Description: FDI Trends : Looking Beyond the Current Gloom in Developing Countries

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FDI Trends : Looking Beyond the Current Gloom in Developing Countries

The fall in foreign direct investment (FDI) since 1999 and China's growing share, worry most developing countries. But an in-depth look reveals new and promising trends. The decline is largely a one-time adjustment following the privatization...

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Bibliographic Details
Main Authors:	Palmade, Vincent, Anayiotas, Andrea
Language:	English
Published:	World Bank, Washington, DC 2012
Subjects:	FOREIGN DIRECT INVESTMENTS DEVELOPING COUNTRIES GROWTH PATTERNS PRIVATIZATION ADJUSTMENT PROCESS SECTORAL ADJUSTMENT LABOR INTENSIVE INDUSTRIES MANUFACTURING CUSTOMS ADMINISTRATION LABOR MARKET CHARACTERISTICS RETAIL TRADE ACCESS TO LAND TAXATION MICROECONOMICS DOMESTIC INVESTMENT BANKS BUSINESS COMPARATIVE ADVANTAGES CONSUMERS ECO ECONOMIC CONDITIONS ECONOMIC SECTORS EMPLOYMENT EXPORTS FOREIGN DIRECT INVESTMENT FOREIGN INVESTORS GDP HYPERMARKETS INNOVATIONS INVESTMENT CLIMATE INVESTMENT FLOWS LABOR MARKET LABOR PRODUCTIVITY LAND MARKETS MACROECONOMIC STABILITY MONOPOLIES NATURAL MONOPOLIES NATURAL RESOURCES PETROLEUM POLITICAL ECONOMY PRIVATE INVESTORS PRIVATE SECTOR PRODUCTIVITY PRODUCTIVITY GROWTH PUBLIC POLICY PUBLIC POLICY INNOVATIONS REGULATORY BURDEN REGULATORY ENVIRONMENT RETAIL SERVICE PROVIDERS WHOLESALERS
Online Access:	http://documents.worldbank.org/curated/en/2004/09/5496338/fdi-trends-looking-beyond-current-gloom-developing-countries http://hdl.handle.net/10986/11259

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Summary:	The fall in foreign direct investment (FDI) since 1999 and China's growing share, worry most developing countries. But an in-depth look reveals new and promising trends. The decline is largely a one-time adjustment following the privatization boom of the 1990s. FDI is coming from more countries - and going to more sectors. The conditions for attracting FDI vary by sector: in labor-intensive manufacturing, for example, efficient customs, and flexible labor markets are key, while in retail, access to land and equal enforcement of tax rules matter most. Sorting out the microeconomic issues by sector will be good, not only for FDI, but also for domestic investors.