| Factor Payments to Abroad. Definition |
Róbinson Rojas
Net Factor Payments to
Abroad. All economies. 1960 to 1992 |
From the Federal Reserve Bank of Kansas City - 2006
Going Global: the changing pattern of U.S. investment abroad
By Marcella Mireille Aurélio
|
| Link to Integrated International Production |
| Link to "The Triad: European Union, U.S.A. and Japan)" |
| Global Development Finance 2004 |
| Global Development Finance 2003 |
| Global Development Finance 2002 |
Chen Chunlai, 1997
Provincial
characteristics and foreign direct investment location decision within China
Foreign direct investment (FDI) is one of the most dramatic features of China’s move
from a planned economy toward a market economy. Since the passing in late 1979 of
the Equity Joint Venture Law which granted legal status to FDI in Chinese territory,
China has gradually liberalised its FDI regime, and an institutional framework has
been developed to regulate and facilitate such investments. The liberalisation of the
FDI regime and the improved investment environment have greatly increased the
confidence of foreign investors in China. Consequently, FDI inflows into China
increased rapidly after 1979, and particularly during the early 1990s. The total
accumulated amount of FDI at current prices rose from the initial US$0.109 billion in
1979 to reach US$133.19 billion in 1995, at an annual growth rate of 55.93 percent...
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Chen Chunlai, 1997
The location determinant
of Foreign Direct Investment in developing countries
Since the late 1980s and especially in the early 1990s, China has received a huge
amount of FDI in absolute terms. Its share both in the world total FDI inflows and in the
total FDI inflows into developing countries has increased rapidly. As a result, since
1992 China has been the single largest host country among all developing countries, and
further since 1993 China has become the second largest FDI recipient in the world
(following the United States). China’s success in attracting FDI into its domestic
economy in recent years has caused concern in many other developing countries that the
huge amount of FDI inflows into China may represent a diversion of world FDI away
from them.
However, China is large, and large countries normally receive a large amount of
FDI inflows. Has China really received more FDI inflows from the world than it should
have, based on its economic and geographical characteristics? To answer this question
we have to investigate the location determinants affecting FDI inflows into developing
countries and establish an empirical norm of the magnitude of aggregate FDI inflows...
|
Chen Chunlai, 1997
Comparison of investment
behaviour of source countries in China
Since China launched the economic reforms and called for direct foreign capital
participation in boosting its economic growth and upgrading its overall production
technology, China has become one of the world most important countries to host
foreign direct investment (FDI). On the one hand, FDI inflows into China increased
rapidly after 1979, and particularly during the early 1990s. On the other hand, more
than 100 countries have invested in China. As a result, since 1993 China has become
the second largest FDI recipient in the world (following the United States) and the
single largest host country among the developing countries (United Nations, 1995, p.
54). However, what is the composition of the source countries of FDI in China? Do
the source countries differ in their investment behaviour? This paper will discuss and
answer these questions...
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UNCTAD
Development and Globalization: Facts and Figures 2004
Analyses supported by detailed statistical
documentation. The report is aimed at a broad audience, including readers with little or
no background in economics. It provides an overview of the evolution of developing
countries in the context of globalization. It is a quick-reference tool for evaluating the
growth prospects of developing countries. General topics covered include population and
economic trends, external finance and debt, foreign direct investment, transnational
corporations, international trade, production and trade of commodities and manufactures,
and information and communication technologies (ICT). 119 pages. |
UNCTAD
Foreign
Direct Investment Statistics
|
From UNCTAD - October 2006
Need
for more policy autonomy
10 October 2006 - At the final meeting of UNCTAD´s Mid-Term
Review, developing countries called for more room for policy
manoeuvre and a strengthening of the Aid for Trade initiative.
Participants also said the trade negotiations should be more
development focused. UNCTAD´s Mid-Term Review concluded today
with member States agreeing that developing countries, in
fashioning the individualized plans that will best enable them to
expand their economies, have the right to strike a balance between
development goals and the rules and commitments contained in
international trade and financial agreements.
