Global FDI flows declined significantly in 2012, dropping 18% to an estimated $1.3 trillion. This decline reversed the recovery that began in 2010-2011. Developing countries saw more resilient FDI, absorbing $130 billion more than developed nations for the first time. Macroeconomic and policy uncertainties continued to dampen investor confidence, though FDI may rise moderately in 2013-2014 if the global economy improves. Significant risks to a recovery remain, however.
Global foreign direct investment (FDI) flows exceeded pre-crisis levels in 2011, rising 17% to reach $1.5 trillion according to UNCTAD estimates. While FDI increased across developed, developing, and transition economies, the reasons differed by region. Developed economies saw an 18% rise driven mainly by cross-border mergers and acquisitions rather than new investment. Developing/transition economies accounted for half of FDI, with a record $755 billion to Latin America and transition economies fueling their growth. Overall, recovery was mixed as greenfield investments declined while mergers and acquisitions rose sharply, though both slowed in the final quarter indicating continued risks in 2012.
The state of finance for development countries, 2014Dr Lendy Spires
This report analyzes the scale of financial resources available to developing countries in 2014. It finds that losses of resources have exceeded inflows since 2008, with losses reaching over 10% of GDP. The largest losses come from illicit financial flows, profits taken out by foreign investors, and lending to rich countries. While domestic resources, FDI, and remittances are substantial, aid and portfolio investments have declined as a share of developing country GDP. LICs face significant losses from tax avoidance, repatriated profits, and debt repayments, jeopardizing their development progress.
Human resource development and foreign remittances : The case of South Asia. The paper explains links between HRD, migration and remittances in Afghanistan, Bangladesh, Bhutan, Nepal, India, Pakistan, Sri Lanka, and Maldives
Foreign Direct Investment in the United States 2014 Reportgccrowe
- The document summarizes foreign direct investment in the United States in 2014. It reports that FDI in the US totaled nearly $2.8 trillion through 2013 and that foreign firms invested $236 billion in 2013, a 35% increase from 2012.
- Japan was the largest foreign investor in the US in 2013, investing nearly $45 billion. The top 5 investor countries - Japan, the UK, Luxembourg, Canada, and Switzerland - accounted for over half of total FDI inflows in 2013.
- Europe is the largest regional investor in the US, providing over two-thirds of all cumulative FDI through 2013, led by the UK, Netherlands, Germany, and France.
Twin deficits refer to large fiscal and current account deficits. India has struggled with twin deficits, experiencing crises in 1991. High fiscal deficits are caused by falling revenues and rising welfare spending. India ran high current account deficits due to rising oil and gold imports and weak exports. This depleted reserves and weakened the rupee. To reduce deficits, India increased taxes on gold, deregulated oil prices, and attracted more foreign direct investment. Remittances from Indians abroad also helped finance the current account. Maintaining fiscal discipline and addressing the trade imbalance in oil and gold are keys to managing twin deficits in India.
- Prior to 2003, Georgia had a failing economy with widespread corruption and bureaucracy, low foreign investment, high unemployment, and subsistence-level agriculture.
- After reforms beginning in 2004 under President Saakashvili, Georgia experienced high GDP growth rates over 8% annually through 2008, increased foreign investment and exports, and a growing middle class.
- Key reforms included aggressive privatization, tax code simplification, banking sector growth, trade liberalization, reduced bureaucracy, and increased economic freedom, transforming Georgia into one of the freest economies globally according to indexes.
Global foreign direct investment (FDI) flows exceeded pre-crisis levels in 2011, rising 17% to reach $1.5 trillion according to UNCTAD estimates. While FDI increased across developed, developing, and transition economies, the reasons differed by region. Developed economies saw an 18% rise driven mainly by cross-border mergers and acquisitions rather than new investment. Developing/transition economies accounted for half of FDI, with a record $755 billion to Latin America and transition economies fueling their growth. Overall, recovery was mixed as greenfield investments declined while mergers and acquisitions rose sharply, though both slowed in the final quarter indicating continued risks in 2012.
The state of finance for development countries, 2014Dr Lendy Spires
This report analyzes the scale of financial resources available to developing countries in 2014. It finds that losses of resources have exceeded inflows since 2008, with losses reaching over 10% of GDP. The largest losses come from illicit financial flows, profits taken out by foreign investors, and lending to rich countries. While domestic resources, FDI, and remittances are substantial, aid and portfolio investments have declined as a share of developing country GDP. LICs face significant losses from tax avoidance, repatriated profits, and debt repayments, jeopardizing their development progress.
Human resource development and foreign remittances : The case of South Asia. The paper explains links between HRD, migration and remittances in Afghanistan, Bangladesh, Bhutan, Nepal, India, Pakistan, Sri Lanka, and Maldives
Foreign Direct Investment in the United States 2014 Reportgccrowe
- The document summarizes foreign direct investment in the United States in 2014. It reports that FDI in the US totaled nearly $2.8 trillion through 2013 and that foreign firms invested $236 billion in 2013, a 35% increase from 2012.
- Japan was the largest foreign investor in the US in 2013, investing nearly $45 billion. The top 5 investor countries - Japan, the UK, Luxembourg, Canada, and Switzerland - accounted for over half of total FDI inflows in 2013.
- Europe is the largest regional investor in the US, providing over two-thirds of all cumulative FDI through 2013, led by the UK, Netherlands, Germany, and France.
Twin deficits refer to large fiscal and current account deficits. India has struggled with twin deficits, experiencing crises in 1991. High fiscal deficits are caused by falling revenues and rising welfare spending. India ran high current account deficits due to rising oil and gold imports and weak exports. This depleted reserves and weakened the rupee. To reduce deficits, India increased taxes on gold, deregulated oil prices, and attracted more foreign direct investment. Remittances from Indians abroad also helped finance the current account. Maintaining fiscal discipline and addressing the trade imbalance in oil and gold are keys to managing twin deficits in India.
- Prior to 2003, Georgia had a failing economy with widespread corruption and bureaucracy, low foreign investment, high unemployment, and subsistence-level agriculture.
- After reforms beginning in 2004 under President Saakashvili, Georgia experienced high GDP growth rates over 8% annually through 2008, increased foreign investment and exports, and a growing middle class.
- Key reforms included aggressive privatization, tax code simplification, banking sector growth, trade liberalization, reduced bureaucracy, and increased economic freedom, transforming Georgia into one of the freest economies globally according to indexes.
This document discusses the impact of remittances on household welfare in Pakistan. It finds that a reduction in remittances would decrease GDP, investment, and household consumption, thereby increasing poverty. Households that receive remittances have a 12.7% lower probability of becoming poor. Poverty and inequality also decline for households receiving remittances, with poverty declining by 7.8% and inequality by 4.8%. While remittances play an important role, the key challenge is encouraging more remittances through formal channels to spur productive investment and development.
Research on relationship between china and ghana trade and foreign direct inv...Alexander Decker
This document discusses research on the relationship between China and Ghana in terms of trade and foreign direct investment. It finds that China is the second largest source of trade and foreign direct investment for Ghana. The document provides background on foreign direct investment in Africa, noting that while countries have worked to improve their investment climates, the expected surge in FDI has not occurred due to negative perceptions of risks. Determinants of FDI in Africa discussed include natural resources, market size, labor costs, trade openness, taxes, incentives, political stability, and infrastructure.
