolute terms (from the original source):

And in per capita terms (computed by me):

An interesting observation: were Ireland attracting Chinese investment at the rate of Malta (ranked 1 in the EU27), our total stock of Chinese FDI would have been around €923mln as compared to our current stock of €324mln, ranking us 5th in absolute terms in EU27 instead of current 9th. Of course, one has to keep in mind that China's investments in Malta are extremely concentrated.

As is, our performance with respect to Chinese equity investments is not too bad. Some room for growth is left, but 6th place on per-capita terms is not too bad, given we are late-comers to the game of attracting Chinese FDI.

It is also worth noting just how low does Greece rank in both charts. And worthy of the is the stellar UK performance in both charts. Here's a trouble, though, folks. The UK is, allegedly, marginalized from the 'centre table' of 'Europe' and is not in the common currency mad... err... hot... house. And notice that Denmark is doing not too badly either. So what does this UK's (and Denmark's)performance tell us about the argument the thesis so commonly advanced in Ireland that 'investors want euro membership'?


JeromeK said...

As someone who works in a US MNC, I am also sceptical why an exit from Euro would be bad for investment here - as parroted by our political class. Assuming we remain within EU, assuming a 25% devaluation or more against the Euro, would reduce our input costs and make us more competitive.I cannot see any US management rushing to reduce investment on this news especially in ICT where manpower is biggest cost.

Term papers said...

Good Article About Chinese equity FDI in Europe.