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|
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Booming South-South investment creates development
opportunities, says UNCTAD
UNCTAD/PRESS/PR/2006/027 - , 16/10/06
Also available in: French
Spanish
|
Firms based in developing countries joining ranks of world's largest
transnational corporations
,
UNCTAD/PRESS/PR/2006/034 - , 16/10/06
Also available in: French
Spanish
|
Gravity shifts to Asia in global FDI and R&D networks
, UNCTAD/PRESS/PR/2005/053 - ,
15/11/05
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Foreign direct investments rebounds in Latin America & The Caribbean
, UNCTAD/PRESS/PR/2005/037
- , 29/09/05
Also available in: French
Spanish
|
Foreign direct investment in Africa remains buoyant, sustained by interest
in natural rseources
,
UNCTAD/PRESS/PR/2005/035 - , 29/09/05
Also available in: French
Spanish
|
FDI rises for fourth year in a row in South-East Europe,
Commonwealth of Independent States
,
UNCTAD/PRESS/PR/2005/038 - , 29/09/05
Also available in: French
Spanish
|
New UNCTAD surveys: Foreign Direct Investment prospects
promision for 2005-2008
, UNCTAD/PRESS/PR/2005/031
- , 05/09/05
Also available in: Spanish
|
Transnational corporations expected to increase dominance of
clothing and textile sectors, says UNCTAD
, UNCTAD/PRESS/PR/2005/019 - , 13/06/05
Also available in: French
Spanish
|
Firms in developing countries rapidly expanding foreign
investment, transnational activities
, UNCTAD/PRESS/PR/2005/018 - , 30/05/05
Also available in: French
Spanish
|
A decade of FDI liberalization: the evidence
, UNCTAD/PRESS/IN/2005/012 - , 16/03/05
Also available in: French
|
China is not crowding out FDI from the rest of East Asia, experts say
, UNCTAD/PRESS/IN/2005/007
- , 07/03/05
Also available in: French
Spanish
|
New role for Japan's Sogo Shosha as they shift from manufacturing to services
, UNCTAD/PRESS/IN/2005/002
- , 20/01/05
Also available in: French
|
New Issue of Transnational Corporations Journal published
, UNCTAD/PRESS/IN/2005/001 -
, 14/01/05
Also available in: French
|
World FDI flows grew an estimated 6% in 2004, ending downturn
, UNCTAD/PRESS/PR/2005/002 - ,
11/01/05
Also available in: French
|
Towards centre stage: trade gains for the South can mean progress on Millenium Development Goals
, UNCTAD/PRESS/PR/2004/041/Corr.1 - , 20/12/04
Also available in: French
Spanish
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Africa: turnaround in FDI inflows last year
, UNCTAD/PRESS/PR/2004/024 - , 22/09/04
Also available in: French
Spanish
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Foreign Direct Investment: a rebound in the offing, led by FDI in developing countries and FDI in services
, UNCTAD/PRESS/PR/2004/022 - , 22/09/04
Also available in: French
Spanish
|
FDI inflows to Latin America and the Caribbean: another disappointing yera
, UNCTAD/PRESS/PR/2004/026 - , 22/09/04
Also available in: French
Spanish
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FDI down in three Latin American economies
, UNCTAD/PRESS/EB/2004/007 - , 05/03/04
Also available in: French
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Many African countries see declining FDI in 2002
, UNCTAD/PRESS/EB/2004/002 - , 20/01/04
Also available in: French
Spanish
|
FDI plunges in Argentina, Venezuela
, UNCTAD/PRESS/EB/2003/09 - , 12/12/03
Also available in: French
Spanish
|
FDI to Latin America and the Caribbean plummeted in 2002
, UNCTAD/PRESS/PR/2003/91 - , 04/09/03
Also available in: French
Spanish
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Africa not spared by global downturn in Foreign Direct Investment
, UNCTAD/PRESS/PR/2003/87 - , 04/09/03
Also available in: French
Spanish
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FDI flows to Italy climb, bucking downward global trend
, TAD/INF/B35/E - , 24/05/03
Also available in: French
Spanish
|
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UNCTAD predicts 27% drop in FDI
inflows this year, TAD/INF/PR/63 - , 24/10/02
Also available in: French
Category: Press information 2002
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Dynamic products make for dynamic
economies, TAD/INF/PR/61 - , 01/10/02
Also available in: French
Spanish
Category: Press information 2002
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US remains world's largest
recipient of foreign direct investment, TAD/INF/PR/58 - ,
17/09/02
Category: Press information 2002
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Government and business leaders
meet to increase investment in Africa, TAD/INF/PR/39 - ,
20/03/02
Category: Press information 2002
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FDI downturn in 2001 touches almost
all regions, TAD/INF/PR/36 - , 21/01/02
Category: Press information 2002
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Latin America's inflows down in
2000, TAD/INF/PR/28 - , 18/09/01
Also available in: Spanish
Category: Press information 2001
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Meeting the competitive challenge:
linking TNCs with local suppliers, TAD/INF/PR/22 - ,
18/09/01
Also available in: French
Spanish
Category: Press information 2001
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Developed country FDI soars by 21%,
TAD/INF/PR/27 - , 18/09/01
Also available in: French
Spanish
Category: Press information 2001
|
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FDI increases to the World's
poorest countries, LDCIII/PRESS/01 - , 10/05/01
Category: Press information 2001
|
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Partnerships for development: how
can private sector enhance LDC's productive capacity?,
TAD/INF/PR/01 - , 26/01/01
Also available in: French
Category: Press information 2001
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FDI to Africa rises in 1999, but