The document discusses two main ways that international financial institutions can adapt to increasing private capital flows and a greater role of the private sector in development:
1. Help governments create conditions for market-oriented growth through macroeconomic stability, infrastructure development, and other reforms.
2. Become direct participants in private sector investment by partnering with private investors, complementing private finance rather than displacing it, and applying private sector approaches while still pursuing development goals. This would require new flexibility, expertise in assessing commercial risk, and adapting procedures. Partnering with IFIs could benefit private investors through the IFIs' development objectives and experience in recipient countries.
FDI fluctuations followed by GDP fluctuations in Kosovo and favoring particul...nakije.kida
This paper examines the main trends of FDI (Foreign Direct Investment) in Kosovo. Kosovo
as a country that had just emerged from war in 1999, with frequent changes of laws and
adoption of economic liberalization measures made very large strides in democracy and
international recognition of statehood. Fluctuations of FDI in Kosovo in the past 12 years link
these directly in the two macroeconomic indicators clearly express how important is the
stability of the country. GDP growth rate in Kosovo with a great opportunity for investors, one
more chance for the local population to find a new job. The perception of investors that there
is no risk to invest in Kosovo increased FDI flows. Success of Kosovo to boost foreign
investment becomes accessible if not delayed accession to the EU. All these factors have led
to a satisfactory level of the FDI in Kosovo, but economic and political context is crucial.
Kosovo has significant structural mismatch economy compared to countries in the region. This
information allows us to create a more favorable institutional framework for investment,
facilitates an investor to take a decision to invest quickly. From an investment perspective in
Kosovo economic structure, trends seen that capital to invest in some sectors. Investments in
the industrial sector (manufacturing) in mining, energy, construction, trade and services have
been attractive to foreign investors.
Foreign Remittances and their Impact on the Economy of PakistanMuhammad Umair
This document discusses foreign remittances to Pakistan from 1947-2014. It notes that remittances totaled over $500 billion worldwide in 2012, with Pakistan receiving $14 billion, and provides statistics on remittance amounts over time. Remittances have significantly impacted Pakistan's economy, helping to reduce its trade and budget deficits while boosting consumption, investment, and GDP. However, over-reliance on temporary remittances is not a sustainable economic model for Pakistan.
Current account deficit and indian economy b.v.raghunandanSVS College
- The document discusses India's current account deficit (CAD) and its effects on the Indian economy.
- India has been facing a growing CAD in recent years due to rising imports, especially of crude oil and gold, as well as more Indians traveling abroad. This is putting pressure on foreign exchange reserves and investment.
- The genesis of India's trade deficits began under British colonial rule when India was converted into an exporter of raw materials and importer of manufactured goods from Britain. Post-independence policies also contributed by focusing on a public sector model and suppressing private industry and trade.
Remittances and Household Welfare:
A Case Study of Pakistan
by
Vaqar Ahmed, Guntur Sugiyarto, and Shikha Jha
Sustainable Development Policy Institute
Asian Development Bank
This document discusses the growth of international capital flows over the past 50 years and debates around the risks and benefits of freely moving capital. It notes that the collapse of the Soviet Union in 1991 and subsequent liberalization policies in post-Soviet states led to increased foreign direct investment inflows to those countries as they sought to attract outside investors. The end of communist regimes in other parts of the world, like Latin America, also led countries there to abandon communism and liberalize their trade policies and open their borders to foreign capital. Overall, political changes and liberalization efforts have contributed significantly to the rapid growth of international capital flows globally since the 1990s.
Mena economy, investments and the specter of the arab springteam-abr
The obstinate political instability has weakened the macroeconomic fundamentals of the MENA region.
Investor confidence has been severely impacted resulting in a decline in the FDI received by the MENA region.
There is an urgent need for structural business and regulatory reforms, infrastructure development, and improvement of the education system, for the region to recover from the Arab Spring and regain its position as an attractive investment destination.
- The document analyzes the relationship between foreign direct investment (FDI) inflows and gross domestic product (GDP) in India from 1990 to 2012.
- It finds a strong positive correlation (r=0.859) between FDI inflows and GDP over the period studied, indicating FDI causes growth of India's GDP to a large extent.
- The study also aims to determine the impact of FDI on per capita GDP in India and finds a strong positive correlation, supporting the hypothesis that there is a relationship between FDI inflows and increases in per capita GDP.
- In conclusion, the study recommends improving India's investment climate to strengthen its position in the globalized economy by enhancing competitiveness
This document provides an overview of foreign direct investment (FDI), including definitions, types, methods, incentives, importance, and barriers. It also discusses FDI trends in major economies like China, India, the US, and Canada. The key types of FDI are horizontal (duplicating home activities abroad), vertical (moving across value chains), and platform (exporting to a third country from the destination). Countries use various incentives to attract FDI and its inflow is associated with economic growth. India has been ranked among the top destinations for FDI and allows 51% FDI in multi-brand retail and 100% in single-brand retail, subject to certain conditions.
Informe elaborado por Roy Davidson para EIBTM sustentado en el análisis de estudios y encuestas realizadas en nuestro sector a nivel mundial. La conclusión en el 2013: optimismo moderado.
This report draws on over 10,000 interviews with business leaders as well as economic forecast data to better understand the growth opportunities and challenges facing dynamic companies over the next 12 months.
The document discusses India's current account deficit (CAD), which was $22.8 billion or 4.9% of GDP in 2013. A large CAD can drain foreign exchange reserves and cause the currency to depreciate. India's CAD is driven by gold and oil imports. Though coal imports have increased due to domestic shortages, reducing oil and coal imports is not feasible. Exports have fallen while FDI has declined from $35.12 billion in 2011 to $22.42 billion in 2012. A large CAD can force India to raise interest rates to attract foreign investment. The RBI has taken steps like raising FII limits and removing lock-in periods on government bonds to attract foreign inflows and contain the CAD
Capital Inflows and Economic Growth A Comperative Studyiosrjce
This study examines the impact of capital inflows on economic growth of developing* economies; the
case of Nigeria Ghana and India from 1986-2012. This is necessitated by the doubts being raised as whether the
huge inflows of foreign capita! in developing economies over the years have transmitted to real economic
growth. Augmented Dickey Fuller unit root test was employed to evaluate the stationarity of the data, while
Johansen Co-integration was used to estimate the long-run equilibrium relationship among the variables. The
casual relationship was tested using Granger Causality, and Ordinary Least Square method was used to
estimate the model. The finding reveals that capital inflows have significant impact on the economic growth of
the three countries. In Nigeria and Ghana, foreign direct and portfolio investment and foreign borrowings have
significant and positive impact on economic growth. Workers' remittances significantly and positively related to
the economic growth of the three countries. The enabling environment should be created in the Developing
Countries to encourage more inflow of foreign investments and workers remittances while India specifically
should channel their foreign aids to productive ends. This will help in dosing the savings-investment gap and
encourage economic growth in these countries. The study signifies that capital inflows is indispensable in
dosing the savings-investment gap required for economic growth of developing countries.
