GLOBAL ASPECTS OF FOREIGN INVESTMENTS FLOW
GLOBAL ASPECTS OF FOREIGN INVESTMENTS FLOW

Summary/Abstract: Foreign investment fund in the world has multiplied several times in the last two decades. However, growing trend of foreign investments flow has been broken by the recent financial crisis in the world. Lower inflow of foreign investments into the developing countries has made the funding of their current accounts difficult, because it became more difficult for them to get loans in the international capital market. Most net importers of capital are net debtors in the international capital market, which made them increase investment attractiveness for international investors. Thus they tried to decrease their exposure to the loan market. Although foreign investments are desirable source of funding the current account deficit, net inflow of these funds generates negative balance in the income account and puts pressure on the balance of payments of the country. World investment flows have returned to the upward trend in 2013. This paper analyses foreign investments flow in the world, by groups of countries. The groups of countries, the subject analysis of this paper, are: Asia, Latin America, Africa, countries in transition and developed countries. The most significant countries that are net exporters of capital in the world are the European Union and USA, while the biggest importers are the growing Asian countries.

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