continent must become bigger market player, says UNCTAD report,
TAD/INF/PR/057 - , 03/10/00
Also available in: French
Category: Press information 2000
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Prospects brighten for foreign
investment in Asia, TAD/INF/PR/058 - , 03/10/00
Also available in: French
Category: Press information 2000
|
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Survival in global business arena
is key driver of cross-border merger and acquisition boom,
TAD/INF/PR/055 - , 03/10/00
Also available in: French
Spanish
Category: Press information 2000
|
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FDI in Latin America hits record
levels, fuelled by long-term growth prospects, privatizations,
TAD/INF/PR/060 - , 03/10/00
Category: Press information 2000
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World’s largest transnational
corporations cautiously optimistic about Africa's potential
for attracting foreign direct investment, TAD/INF/PR/039 -
, 15/02/00
Also available in: French
Category: Press information 2000
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Foreign investment gains in Latin
America. Brazil inflows rise sharply to record,
TAD/INF/PR/9924 - , 23/09/99
Also available in: Spanish
Category: Press information 1999
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Developed countries boost foreign
direct investment by 46 per cent to new record,
TAD/INF/PR/9926 - , 23/09/99
Also available in: French
Spanish
Category: Press information 1999
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Foreign Investment Flows into
Central and Eastern European Countries Make Major Gains.
Latvian Shipping Co. Leads New List of the Top 25
Transnational Corporations in Central Europe,
TAD/INF/PR/9925 - , 23/09/99
Also available in: French
Category: Press information 1999
|
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International production drives
globalization, TAD/INF/PR/9920 - , 07/09/99
Also available in: French
Spanish
Category: Press information 1999
|
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Foreign Direct Investment by
Transnational Corporations can produce major benefits, if the
right government policies are in place, TAD/INF/PR/9919 -
, 03/09/99
Also available in: French
Spanish
Category: Press information 1999
|
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Foreign Direct Investment into
developing Asia has weathered the storm, TAD/INF/PR/9903 -
, 27/04/99
Also available in: French
Category: Press information 1999
|
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Educating policymakers on
international investment issues, TAD/INF/PR/99008 - ,
18/02/99
Also available in: French
Category: Press information 1999
|
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Business works with UNCTAD to boost
investment in Africa, TAD/INF/PR/99004 - , 19/01/99
Also available in: French
Category: Press information 1999
|
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Foreign Direct Investment to
Central and Eastern Europe Rises to US$19 billion in 1997,
TAD/INF/PR/9842 - , 02/11/98
Also available in: French
Category: Press information 1998
|
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Encouraging signs for Foreign
Direct Investment into Africa, TAD/INF/PR/9844 - ,
02/11/98
Also available in: French
Category: Press information 1998
|
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Foreign Direct Investment on the
rise, TAD/INF/PR/9824 - , 02/09/98
Also available in: French
Category: Press information 1998
|
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World Investment Report 1997: FDI
and competition policy, TAD/INF/PR/9715 - , 09/09/97
Also available in: French
Category: Press information 1997
|
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Business globalization continues to
boom, TAD/INF/PR/9714 - , 09/09/97
Also available in: French
Category: Press information 1997
|
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Continued upswing of global FDI in
1996, TAD/INF/PR9711 - , 10/07/97
Also available in: French
Category: Press information 1997
|
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Oil eclipsed? The rise of
manufacturing and services FDI in West Asia,
TAD/INF/PR/9707 - , 27/05/97
Also available in: French
Category: Press information 1997
|
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Transnational Corporations: New
Issue Released, TAD/INF/NC/96_39 - , 28/11/96
Category: Press information 1996
|
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Need for a holistic approach to
Foreign Direct Investment, TAD/INF/PR/9629 - , 11/10/96
Category: Press information 1996
|
|
Investment policies examined in a
new issue of "Transnational Corporations" released
today,
TAD/INF/NC/96_22 - , 09/10/96
Category: Press information 1996
|
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UNCTAD convenes a global investment
forum, TAD/INF/PR/9625 - , 03/10/96
Category: Press information 1996
|
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Report outlines ways to boost
lagging European Union direct investment in Asia,
TAD/INF/PR/9608 - , 19/03/96
Also available in: French
Category: Press information 1996
|
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JETRO's annual
surveys
JETRO publishes an annual White Paper on International Trade and Foreign Direct
Investment (FDI). The paper includes JETRO's estimates for world trade and FDI
figures, as well as in-depth analysis of the world economy?and Japan's place in
it. Previous white papers have focused on such issues as intellectual property
rights, the impact of FTAs, overseas operations of Japanese firms as well as the
state of foreign direct investment in Japan. The paper is first published in
Japanese and later translated into English.
