World investment report 2000 pdf

Foreign direct investment FDI continues to expand rapidly, enlarging the role of international production in the world economy.

FDI flows are, however, expected to decline in The global expansion of investment flows is driven by more than 60, transnational corporations TNCs with over , affiliates abroad. A mapping of FDI inflows indicates the extent to which host countries are integrating into the globalizing world economy. It also indicates indirectly the distribution of benefits from FDI.

The mapping of outward FDI shows which countries control the global distribution of this investment. Understanding the pattern of FDI flows and stocks and its driving forces is important for the formulation and implementation of economic strategies and policies.

A comparison of the world maps of inward and outward FDI in and reveals that FDI reaches many more countries in a substantial manner than in the past. The concentration of FDI reflects the concentration of economic activity more generally. Thus, exports, domestic investment and technology payments are also highly concentrated. Richer and more competitive economies naturally receive and send more international direct investment than other economies.

To gauge the underlying attractiveness of a country for international investors, it is useful to take its relative economic size and strength into account. The rapidly changing international setting is changing the drivers of FDI. While the main traditional factors driving FDI location — large markets, the possession of natural resources and access to low-cost unskilled or semi-skilled labour — remain relevant, they are diminishing in importance, particularly for the most dynamic industries and functions.

As trade barriers come down and regional links grow, the significance of many national markets also diminishes. Primary industries account for a shrinking share of industrial activity, and natural resources per se play a smaller role in attracting FDI for many countries.

The location of TNC activity instead increasingly reflects three developments: policy liberalization, technical progress and evolving corporate strategies. Changes in the international policy environment have a strong impact on locational decisions. The growing spread and mobility of TNCs are making local conditions more, not less, important. The increased freedom for factors and functions to move does not mean that international production spreads equally to all locations.

Thus, FDI tends to be fairly concentrated geographically within countries, responding to the agglomeration economies that also influence domestic firms. These economies relate to proximity to markets and factors of production, and the availability of specialized skills, innovatory capabilities, suppliers and institutions. Intensifying competition forces firms to specialize more in their core competencies and rely more heavily on links with external partners suppliers, buyers or even competitors than in the past.

Transnational Corporations, Agricultural Production and Development. Transnational Corporations, and the Infrastructure Challenge. Transnational Corporations, Extractive Industries and Development.

The Shift Towards Services. Promoting Linkages. Foreign Direct Investment and the Challenge of Development. Trends and Determinants. This Report is only available in PDF.

Please click here to download this Report. World Investment Report Cross-border Mergers and Acquisitions and Development The contribution of foreign direct investment to development is now widely recognized.