United Nations Conference on Trade and Development (UNCTAD)Suraj Sudheer
UNCTAD is a permanent intergovernmental body of the UN that deals with trade, investment, and development. It has headquarters in Geneva and offices in New York and Addis Ababa. UNCTAD functions as a forum for government deliberations, undertakes research and policy analysis, and provides technical assistance to developing countries. Its main activities include work on trade and commodities, investment, macroeconomic policies, transport, and special programs to support least developed countries. It is organized with a Conference, Trade and Development Board, Commissions on key issues, expert meetings, and a Secretariat led by a Secretary-General.
- UNCTAD was established in 1964 as the principal organ of the United Nations General Assembly to deal with trade, investment, and development issues. It has 194 member states and is headquartered in Geneva, Switzerland.
- In the early 1960s, concerns about the place of developing countries in international trade led to calls for a UN conference, and the first UNCTAD conference was held in 1964 to address these issues.
- UNCTAD's primary objectives are to formulate policies relating to all aspects of development including trade, aid, transport, finance and technology. It ordinarily meets every four years.
This document discusses the impact of remittances on household welfare in Pakistan. It finds that a reduction in remittances would decrease GDP, investment, and household consumption, thereby increasing poverty. Households that receive remittances have a 12.7% lower probability of becoming poor. Poverty and inequality also decline for households receiving remittances, with poverty declining by 7.8% and inequality by 4.8%. While remittances play an important role, the key challenge is encouraging more remittances through formal channels to spur productive investment and development.
Research on relationship between china and ghana trade and foreign direct inv...Alexander Decker
This document discusses research on the relationship between China and Ghana in terms of trade and foreign direct investment. It finds that China is the second largest source of trade and foreign direct investment for Ghana. The document provides background on foreign direct investment in Africa, noting that while countries have worked to improve their investment climates, the expected surge in FDI has not occurred due to negative perceptions of risks. Determinants of FDI in Africa discussed include natural resources, market size, labor costs, trade openness, taxes, incentives, political stability, and infrastructure.
The document discusses two main ways that international financial institutions can adapt to increasing private capital flows and a greater role of the private sector in development:
1. Help governments create conditions for market-oriented growth through macroeconomic stability, infrastructure development, and other reforms.
2. Become direct participants in private sector investment by partnering with private investors, complementing private finance rather than displacing it, and applying private sector approaches while still pursuing development goals. This would require new flexibility, expertise in assessing commercial risk, and adapting procedures. Partnering with IFIs could benefit private investors through the IFIs' development objectives and experience in recipient countries.
FDI fluctuations followed by GDP fluctuations in Kosovo and favoring particul...nakije.kida
This paper examines the main trends of FDI (Foreign Direct Investment) in Kosovo. Kosovo
as a country that had just emerged from war in 1999, with frequent changes of laws and
adoption of economic liberalization measures made very large strides in democracy and
international recognition of statehood. Fluctuations of FDI in Kosovo in the past 12 years link
these directly in the two macroeconomic indicators clearly express how important is the
stability of the country. GDP growth rate in Kosovo with a great opportunity for investors, one
more chance for the local population to find a new job. The perception of investors that there
is no risk to invest in Kosovo increased FDI flows. Success of Kosovo to boost foreign
investment becomes accessible if not delayed accession to the EU. All these factors have led
to a satisfactory level of the FDI in Kosovo, but economic and political context is crucial.
Kosovo has significant structural mismatch economy compared to countries in the region. This
information allows us to create a more favorable institutional framework for investment,
facilitates an investor to take a decision to invest quickly. From an investment perspective in
Kosovo economic structure, trends seen that capital to invest in some sectors. Investments in
the industrial sector (manufacturing) in mining, energy, construction, trade and services have
been attractive to foreign investors.
Foreign Remittances and their Impact on the Economy of PakistanMuhammad Umair
This document discusses foreign remittances to Pakistan from 1947-2014. It notes that remittances totaled over $500 billion worldwide in 2012, with Pakistan receiving $14 billion, and provides statistics on remittance amounts over time. Remittances have significantly impacted Pakistan's economy, helping to reduce its trade and budget deficits while boosting consumption, investment, and GDP. However, over-reliance on temporary remittances is not a sustainable economic model for Pakistan.
Current account deficit and indian economy b.v.raghunandanSVS College
- The document discusses India's current account deficit (CAD) and its effects on the Indian economy.
- India has been facing a growing CAD in recent years due to rising imports, especially of crude oil and gold, as well as more Indians traveling abroad. This is putting pressure on foreign exchange reserves and investment.
- The genesis of India's trade deficits began under British colonial rule when India was converted into an exporter of raw materials and importer of manufactured goods from Britain. Post-independence policies also contributed by focusing on a public sector model and suppressing private industry and trade.
Remittances and Household Welfare:
A Case Study of Pakistan
by
Vaqar Ahmed, Guntur Sugiyarto, and Shikha Jha
Sustainable Development Policy Institute
Asian Development Bank
This document discusses the growth of international capital flows over the past 50 years and debates around the risks and benefits of freely moving capital. It notes that the collapse of the Soviet Union in 1991 and subsequent liberalization policies in post-Soviet states led to increased foreign direct investment inflows to those countries as they sought to attract outside investors. The end of communist regimes in other parts of the world, like Latin America, also led countries there to abandon communism and liberalize their trade policies and open their borders to foreign capital. Overall, political changes and liberalization efforts have contributed significantly to the rapid growth of international capital flows globally since the 1990s.
Mena economy, investments and the specter of the arab springteam-abr
The obstinate political instability has weakened the macroeconomic fundamentals of the MENA region.
Investor confidence has been severely impacted resulting in a decline in the FDI received by the MENA region.
There is an urgent need for structural business and regulatory reforms, infrastructure development, and improvement of the education system, for the region to recover from the Arab Spring and regain its position as an attractive investment destination.
- The document analyzes the relationship between foreign direct investment (FDI) inflows and gross domestic product (GDP) in India from 1990 to 2012.
- It finds a strong positive correlation (r=0.859) between FDI inflows and GDP over the period studied, indicating FDI causes growth of India's GDP to a large extent.
- The study also aims to determine the impact of FDI on per capita GDP in India and finds a strong positive correlation, supporting the hypothesis that there is a relationship between FDI inflows and increases in per capita GDP.
- In conclusion, the study recommends improving India's investment climate to strengthen its position in the globalized economy by enhancing competitiveness
This document provides an overview of foreign direct investment (FDI), including definitions, types, methods, incentives, importance, and barriers. It also discusses FDI trends in major economies like China, India, the US, and Canada. The key types of FDI are horizontal (duplicating home activities abroad), vertical (moving across value chains), and platform (exporting to a third country from the destination). Countries use various incentives to attract FDI and its inflow is associated with economic growth. India has been ranked among the top destinations for FDI and allows 51% FDI in multi-brand retail and 100% in single-brand retail, subject to certain conditions.
Informe elaborado por Roy Davidson para EIBTM sustentado en el análisis de estudios y encuestas realizadas en nuestro sector a nivel mundial. La conclusión en el 2013: optimismo moderado.