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WORLD INVESTMENT REPORT 2007
Transnational
Corporations, Extractive Industries and development
World
Investment Report 2007 (WIR07) is the seventeenth in a
series published by the United Nations Conference on Trade and
Development (UNCTAD). The Report analyses the latest
trends in foreign direct investment (FDI) and puts a special focus in
2007 on the role of transnational corporations (TNCs) in the extraction
of oil, gas, and metal minerals.
Higher prices for many
minerals have led to renewed investor interest in the extractive
industries. TNCs ( including some of the world´s largest
corporations) play a key role in the mining of metals and in the
extraction of oil and gas. Privately owned TNCs dominate the harvesting
of metal minerals, while State-owned companies from developing and
transition economies are key players in oil and gas. Many such
State-owned firms are emerging as TNCs in their own right.
Drawing on unique data,
the Report examines TNC involvement in the extraction
of mineral resources and maps the key countries and companies. It also
discusses how the forces driving investment change as raw materials
progress up the "value chain" to become finished products, and
as different types of companies participate. In view of recent
discussion of the so-called "resource curse," the Report
explores how the participation of TNCs may help or hinder
long-term, broad-based economic development in developing countries --
the best approach for reducing poverty and raising living standards. It
considers how energy and mineral extraction can help governments achieve
such aims.
In addition to the
general information on definitions and sources provided in
this year´s World Investment Report, more detailed
methodological notes for the data on FDI flows and stocks used
in the Report - including how they were obtained for each
economy - are available in electronic format only.
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WORLD INVESTMENT REPORT 2006
FDI from Developing and
Transition Economies: Implications for Development
This year´s World Investment Report focuses on the rise of
foreign direct investment (FDI) by transnational corporations (TNCs) from
developing and transition economies.
New sources of FDI are emerging among developing and transition economies.
This phenomenon has been particularly marked in the past ten years, and a
growing number of TNCs from these economies are emerging as major regional - or
sometimes even global - players. The new links these TNCs are forging with the
rest of the world will have far-reaching repercussions in shaping the global
economic landscape of the coming decades.
The Report examines the magnitude of this phenomenon and examines its drivers
and determinants, i.e.: what economic factors and policy developments lead firms
from developing countries to venture abroad? For low-income countries, FDI from
developing countries can be of great importance. In some of them, it accounts
for a significant share of all FDI flows. The Report also discusses the
development implications of the rise of these new sources of FDI, along with
policy responses, for both home and host developing countries.
As in previous years, the Report also presents the latest data on FDI and
traces the global and regional trends of FDI and international production by
TNCs. Global FDI inflows rose substantially in 2005. A major contributing factor
to this strong growth was the marked increase in the inflows to developed
countries. Rising global demand for commodities was reflected in the steep
increase in natural resource-related FDI, although the services sector continued
to be the major recipient of FDI. Among developing regions, Asia remained the
main magnet for FDI flows, followed by Latin America, where re-invested earnings
have played a major role. Africa´s share in world FDI inflows was still small,
but its FDI growth rate has nonetheless surpassed those of other developing
regions.
A substantial Statistical Annex is also included, with data
on FDI flows and stock for more than 200 economies. The PDF version of WIR05 and
the Statistical Annex are available in a CD-ROM.
METHODOLOGICAL NOTES: Definitions and
Sources. In addition to the general information on definitions
and sources provided in this year´s World Investment Report, more
detailed methodological notes for the data on FDI flows and stocks used in the
Report - including how they were obtained for each economy - are available in
electronic format only.
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WORLD INVESTMENT REPORT 2005
Transnational
Corporations and the Internationalization of R&D
World Investment Report 2005 (WIR05) presents the latest
trends in foreign direct investment (FDI) and explores the
internationalization of research and development by transnational
corporations (TNCs) along with the development implications of this
phenomenon.
