Outward foreign direct investment from emerging economies has occurred in three waves according to trends in the literature. Strategic drivers of this outward investment include seeking natural resources, markets, labor, value chain control, financial incentives, and technology. Home country policies aimed at outward investment focus on promotional strategies, investment coordination, negotiating deals to leverage outward investment, and ensuring the sustainability of benefits.

1. Outward Foreign Direct Investment from Emerging Economies: Trends, Drivers and Firm-Driven Home Government Policies Peter Gammeltoft

2. Threewaves of outward FDI

3. Threewaves of outward FDI (cont’d) Source: Dunning et al. 1996, 1998, Lall 1983, Chudnovsky and Lopez 2000, Andreff 2003, UNCTAD 2006, plus own revisions and additions, particularly the third wave.

4. Strategic drivers of OFDI from emerging economies Natural resource seeking Market seeking Labor seeking Value chain control seeking Financial incentive seeking Technology seeking

5. Implications for home country policies Promotional strategies Investment coordination Striking bargains Leveraging Sustainability