CAPITALIST DEVELOPMENT COMPARED: A study on the pattern of Brazilian and South Korean Outward Foreign Direct Investment

Abstract

This paper aims to explain and characterize how the outward FDI is treated within the Brazilian and South Korean standard development. In this regard, at first the main characteristics of the Brazilian and South Korean industrialization process are discussed in a historical perspective, which was marked by the State conducting and planning. Brazilian’s polices to support the internationalization are not so intensive like South Korean’s. The comparative study between the two countries demonstrated that the performance of international integration is a result of how the industrialization process was conducted. The outward FDI from South Korea exposes a more consistent performance in quantitative terms, it is more geographically diverse and focused on the most technologically sophisticated sectors. Meanwhile the Brazilian outward FDI has grown significantly in the recent years, but has insufficient institutional care and is controlled by less sophisticated sectors.