Part One highlights recent global and regional
trends in FDI and international production by TNCs. Global FDI flows
resumed growth in 2004, but inflows continued to decline in developed
countries. This Part documents the fact that developing regions are
leading the recovery in FDI flows. It also documents different trends
and patterns between developed and developing countries as regards the
financing component of FDI (equity investment, reinvested earnings,
intra-company loans) as well as the modes of investment (mergers and
acquisitions, greenfield FDI).
Part Two assesses the implications of the recent
surge in R&D internationalization by TNCs. R&D activities at
growing levels of complexity are increasingly being established in
selected developing countries. In contrast to past experience, this
R&D often goes beyond local market adaptation and involves highly
complex activities targeted on global markets. The Report discusses the
driving forces behind this trend and considers how host as well as home
countries are affected. Finally, the Report analyses the need for active
government policies to enhance development benefits from TNCs´
internationalization of R&D. The Report underlines the importance of
coherent policies in order to create an environment conducive to
fruitful interaction between the R&D activities of TNCs and those of
domestic firms and institutions. A final chapter outlines the role of
international agreements in this area.
A substantial Statistical Annex is also included,
with data on FDI flows and stock for more than 200 economies. The PDF
version of WIR05 and the Statistical Annex are available in a CD-ROM.
METHODOLOGICAL NOTES: Definitions and Sources
In addition to the general information on definitions and
sources provided in this year´s World Investment Report,
more detailed methodological notes for the data on FDI flows
and stocks used in the Report - including how they were
obtained for each economy - are available in electronic format
only.
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WORLD INVESTMENT REPORT 2004
The Shift Towards Services
WIR04 presents the latest trends in foreign direct
investment and explores the shift towards services, with a
special analysis of offshoring service activities.
Part One discusses recent global and regional trends
in FDI and international production by TNCs. Global FDI flows
bottomed out in 2003, but there were some regional differences.
The sectoral pattern of FDI is shifting towards services.
Outward FDI from developing countries is becoming significant.
There is also optimism that inflows to these countries will
increase in 2004 and beyond.
Part Two deals with FDI in services - an important
but often neglected area of FDI in the context of development.
It examines the shift of FDI towards services with a focus on
the entry of TNCs into new service areas. Services FDI,
especially in intermediate and infrastructure services, affects
the economic performance of a host-country in all sectors. The
offshoring of corporate services is taking off rapidly, thanks
to advances in information and communications technologies.
However, the potential of such offshoring can only be harnessed
if countries adopt appropriate policies.
Part Three analyses key issues relating to national
and international policies on FDI in services. As many services
are deeply embedded in the social, cultural and political fabric
of host societies, the impact of FDI on those services could be
far-reaching. Therefore, national policies matter - not only to
attract FDI in services, but also to maximize its benefits and
minimize its potential negative impacts. The proliferation of
international investment agreements (IIAs) covering FDI in
services has resulted in a multifaceted and multilayered network
of international rules that affect national policy-making.
The WIR04 includes a substantial statistical annex,
which is also available on CD-ROM.
Quick Links: | World
Investment Directory Online |
|
WORLD INVESTMENT REPORT 2003
FDI Policies for Development: National and International Perspectives
The World Investment Report 2003 focuses on the foreign direct
investment (FDI) downturn, its reasons and the role of national policies
and international investment agreements (IIA) in attracting FDI to a
country and for a country to benefit from it.
Part One discusses the overall trends in FDI. FDI flows have dropped
drastically and no rebound is expected in 2003. The reasons for the
downturn are discussed from a global perspective, as well as by region -
developed countries, Africa, Asia and the Pacific, Latin America and the
Caribbean, and Central and Eastern Europe.
Part Two focuses on key issues that straddle national FDI policies
and international investment agreements with a view to bringing out the
development dimension. Special attention is given to the rise of IIAs,
the right to regulate, home country measures and corporate social
responsibility.
The report includes a statistical annex of over 100 pages.
Quick Links: | Press
Conference Opening Statements |
|
WORLD INVESTMENT REPORT 2002
Transnational Corporations and Export Competitiveness
The first principal finding is that foreign direct investment
(FDI) inflows in 2001 declined to $735 billion. This is less
than half the 2000 figure. Behind this decline is the slowdown
in the world economy and a weakening of business confidence,
both of which were accentuated by the September 11 events in the
United States, and both of which contributed to a sharp
reduction of cross border mergers and acquisitions that take
place predominantly between industrialized countries. In light
of the prolonged economic recession and the slow recovery of
business confidence, especially in the United States, UNCTAD
does not expect a rebound of FDI flows this year. Despite the
decline in FDI flows, the expansion of international production
continues, although at a slower pace. However, developments
differ markedly between various parts of the world. The FDI
downturn was concentrated in the developed countries (-59%),
with only modest declines in flows to developing countries
(-14%) and even a small increase in flows to Central and Eastern
Europe (2%). There were also significant variations within the
third world, with lower levels of inflows to Asia and Latin
America but an increase to Africa. Africa, however, still
remains a marginal recipient of FDI.