This report draws on over 10,000 interviews with business leaders as well as economic forecast data to better understand the growth opportunities and challenges facing dynamic companies over the next 12 months.
The document discusses India's current account deficit (CAD), which was $22.8 billion or 4.9% of GDP in 2013. A large CAD can drain foreign exchange reserves and cause the currency to depreciate. India's CAD is driven by gold and oil imports. Though coal imports have increased due to domestic shortages, reducing oil and coal imports is not feasible. Exports have fallen while FDI has declined from $35.12 billion in 2011 to $22.42 billion in 2012. A large CAD can force India to raise interest rates to attract foreign investment. The RBI has taken steps like raising FII limits and removing lock-in periods on government bonds to attract foreign inflows and contain the CAD
Capital Inflows and Economic Growth A Comperative Studyiosrjce
This study examines the impact of capital inflows on economic growth of developing* economies; the
case of Nigeria Ghana and India from 1986-2012. This is necessitated by the doubts being raised as whether the
huge inflows of foreign capita! in developing economies over the years have transmitted to real economic
growth. Augmented Dickey Fuller unit root test was employed to evaluate the stationarity of the data, while
Johansen Co-integration was used to estimate the long-run equilibrium relationship among the variables. The
casual relationship was tested using Granger Causality, and Ordinary Least Square method was used to
estimate the model. The finding reveals that capital inflows have significant impact on the economic growth of
the three countries. In Nigeria and Ghana, foreign direct and portfolio investment and foreign borrowings have
significant and positive impact on economic growth. Workers' remittances significantly and positively related to
the economic growth of the three countries. The enabling environment should be created in the Developing
Countries to encourage more inflow of foreign investments and workers remittances while India specifically
should channel their foreign aids to productive ends. This will help in dosing the savings-investment gap and
encourage economic growth in these countries. The study signifies that capital inflows is indispensable in
dosing the savings-investment gap required for economic growth of developing countries.
United Nations Conference on Trade and Development (UNCTAD)Suraj Sudheer
UNCTAD is a permanent intergovernmental body of the UN that deals with trade, investment, and development. It has headquarters in Geneva and offices in New York and Addis Ababa. UNCTAD functions as a forum for government deliberations, undertakes research and policy analysis, and provides technical assistance to developing countries. Its main activities include work on trade and commodities, investment, macroeconomic policies, transport, and special programs to support least developed countries. It is organized with a Conference, Trade and Development Board, Commissions on key issues, expert meetings, and a Secretariat led by a Secretary-General.
- UNCTAD was established in 1964 as the principal organ of the United Nations General Assembly to deal with trade, investment, and development issues. It has 194 member states and is headquartered in Geneva, Switzerland.
- In the early 1960s, concerns about the place of developing countries in international trade led to calls for a UN conference, and the first UNCTAD conference was held in 1964 to address these issues.
- UNCTAD's primary objectives are to formulate policies relating to all aspects of development including trade, aid, transport, finance and technology. It ordinarily meets every four years.
The United Nations Conference on Trade and Development (UNCTAD) - Internation...manumelwin
The United Nations Conference on Trade and Development (UNCTAD) was established in 1964 as a permanent intergovernmental body. UNCTAD is the principal organ of the United Nations General Assembly dealing with trade, investment, and development issues.
UNCTAD was established in 1964 as a permanent intergovernmental body within the UN with 194 member countries. Its goals are to maximize trade, investment, and development opportunities for developing countries. It is headquartered in Geneva and oversees committees on commodities, manufactures, shipping, and other areas related to promoting international trade and formulating trade policies. UNCTAD's main functions include promoting global trade, establishing trade principles and policies, and reviewing and coordinating activities of other institutions to serve as a center for harmonious trade relations.
UNCTAD is the United Nations Conference on Trade and Development, established in 1964 to promote trade, investment, and development opportunities for developing countries. Its goals are to optimize trade and development opportunities for developing countries and assist them in integrating into the global economy. UNCTAD has 193 member states and focuses on intergovernmental processes, cooperation, and dialogue to build consensus on trade and development issues through various meetings and analytical reports.
La UNCTAD es el principal órgano de la ONU para asuntos relacionados con el comercio y el desarrollo. Fue creada en 1964 para promover el comercio de países en desarrollo y eliminar barreras a países industrializados. Actualmente tiene 193 miembros y su sede está en Ginebra, centrándose en analizar la globalización y su efecto en estrategias de desarrollo de países.
The ability to gain and to benefit from market access depends increasingly on compliance with trade regulatory measures such as sanitary requirements and goods standards. These non-tariff measures (NTMs) represent a challenge for exporters, importers and policy makers. Many NTMs have primarily non-trade objectives such as the protection of public health or the environment, while affecting trade de facto through procedural requirements. NTMs can be unintentionally discriminatory against smaller exporters and poorer countries. Appropriate trade regulatory measures in developing countries that are efficient, provide protection for consumers and support development is challenging but important.
Understanding the uses and implications of these trade policy instruments is essential for the formulation and implementation of effective development strategies.
A short presentation to explain the use of permutations and combinations and some examples to illustrate the concepts. This was made as an assignment in which i was to explain the concepts to the class.
Table of Contents
General Agreement on Tariffs and Trade 3
First Phase : 5
Second Phase : 5
Third Phase : 5
OBJECTIVES OF GATT : 5
OBJECTIVES OF GATT : 5
FUNDAMENTAL PRINCIPLES OF GATT : 5
OTHER FUNCTIONS OF GATT : 5
OTHER FUNCTIONS OF GATT : 5
Did GATT succeed? : 6
Slide 20: 6
Slide 21: 6
Slide 22: 6
Slide 23: 6
Slide 24: 6
Difference between GATT & WTO 7
The World Trade Organization (WTO) was formed on January 1, 1995 to oversee and liberalize international trade. It replaced the General Agreement on Tariffs and Trade (GATT). The WTO aims to promote world trade and ensure developing countries benefit from trade expansion. India has been a member of GATT since 1948 and joined the WTO at its inception. While the WTO has increased trade opportunities, India and other developing nations have faced challenges in areas like agriculture, patents, and movement of people. India has made progress in reducing trade barriers but developing countries continue advocating for more flexibility in some WTO rules and commitments.
General Agreement on Tariffs and Trade (GATT)Jean Tralala
The General Agreement on Tariffs and Trade (GATT) was a multilateral agreement signed in 1947 that aimed to reduce international trade barriers like tariffs and establish common rules for trade between member nations. It served as an interim arrangement until the World Trade Organization (WTO) was established in 1995. While initially intended to be temporary, GATT endured and facilitated several rounds of negotiations that progressively reduced trade barriers over nearly 50 years through pragmatic leadership and incremental negotiations.
The document discusses the establishment and evolution of international trade organizations and agreements from 1944 onwards. It provides details about the establishment of IMF, World Bank, ITO and GATT in the 1940s and discusses the objectives and principles of GATT. It then summarizes the key outcomes and achievements of GATT as well as exceptions. Finally, it outlines the establishment of WTO in 1995 and highlights some important features of the Uruguay Round agreements related to trade in goods, services, intellectual property rights, agriculture etc.
