TORONTO, Aug. 21 /CNW/ - Canada is an underachiever when it comes to
global capital market participation, says an e-brief from the C.D. Howe
Institute, and the country should make itself more open to foreign investment.
In "Canada Is Missing Out On Global Capital Market Integration," Jack M. Mintz
and Andrey Tarasov write that, far from being 'hollowed-out,' Canada stands
only 46th among 73 countries when ranked by foreign direct investment inflows.
Since 2001, the most open economies - as measured by the sum of
investment inflows and outflows as a share of GDP - were Luxembourg, Hong
Kong, Singapore, Iceland, and the Netherlands. In contrast, among the G7
countries, Canada was less open than the United Kingdom or France, and
received lower FDI inflows as a share of GDP than did major developing
countries such as Brazil, China, or Mexico. To improve its performance,
therefore, the Canadian economy needs to become better integrated with world
capital markets, and Canadian businesses need to be able to participate more
fully in global supply chains.
The study is available at http://www.cdhowe.org/pdf/ebrief_48.pdf
For further information:
For further information: Jack Mintz, Professor of Business Economics,
J.L. Rotman School of Management, University of Toronto, and Fellow-in
Residence, C.D. Howe Institute, (416) 865-1904 (email email@example.com). Finn
Poschmann, Director of Research, C.D. Howe Institute, (416) 865-1904 (email