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WORLD INVESTMENT REPORT 2001
Promoting linkages
The World Investment Report 2001 examines the issue of linkages
between foreign affiliates of multinational enterprises and local
companies in developing countries. Worldwide FDI flows again reached
record levels in 2000. FDI remains the main driver of the expansion of
the international production system. Forging linkages between foreign
affiliates and domestic firms is a main challenge for policy-makers in
developing countries in order to benefit from FDI as much as possible.
WIR 2001 pays particular attention to this challenge. The objective is
not to raise linkages at any cost, but to use them to upgrade the
competitive capabilities of domestic enterprises. Fostering linkages is
an important means of diffusing knowledge, information and skills from a
foreign investor. In a technology and skill driven world, this can
contribute to increasing the efficiency and growth potential of the host
economy. WIR 2001 provides valuable information on country and company
experience in this field.
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WORLD INVESTMENT REPORT 2000
Cross-border Mergers and Acquisitions and Development
The contribution of foreign direct investment to
development is now widely recognized.
There is a perception, however, that this contribution
may be affected by the way investment enters a country. It
may come in the form of a new enterprise or the expansion
of an existing enterprise; it may also come through a
merger or an acquisition. Acquisitions, in particular,
arouse concerns, especially over employment, ownership and
market structure. And the concerns become urgent when the
host economy is a developing one.
Given the recent explosion in cross-border mergers and
acquisitions, UNCTAD´s 10th World Investment Report is a
highly timely and important document. This phenomenon
calls for just the sort of careful and dispassionate
analysis that has become the hallmark of the WIRs.
Cross-border mergers and acquisitions are a part of
economic life in a liberalizing and globalizing world. But
accepting a more open market in the interests of growth
and development does not mean relaxing the requirements of
public vigilance. On the contrary, a freer market - and
particularly the emerging global market for enterprises -
calls for greater vigilance as well as stronger and better
governance. To this end, World Investment Report 2000
provides us with a valuable resource.
Kofi A. Annan
Secretary-General of the United Nations
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WORLD INVESTMENT REPORT 1999
Foreign Direct Investment and the Challenge of Development
WIR 99 is the ninth Report in an annual series that has been recognized as
the most up-to-date and comprehensive source of information as well as analysis
regarding foreign direct investment (FDI).
Part I, entitled Trends,examines the most recent global and regional trends
in FDI. It describes the world´s 100 largest TNCs, the 50 largest TNCs in
developing countries and the 25 largest TNCs in Central Europe; analyses the
momentum for an increasing globalization of economies through FDI and the
activities of TNCs; and explores the growing importance of mergers and
acquisitions in fuelling FDI flows. It also reviews recent developments in
bilateral and regional investment agreements including the reasons for the end
of negotiations of the Multilateral Agreement on Investment.
Part II, entitled FDI and the Challenge of Development, looks at the impact
of FDI on key objectives of economic development: increasing financial resources
for investment, enhancing technological capabilities, boosting export
competitiveness, generating and upgrading employment, and protecting the
environment.
The Report concludes that although FDI can yield major economic benefits for
the host country, such benefits can be enhanced through appropriate policies.
Governments therefore have an important role to play in creating the conditions
that attract FDI and in maximizing the positive contribution that FDI can make
to growth and development.
|
1998 -
Trends and Determinants
|
WORLD INVESTMENT REPORT 1997
Transnational corporations, market structure and
competition policy
Improving economic efficiency by making markets more competitive -- and thereby
serving development -- is subject to the same need to make choices. Given the particular
characteristics of developing countries -- low income levels, skewed distribution of wealth,
lack of infrastructure, low levels of education, asymmetries in information, to mention a few -
- the incidence of conflicts between market outcomes and competing objectives is often more
frequent in these countries.