The document provides an overview of the World Trade Organization (WTO) and its relevance to India. It discusses that the WTO was formed in 1995 to replace the General Agreement on Tariffs and Trade (GATT). The objectives of the WTO include promoting multilateral trade and reducing barriers to free trade. India is a founding member of the WTO and the organization's rules have impacted India's agriculture, services, and intellectual property sectors. The document also outlines some of the key WTO agreements such as GATT, GATS, TRIPS, and provisions related to market access, domestic support, and export subsidies in agriculture.
The document discusses the World Trade Organization (WTO). It provides information on the formation of the WTO including that it was established in 1995 and replaced the GATT. The objectives of the WTO are to liberalize trade, promote world trade, ensure benefits for developing countries, increase competitiveness and employment, and establish rules for an open trading system. It has 153 member countries and agreements cover goods, services, intellectual property, and dispute settlement.
The document discusses a study conducted on the United Nations Conference on Trade and Development (UNCTAD). It provides objectives of the study which include understanding UNCTAD's objectives, areas of work, meetings, relationship with other agencies, and advantages. It then provides an introduction on increasing globalization and challenges faced by developing countries. It outlines UNCTAD's history, organization structure, main areas of work, objectives, meetings, and the New International Economic Order concept.
The document presents an overview of the World Trade Organization (WTO). It discusses the objectives, history, structure, principles, agreements, and role of the WTO. The WTO aims to help trade become more smooth, fair, free and predictable through administering trade agreements and resolving disputes between member nations. It also provides special provisions and assistance to developing countries. The WTO's role is to promote open, fair and undistorted global competition through trade liberalization and economic reforms.
The document provides information about the World Trade Organization (WTO). It notes that the WTO was established on January 1, 1995 and succeeded the General Agreement on Tariffs and Trade (GATT). The WTO aims to supervise and liberalize international trade between its 153 member countries. It has an annual budget of 196 million Swiss francs and 629 staff members. The WTO seeks to promote free trade and resolve trade disputes between countries.
Specialized cells in plants and animals have unique structures and functions. The document discusses several types of specialized cells including red blood cells, white blood cells, nerve cells, muscle cells, sperm cells, egg cells, root hair cells, palisade cells, and xylem cells. Red blood cells carry oxygen throughout the body while white blood cells protect the body by killing bacteria. Nerve cells carry electrical signals and coordinate functions. Muscle cells allow movement by contracting. Sperm and egg cells are reproductive cells that combine during fertilization. Root hair cells absorb water and minerals in plant roots. Palisade cells contain chloroplasts to perform photosynthesis. Xylem cells transport water and provide structure in plant stems.
MDGs & external finance, Peter Gammeltoft, Dakar 2009pgammeltoft
The financial crisis has significantly impacted developing countries through reduced trade, tightening of credit, reversal of capital flows, and decreased investment. Private financial flows to developing countries fell 40% in 2008, including a 14% drop in foreign direct investment. An estimated 55-90 million more people will fall into extreme poverty as a result. While some large emerging economies have been less affected, other developing countries face high risks due to large external debts, current account deficits, and shallow foreign reserves. Maintaining international cooperation and aid will be important to support developing countries and achieve the Millennium Development Goals during this time.
Global FDI flows collapsed with the global financial crisis in 2008 and remain 40% below pre-crisis levels. A major reason for this is the EU. While FDI flows in the rest of the world recovered by 2010, the EU continues to struggle due to structural factors that are undermining the quality of the EU’s investment environment. This paper analyses why and puts forward policy options.
Find out more at www.oecd.org/investment
Foreign direct investment (FDI) refers to long-term cross-border investment. FDI provides capital, skills, technology and jobs to developing nations. The COVID-19 pandemic has significantly impacted FDI globally and in Bangladesh. During FY2019, FDI in Bangladesh reached a record high of $3.9 billion but declined in 2020 due to the pandemic. Key sectors like garments and remittances saw major losses. The Bangladesh government should identify priority countries and sectors to attract FDI post-pandemic, such as healthcare, pharmaceuticals, and countries less impacted by COVID-19.
Georgia's economy faced negative shocks in 2008 from the Russia-Georgia war and the global economic crisis, hurting foreign investment. From 2008-2011, Georgia received $4.5 billion in international aid. Despite challenges, certain sectors saw significant growth, such as financial intermediation and electricity. However, GDP growth was driven more by consumption than investment and exports. The trade deficit widened as imports grew faster than exports in the first quarter of 2011. Foreign direct investment also increased compared to 2009-2010, focusing on industries like mining and manufacturing.
Foreign Direct Investment. Political Economic Digest Series - XVIAkash Shrestha
In this issue, we will be discussing about Foreign Direct Investment (FDI).
Foreign Direct Investment has been a very productive tool for the economic growth of many countries. Recently after the government made the decision to celebrate 2012/13 as investment year and after the agreement with India i.e. Bilateral Investment Promotion and Protection Agreement, the topic of Foreign Direct Investment has been highly discussed among the lawmakers, policymakers and general public. The examples provided in this issue of different countries regarding FDI has shown how the growth rate is positively affected by the investment from outside the country.
1) Indonesia has experienced strong economic growth in recent decades but faces short-term challenges including a slowing economy, widening budget deficit, and currency depreciation due to capital outflows.
2) Weakening commodity prices and slowing investment have reduced GDP growth to an estimated 5.5% in 2013 and 5.0% in the medium term, down from over 5.9% in 2008-2012.
3) A widening current account deficit, capital outflows, and currency depreciation have increased inflation and interest rates, constraining fiscal and monetary policy options.
In the sixth of a series of reports, commissioned by HSBC, we look at China’s overseas direct investment (ODI) into developed markets and how cooperation between Chinese companies and their developed-market partners is evolving.
This paper uncovers key insights on potential collaboration between Chinese companies and businesses from the developed world. I
Cambodia's outlook brief for 2013 possibilities and policy priorities for s...Solina Yean
The document summarizes Cambodia's economic outlook for 2013. It finds that while Cambodia has experienced strong economic growth in recent years, reaching an estimated 7.7% GDP growth in 2012, this growth has not been inclusive and has lagged in improving social indicators like education and healthcare. To sustain growth and avoid the "middle income trap", the document recommends that Cambodia focus on increasing skills training to diversify the economy, strengthening the financial sector to support SMEs, and leveraging opportunities from regional economic integration under ASEAN.
Greenfield foreign direct investment (FDI) showed signs of recovery in 2013, increasing 10.94% to $618.62 billion globally. Asia-Pacific remained the top destination with $184.67 billion in FDI, though China and India saw declines while Vietnam, Myanmar, and Japan saw strong growth. Western Europe was the largest source of outbound FDI at $176.4 billion, a 13% increase, while FDI from Asia-Pacific fell slightly. The recovery in FDI was driven by market-seeking investments in sectors like oil and gas, communications, and construction.
Read and follow the top economic indicators for Vietnam, M&A activity, and major developments in finance, banking, and legal. Published Monthly with contribution from LNT & Partners Law Firm.
• The true picture of China’s outbound investment is quite different from many people’s impression.
• Investments in Africa are also in their early stages.
• Investments in Belt & Road countries remained small and slowed in the past year.
• Mining is no longer a primary target of China’s acquisition.