For example, where foreign exchange is temporarily in limited supply, certain import
restrictions might be needed -- thus limiting contestability -- to ensure that critical imports are
not disrupted, e.g.,
that foreign exchange reserves are used for machine parts instead of luxury goods. Or, where a
country is characterized by dispersed rural communities, the market will often not provide
these with certain basic services (such as roads, telecommunications services and railways); in
these cases, governments might need to ensure that certain services reach segments of the
national market which otherwise could not support such services. They could do so, for instance,
by providing the services through state-owned enterprises or, where private operators are
involved, by providing these with market power so that services in less-economically viable
markets can be cross-subsidized from profits earned in larger segments of the market.48 A
policy alternative to consider in such a case would be more direct government involvement in
the form of subsidized provision of the services in question. The decision in this case -- whether
to allow concentration combined with cross subsidization or to provide subsidies -- would
involve a careful consideration of the quite different trade-offs associated with these two options
(possibly less efficiency in the market, on the one hand, versus a direct budgetary expense on
the other).
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1996 -
Investment, Trade and International Policy Agreements
1995 -
TNCs and Competitiveness
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WORLD INVESTMENT REPORT 1994
Transnational corporations, employment and the workplace
The World Investment Report 1994 analyses the impact of an integrated
international production system on the quantity and quality of employment, human
resource development and, more generally, to the organization of work.
The report includes a statistical annex with FDI statistics and other related
indicators.
Policy makers and trade union leaders must find innovative ways to respond to the ongoing
changes in the international economy. Not only must they address the many new issues raised
by integration at the level of production; but, in a more open and integrated world
economy, policy makers must coordinate more carefully the traditional instruments for
domestic economic management with policies relating to international economic relations,
including, in particular, foreign direct investment (FDI) and other forms of TNC
activity.
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WORLD INVESTMENT REPORT 1993
Transnational Corporations and Integrated International
Production
The World Investment Report 1993 analyses the evolving
strategies and changing organizational structures of TNCs, and
the implications of the increasing functional, cross-national
integration of their activities for the location of
international production. In spite of an overall decline in
world-wide flows of foreign direct investment in the early
1990s, there are many features of the world economic environment
pointing to a continuing and important role for transnational
corporations.
The report includes a statistical annex with FDI statistics
and other related indicators.
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WORLD INVESTMENT REPORT 1992
Transnational Corporations as Engines of Growth
The World Investment Report 1992 analyses the relationship between TNCs and
economic growth. Since the early 1980s, world investment flows have been
expanding rapidly, much faster than other key economic variables such as world
trade and world output.
A number of major new developments in the global
economic situation have placed foreign direct investment in a central position
to influence the pace and the nature of economic growth in most countries.
Finally, developing countries themselves have implemented notable and, in many
cases, dramatic policy changes, in order to open their economies to greater
contributions by transnational corporations.
The report includes a statistical annex with FDI statistics and other related
indicators.
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WORLD INVESTMENT REPORT 1991
The Triad In Foreign Direct Investment
This first volume in the World Investment Report series analyses the
Triad (Japan, the European Community and the United States) in terms of
foreign direct investment.
It looks at the role transnational corporations play in promoting
regional economic integration around the three poles of the Triad,
describes the linkages between foreign direct investment and
trade, technology and financial flows, and
highlights policy implications for developing countries and the
international community.
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Foreign Direct Investment in
Africa: Performance and Potential, 1999
Many African countries have already done much to create
a more business-friendly environment to promote local investment
as well as foreign direct investment, and many have made impressive
progress towards political and economic stability. In their efforts to
revive economic activity they have scaled down bureaucratic obstacles
and interventions in their economies, embarked on privatization
programmes and are putting in place pro-active investment measures.
These efforts -- helped by other factors such as high commodity prices
-- have borne fruit in recent years, leading to a turnaround after a
long period of economic contraction, in many countries. As a result,
for the first time since the early 1980s, per capita gross domestic product
of the continent as a whole has grown considerably for a number of
consecutive years since 1994. Some countries that not so long ago
were being torn apart by civil unrest or war have recovered and are...
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OECD -
1999
Southeast Asia: The role of
foreign direct investment policies in development
At a time of continuing financial crisis in Asia, the question of the appropriate policies for
recovery and for future sustainable development is paramount. One area of particular importance is the
treatment of foreign investors. Foreign direct investment (FDI) has played a leading role in many of the
economies of the region, particularly in export sectors, and has been a vital source of foreign capital during
the crisis. The four countries reviewed in this study1 — Indonesia, Malaysia, the Philippines and Thailand
(referred to hereinafter as the ASEAN4) — have all to varying degrees welcomed inward investment for its
contribution to exports. As a result, although only a small share of total investment or employment in each
economy, FDI has been a key factor driving export-led growth in Southeast Asia. Foreign firms have by
no means been the only actors, but they have played a leading role in those sectors with the fastest export
growth such as electronics. Through such investment, host economies have rapidly been transformed from
agriculture and the exploitation of raw materials into major producers and exporters of manufactured
goods.