• The reduced foreign exchange reserve is not hard constraint to the outbound investment.
Inward FDI in Indonesia and its policy context, 2013 Arita Soenarjono
Indonesia has been an important recipient of foreign direct investment which played a key role in its economic development, especially after introducing investment laws in the 1960s-1990s. Inward FDI flows declined during the Asian Financial Crisis of 1997-1998 but have since recovered, growing through the global financial crisis of 2008-2009. The top investing industries are now manufacturing and services, with Asia being the major source region, especially countries like Japan, Singapore, and Malaysia. Indonesia was less impacted by the global financial crisis compared to other Southeast Asian countries due to its domestic market and less integrated position in global value chains.
This document provides an overview of Brazil, including its general facts, foreign direct investment, and hot topics. Brazil gained independence in 1822 and is located in South America. It has a population of over 193 million people and its capital is Brasilia. Brazil receives large amounts of foreign direct investment as the 5th largest recipient globally and 8th largest economy. However, it also faces challenges like wealth disparity and a complex regulatory environment. Hosting the 2014 World Cup and 2016 Olympics will drive infrastructure improvements and boost Brazil's economy and tourism.
The document discusses foreign direct investment (FDI) trends in India over several decades. It notes that sectors like telecommunications, construction, and computer software and hardware have been major recipients of FDI. India ranks highly in global FDI confidence indexes and saw FDI inflows increase significantly from the early 1990s after economic liberalization, reaching over $40 billion annually by 2008 despite the global economic crisis. Major international companies are finding ways to invest in India despite some restrictions.
The document provides an economic review and outlook covering various regions and countries. It discusses slowing global economic growth but reduced risks. Foreign direct investment declined globally in 2012 but some countries like Africa saw growth. The US Fed announced a possible tapering of quantitative easing which initially caused market selloffs but markets recovered. Eurozone risks were lowered by ECB actions though risks remain. Germany's economy slowed due to weakening Chinese demand. China's growth declined for two successive quarters due to weak overseas demand.
The document discusses the business environment in China by examining the economic, political, and cultural factors that influence business practices. It summarizes that China has a huge potential market but also poses risks due to differences in its political system and culture. The economy has grown significantly through foreign investment and trade, though challenges remain around infrastructure, currency policy, and human rights issues. Understanding these environmental factors is important for foreign businesses operating in China.
BALANCE OF PAYMENTS, COMPONENTS & ECONOMIC SURVEYsairajch94
A VERY DETAILED AND ELABORATED PPT ON THE BOP OF INDIA WHERE THE COMPONENTS ARE MENTIONED, THEN A BRIEF OF THE CRISIS OF 1991 IS MENTIONED AND THEN THE DEVELOPMENTS FROM THE ECONOMIC SURVEY OF 2013-14 ARE ALSO FOCUSED UPON.
The document provides an overview of Mongolia's macroeconomic indicators and developments in July 2013. It summarizes that GDP growth slowed to 7.2% in the first quarter due to declining exports and FDI inflows. Inflation decelerated to 8.4% in May after accelerating to double digits in 2012 due to expansionary fiscal policy. The current account deficit remained significant despite slowing imports as fiscal policy continued to be procyclical.
This document provides an overview of globalization and its impact on India. It defines globalization and discusses how India opened its economy in the early 1990s, lowering trade barriers and tariffs. This increased integration led to higher GDP growth rates, with India becoming the 4th largest economy. However, India still lags other countries in terms of factors like foreign direct investment and trade. The document also examines the relationship between globalization and poverty, consequences for national economies, and concludes that sustainable agricultural growth is still important for development.
This document discusses the impact of foreign direct investment (FDI) on balance of payments. It summarizes trends in FDI inflows and outflows for various countries from 2015-2016. It finds that while some large FDI recipient countries like China, Ireland and Netherlands had current account surpluses in 2017, other large recipients like the US, UK, India, Canada and France had deficits. For India specifically, FDI inflows increased substantially from 2000-2001 to 2016-2017, though India's current account balance was mixed, with deficits in trade but surpluses in net invisibles. The document concludes that countries receiving large FDI inflows should focus on export-oriented and import-substituting industries to
Bndespar cvm dados econômico-financeiros_31-12-2012Lilian Alvares
O relatório apresenta os resultados financeiros da BNDES Participações S.A. (BNDESPAR) para o ano de 2012. A BNDESPAR teve lucro líquido de R$298 milhões em 2012, uma queda de 93,1% em relação a 2011, principalmente devido a uma redução de R$6,3 bilhões no resultado de suas participações societárias. O relatório também discute o cenário macroeconômico brasileiro e internacional em 2012 e fornece detalhes sobre os ativos, passivos e rentabilidade da BNDESPAR.
O relatório resume as expectativas de mercado para os principais indicadores econômicos brasileiros nos próximos 12 meses e em 2013-2014. A inflação mediana prevista é de cerca de 5,5% para os próximos 12 meses e em 2013. As taxas de câmbio e juros também são previstas para se manterem estáveis.
O relatório resume as expectativas de mercado para os principais indicadores econômicos brasileiros nos próximos 12 meses e anos de 2013-2014. Apresenta as medianas e comportamentos das projeções para a inflação, câmbio, taxa de juros e outros indicadores.
O relatório resume as expectativas de mercado para os principais indicadores econômicos brasileiros nos próximos meses e anos. A inflação mediana esperada é de cerca de 5,5% para 2013 e em torno de 5% para 2014. A taxa de câmbio e a taxa Selic também são previstas para se manterem estáveis.
The document summarizes the IMF's projections for global economic growth in 2013 and 2014 from its January 2013 World Economic Outlook update. It finds that:
1) Global growth is projected to gradually increase in 2013 as factors slowing growth in recent years ease, but the recovery will be more gradual than previously expected.
2) While policy actions have reduced crisis risks in Europe and the US, growth remains weak in Europe and may be weaker than projected, with downside risks remaining significant.
3) Growth is forecast to increase modestly in the US and pick up in emerging markets, but contract further in Japan and remain weak in Europe overall.
1. No. 11 23 January 2013
GLOBAL FDI RECOVERY DERAILS
HIGHLIGHTS
Global foreign direct investment (FDI) inflows declined by 18% in 2012, to an estimated US$1.3 trillion
(figure 1) – a level close to the trough reached in 2009 – due mainly to macroeconomic fragility and
policy uncertainty for investors.
The FDI recovery that had started in 2010 and 2011 will take longer than expected. FDI flows could
rise moderately over 2013-2014, although significant risks to this scenario persist.
The strong decline of FDI flows presents a stark contrast to other macroeconomic variables, including
GDP, trade and employment growth which remain in positive territory (table 1).
Figure 1. Global FDI inflows, average 2005–2007, 2007–2014
(Trillions of US dollars)
Source: UNCTAD.
* Revised, ** Estimates, *** Forecast.
In developed countries FDI flows fell drastically to values last seen almost ten years ago. The majority of
EU countries saw significant drops in FDI flows with the total fall amounting to some US$150 billion.
Unites States FDI flows also fell by US$80 billion.
FDI flows to developing economies, for the first time ever, exceeded those to developed countries, by some
US$130 billion. FDI flows to developing economies remained resilient, declining only 3%. Flows to
developing Asia lost some momentum, although they remained at historically high levels. Latin America
and Africa saw a small increase.
Cross-border merger and acquisitions (M&As) data shows that developed country investors are divesting
massively while investors from developing countries are bucking the trend. Their share in cross-border
M&A purchases rose to a record 37%.
1
2. Global FDI inflows declined by one fifth in 2012
Global FDI flows fell by 18% to an estimated US$1.3 trillion, down from a revised US$1.6 trillion
in 2011, as significant investor uncertainty continues to hamper the FDI recovery. This uncertainty is driven
by a weakening macroeconomic environment with lower growth rates for GDP, trade, capital formation and
employment (table 1), and by a number of perceived risk factors in the policy environment, related to the
Eurozone crisis, the United States fiscal cliff, changes of government in a number of major economies in
2012, and broad-based policy changes with implications for FDI.
Table 1. Growth rates of global GDP, GFCF, trade, employment and FDI, 2008–2014
(Per cent)
Variable 2008 2009 2010 2011 2012a 2013b 2014b
GDP 1.4 -2.1 4.0 2.7 2.3 2.4 3.1
Trade 3.0 -10.4 12.6 5.8 3.2 4.5 5.8
GFCF 2.3 -5.6 5.3 4.8 4.6 5.3 6.0
Employment 1.1 0.4 1.4 1.5 1.3 1.3 1.3
FDI -9.5 -33.0 14.1 16.2 -18.3 7.7 17.1
Memorandum:
FDI value ( in trillions) 1.81 1.21 1.38 1.60 1.31 1.4 1.6
Source : UNCTAD based on World Bank for GDP, IMF for GFCF and Trade and ILO for employment.
a
Estimation. b Projections.
GFCF=gross fixed capital formation.
Developing countries surpassed developed countries in FDI inflows
FDI flows to developing economies remained relatively resilient in 2012, reaching US$680
billion, the second highest level ever recorded. Developing economies absorbed an unprecedented
US$130 billion more than developed countries (figure 2).
Figure 2. Global FDI inflows, developed, developing and transition economies, 2000–2012
(Billions of US dollars)
Source: UNCTAD.
2
3. FDI inflows to developing Asia fell by 9.5% as a result of declines across most sub-regions and
major economies, including China, Hong Kong (China), India, the Republic of Korea, Singapore and
Turkey. However, 2012 inflows to Asia were still at the second highest level recorded, accounting for 59%
of FDI flows to developing countries.
FDI flows to China declined slightly but the country continues to be a major FDI recipient – the
second largest in the world. FDI inflows to China declined by only 3.4% to $120 billion in 2012, despite a
strong downward pressure on FDI in manufacturing caused by rising production costs and weakening
export markets. The 7.8% growth of the Chinese economy helped maintain investor confidence. FDI to
India declined by 14%, although it remained at the high levels achieved in recent years. The country’s
prospects in attracting FDI are improving thanks to ongoing efforts to open up key economic sectors.
Despite an overall 7% decline in FDI inflows to the Association of Southeast Asian Nations
(ASEAN), some countries in this group of economies appear to be a bright spot: preliminary data show that
inflows to Cambodia, Myanmar, the Philippines, Thailand and Viet Nam grew in 2012.
FDI flows to West Asia did not turn around their negative trend in 2012, declining for the fourth
consecutive year. With continuing political uncertainty at the regional level, and subdued economic
prospects at the global level, foreign investors are still holding back. FDI to Saudi Arabia – the region’s
main recipient – did register an increase. Turkey, the region’s second main recipient, experienced a decline
in FDI flows due to a fall in cross-border M&As sales in 2012.
Figure 3. FDI inflows to developing and transition economies, 2008–2012
(Billions of US dollars)
Source: UNCTAD.
*Asia includes East Asia, South-East Asia, South Asia and West Asia
Latin America and the Caribbean registered positive growth in FDI in 2012. The rise was strongest
in South America due to the sub-region's economic buoyancy, leading to a significant number of market-
seeking investments, and persistent strength of commodity prices, which continue to encourage investments
in the extractive industries, particularly in Chile, Peru and Colombia. Inflows registered also strong growth in
Argentina. FDI to Brazil slowed but remained robust, confirming the country’s primacy as the leading
investment destination in the region, accounting for 28% of the total. FDI flows to Central America
decreased mainly as the result of a decline in Mexico.
3
4. FDI flows to Africa rose in 2012. Flows to North Africa reversed their downward trend, as Egypt
saw a rebound of investment from European investors. Angola – an important holder of FDI stock in Africa
– posted lower divestments in 2012 compared with 2010 and 2011 while positive growth of FDI flows to
South Africa contributed to a rise in inward FDI flows to Southern Africa.
Transition economies experienced a decline in FDI flows of 13%, reaching US$81 billion. FDI
flows to South-East Europe fell 52%, as a result of sluggishness of investment from EU countries, the main
investors in the region. Flows to the Commonwealth of Independent States (CIS) declined, as the rise of
FDI to Kazakhstan and Ukraine were not enough to compensate the 17% fall of FDI flows in the Russian
Federation.
FDI flows to developed countries plummeted
FDI flows fell drastically in developed countries to values last seen almost ten years ago. Of the
global decline of US$300 billion in FDI inflows, from UD$1.6 trillion in 2011 to an estimated US$1.3
trillion in 2012, almost 90% was accounted for by developed countries. FDI declined sharply both in
Europe and in the United States. In Europe, Belgium and Germany saw large declines in FDI inflows. In
Belgium – which, with a drop of US$80 billion, accounted for much of the fall – FDI flows are often
volatile or inflated by the transactions of the special purpose entities (SPE). Germany posted a large decline
from US$40 billion in 2011 to only US$1 billion in 2012, due in part to large divestments. The decline of
inflows to the United States is largely explained by the fall in cross-border M&A sales; despite the fall the
country remained the largest recipient of FDI flows in the world. Elsewhere, Japan saw a net divestment for
the third successive year.
There were a few developed countries that bucked the trend and saw FDI inflows increase, namely
France, Canada, Ireland, and the United Kingdom, although none of these increases were significant in
historic terms. With the return of stability and confidence in the Irish economy, which was severely
impacted by the banking crisis in 2008, there has been a revival of transitional corporation (TNC) activity in
the country.
FDI flows to the Southern European countries hit by the crisis (Greece, Italy, Portugal, and Spain)
together more than halved from 2011. In Italy, where weak economic growth in 2011 turned into a
recession (an estimated contraction by 2.3%), the country saw sizable divestments and loan repayments. In
Spain inflows declined from US$29.5 billion in 2011 to US$17.5 billion in 2012. Inward FDI to Portugal
fell but remained at a relatively high level, helped by Chinese acquisitions of state assets in the energy
sector. Inward FDI to Greece remained marginal but saw a rise, mostly explained by injections of capital by
parent TNCs to cover losses of their affiliates.
Cross-border M&As decreased sharply, but developing country investors are
bucking the trend
In 2012, the value of cross-border M&As fell by 41% to the lowest activity level since 2009. The
weak M&A market reflected global macro-economic uncertainty and the resulting low corporate
confidence, especially in developed markets. In many European countries, cross-border M&A sales
decreased significantly from 2011 levels.