For many years, Malaysia and Thailand were among the most open in the developing world to
foreign investment. They were quick to recognise the powerful role that foreign investors could play in
fuelling export-led growth, and they were well-placed to attract such investment during the years of
regional structural adjustment in the late 1980s. Partly as a result of FDI inflows, the two countries were
among the world’s fastest growing economies before the crisis. At the same time, however, the years
leading up to the crisis revealed a growing disquiet in some ASEAN countries about their continuing
ability to attract FDI in the face of competition from countries such as China. Related to the issue of
possible investment diversion, questions were also raised about whether FDI inflows were contributing
sufficiently to technology transfer and industrial upgrading.
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From ECLAC:
Foreign Investment
in Latin America and the Caribbean
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| 1998 Report on Foreign Investments in Latin America and the Caribbean |
| Survey of OECD work on
International Investment 1998/1 |
United Nations University
World Institute for Development Economic Research:
RP2006/35
Valpy FitzGerald: International
Risk Tolerance, Capital Market Failure and Capital Flows to Emerging Markets
(PDF 285KB)
RP2005/31
Henrik Hansen and John Rand:
On
the Causal Links between FDI and Growth in Developing Countries
(PDF 132KB)
We analyse the Granger causal relationships between foreign direct investment (FDI)
and GDP in a sample of 31 developing countries covering 31 years. Using estimators
for heterogeneous panel data we find bi-directional causality between the FDI-to-GDP
ratio and the level of GDP. FDI has a lasting impact on GDP, while GDP has no longrun
impact on the FDI-to-GDP ratio. In that sense FDI causes growth. Furthermore, in a
model for GDP and FDI as a fraction of gross capital formation (GCF) we also find
long-run effects from FDI to GDP. This finding may be interpreted as evidence in
favour of the hypotheses that FDI has an impact on GDP via knowledge transfers and
adoption of new technology.
RP2005/26
Roghieh Gholami, Sang-Yong Tom Lee and Almas Heshmati: The
Causal Relationship between ICT and FDI (PDF
208KB)
RP2005/25
Abdur Chowdhury and George Mavrotas:
FDI
and Growth: A Causal Relationship
(PDF 80KB)
The paper examines the causal relationship between FDI and economic growth by using
an innovative econometric methodology to study the direction of causality between the
two variables. We apply our methodology, based on the Toda-Yamamoto test for
causality, to time-series data covering the period 1969-2000 for three developing
countries, namely Chile, Malaysia and Thailand, all of them major recipients of FDI
with a different history of macroeconomic episodes, policy regimes and growth
patterns. Our empirical findings clearly suggest that it is GDP that causes FDI in the case
of Chile and not vice versa, while for both Malaysia and Thailand, there is a strong
evidence of a bi-directional causality between the two variables. The robustness of the
above findings is confirmed by the use of a bootstrap test employed to test the validity of
our results.
RP2005/24
Elizabeth Asiedu: Foreign
Direct Investment in Africa: The Role of Natural Resources, Market Size,
Government Policy, Institutions and Political Instability (PDF 148KB)
RP2004/64
Yuqing Xing and Guanghua Wan: Exchange
Rates and Competition for FDI (PDF 120KB)
DP2003/75
Jonathan P. Thomas: Bankruptcy
Proceedings for Sovereign State Insolvency and their Effect on Capital
Flows (PDF 280KB)
DP2003/45
Tony Addison and Almas Heshmati: The
New Global Determinants of FDI Flows to Developing Countries: The
Importance of ICT and Democratization (PDF
274KB)
DP2003/43
Matthew Odedokun: The
‘Pull’ and ‘Push’ Factors in North-South Private Capital Flows:
Conceptual Issues and Empirical Estimates (PDF
322KB)
DP2003/30
Roghieh Gholami, Sang-Yong Tom Lee and Almas Heshmati: The
Causal Relationship between Information and Communication Technology and
Foreign Direct Investment (PDF 215KB)
DP2003/02
Oluyele Akinkugbe: Flow
of Foreign Direct Investment to Hitherto Neglected Developing Countries
(PDF 243KB)
DP2003/01
Matthew Odedokun: A
Holistic Perception of Foreign Financing of Developing Countries’
Private Sectors: Analysis and Description of Structure and Trends
(PDF 359KB)
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