Many developed countries such as the Australia, France, Luxembourg, Portugal and the United
Kingdom saw large divestments by their TNCs from assets abroad in 2012. Examples include the
divestments of ING Group in the United States and Canada for US$12 billion, and the sale by BP of a stake
in a group of oil fields in the Gulf of Mexico for US$5.6 billion. In contrast, purchases by TNCs from
developing economies reached US$115 billion, accounting for a record-high share of 37% of total world
4
5. M&A purchases. Large deals include the acquisition by Petronas (Malaysia) of Progress Energy Resources
Corp (Canada) for US$5.4 billion, the purchase by Sinopec Group (China) of Petrogal Brasil Ltda (Brasil)
for US$4.8 billion and the purchase of Energias de Portugal SA (Portugal) by China Three Gorges Corp
(China) for US$3.5 billion. While M&A purchases by TNCs from Latin American saw the most rapid
increase (to US$28 billion), Asian investors continue to account for the lion's share (75%) of acquisitions
from developing countries (annex 2).
The value of announced greenfield projects declined for the fourth straight year, falling by 34% to
their lowest level ever. However, the value of greenfield investments still account for two thirds of global
investments.
Figure 4. The value of cross-border M&A sales and of greenfield investment projects,
a
2005 – 2012
(Billions of US dollars)
Source: UNCTAD, based on cross-border M&A database for M&As, and information from
the Financial Times Ltd, fDi Markets (www.fDimarkets.com) for greenfield projects.
a
Data for 2012 are preliminary.
FDI prospects for 2013 and 2014: delayed recovery?
FDI flows could rise moderately to US$1.4 trillion in 2013 and US$1.6 trillion in 2014 (table 1)
as the global economy is expected to make a hesitant and uneven recovery over the coming two years.
GDP growth, gross fixed capital formation and trade are projected to rise gradually, both at the global
level and, especially, in developing countries. Such a slight improvement in macroeconomic conditions
could prompt TNCs to transform their record levels of cash holdings into new investments. If investor
confidence returns, TNCs may also be induced to make strategic investments to cement their business
plans for the post-crisis period. In addition, possible further sales of publicly owned assets to restructure
sovereign debt may also provide FDI opportunities.
Significant risks to this scenario persist, including structural weaknesses in major developed
economies and in the global financial system, the possible further deterioration of the macroeconomic
environment, and significant policy uncertainty in areas crucial for investor confidence, including fiscal
policy and investment regulations and restrictions. Should these risks prevail, FDI recovery could be
further delayed.
"FDI recovery is on a bumpy road. While FDI in developing countries remained resilient, more
investment in sectors that can contribute to job creation and enhance local productive capacity is still
badly needed. Therefore promoting FDI for sustainable development remains a challenge" said
Secretary-General of UNCTAD, Dr. Supachai Panitchpakdi.
5
6. Annex 1: FDI inflows, 2010-2012
(Billions of dollars and per cent)
Growth rate
Region / economy 2010 2011a 2012 b 2011-2012
(%)
World 1 381.0 1 604.2 1 310.7 -18.3
Developed economies 674.9 807.8 548.9 -32.1
Europe 407.6 459.3 293.5 -36.1
European Union 358.0 440.0 287.0 -34.8
Austria 0.8 14.7 5.0 -65.9
Belgium 85.7 103.3 19.3 -81.3
Czech Republic 6.1 5.4 10.0 84.3
Denmark - 7.4 14.8 2.1 -86.1
France 30.6 40.9 58.9 43.8
Germany 46.9 40.4 1.3 -96.8
Greece 0.3 1.1 2.6 128.7
Ireland 42.8 11.5 39.6 245.1
Italy 9.2 34.3 5.3 -84.7
Luxembourg 27.7 14.4 22.6 57.0
Netherlands - 9.9 13.6 - 2.1 ..
Poland 13.9 18.9 4.1 -78.2
Portugal 2.6 10.4 9.2 -11.8
Spain 40.8 29.5 17.5 -40.6
Sweden - 1.3 14.7 10.1 -31.1
United Kingdom 50.6 51.1 62.5 22.2
Switzerland 32.5 11.8 6.1 -48.2
Canada 29.1 41.4 47.2 14.0
United States 197.9 226.9 146.7 -35.3
Australia 35.2 65.8 48.5 -26.3
Japan - 1.3 - 1.8 - 0.4 ..
Developing economies 630.9 702.7 680.4 -3.2
Africa 43.2 43.4 45.8 5.5
Egypt 6.4 - 0.5 3.5 ..
Nigeria 6.1 8.9 5.3 -40.8
Angola - 3.2 - 5.6 - 3.1 ..
South Africa 1.2 5.8 6.4 10.3
Latin America and the Caribbean 187.9 217.0 232.6 7.2
Argentina 7.1 8.7 11.0 27.3
Brazil 48.5 66.7 65.3 -2.0
Chile 15.4 17.3 26.4 52.7
Colombia 6.7 13.6 15.8 15.9
Peru 8.5 8.2 11.0 34.2
Mexico 21.0 20.8 17.4 -16.5
Asia 397.8 440.7 399.0 -9.5
West Asia 59.3 48.6 47.0 -3.3
Saudi Arabia 29.2 16.3 18.8 15.1
Turkey 9.0 15.9 12.4 -22.1
East Asia 214.6 237.5 213.1 -10.3
China 114.7 124.0 119.7 -3.4
Hong Kong, China 82.7 96.1 72.5 -24.6
Korea, Republic of 10.1 10.2 9.0 -11.9
South Asia 31.7 39.6 32.3 -18.4
India 24.2 31.6 27.3 -13.5
South-East Asia 92.1 115.0 106.5 -7.3
Cambodia 0.8 0.9 1.8 104.3
Indonesia 13.8 19.2 19.2 -0.1
Malaysia 9.1 12.0 10.0 -16.8
Myanmar 1.0 1.0 1.9 90.0
Philippines 1.3 1.3 1.5 15.5
Singapore 48.6 64.0 54.4 -15.1
Thailand 9.1 7.8 8.1 3.9
Viet Nam 8.0 7.4 8.4 12.5
Transition economies 75.2 93.7 81.4 -13.1
South-East Europe 4.6 7.2 3.5 -51.9
Commonwealth of Independent States (CIS) 70.6 86.5 78.0 -9.9
Kazakhstan 11.6 13.7 15.6 13.4
Russian Federation 43.3 52.9 44.1 -16.6
Ukraine 6.5 7.2 8.0 11.5
Source : UNCTAD.
a
Revised.
b
Preliminary estimates.
Note: World FDI inflows are projected on the basis of 199 economies for which data are available for part of
2012 or full year estimate, as of 16 January 2013. Data are estimated by annualizing their available data, in
most cases the first three quarters of 2012. The proportion of inflows to these economies in total inflows to their
respective region or subregion in 2011 is used to extrapolate the 2012 regional data.
6
8. The next issue of UNCTAD’s Global Investment Trends
Monitor will be released in mid-April 2013.
The next issue of UNCTAD’s Investment Policy Monitor
will be released in February 2013.
8