TRENDS AND IMPACTS OF FOREIGN INVESTMENT IN DEVELOPING COUNTRY AGRICULTURE

FIGURE 2
Trends in FDI-African case study countries,
1980-2010
Million US $
10 000
8 000
6 000
4 000
2 000
0
1980
1985
Zambia
1990
Tanzania
1995
Source: Adapted from UNCTAD, 2009
2000
2005
Ghana
2010
Uganda
Senegal
Mali
patterns as the aggregate. The African countries
in our case study all show increasing and
upward trend in FDI flows during the mid-1990s.
Zambia, Ghana, United Republic of Tanzania
and Uganda all exhibits steep upward trends
while for Senegal and Mali, the trend growth is
rather stable. In terms of value, Ghana surpassed
Zambia in 2010 as an important destination of
FDI inflows primarily due to the recent discovery
of petroleum. Figures 3 and 4 also depict trends
in FDI for case study countries in Asia and Brazil,
which also indicates that growth in FDI started
during the 1990s.
From our data, it is clearly evident that FDI has
made significant contribution to growth in many
developing countries over the 1980-2010 periods.
Using our case study countries as example
(Table 1 and Figure 5), the longterm contribution
of FDI to GDP is as high as 83.8 percent in
Zambia. Senegal (6.4 percent) and Uganda (8.9
percent) are the only two out of eight countries in
which FDI’s contribution to growth has been less
than 10 percent.
Over the period 2000-2010, FDI has
contributed in excess of 20 percent to GDP in the
following countries: Brazil (22 percent), Cambodia
(43 percent), Ghana (30 percent), United Republic
of Tanzania (32 percent), Thailand (34 percent) and
Part 2: Overview of trends in Foreign Direct
Investment (FDI)
FIGURE 3
Trends in FDI for Asian case study countries,
1980-2010
Million US $
150 000
120 000
90 000
60 000
30 000
0
1980
1985
1990
1995
Source: Adapted from UNCTAD, 2009
2000
Thailand
Cambodia
2005
FIGURE 4
Trends in FDI flows to Brazil, 1980-2010
Million US $
500 000
400 000
300 000
200 000
100 000
0
1980
1985
1990
1995
Source: Adapted from UNCTAD, 2009
2000
Brazil
2005
2010
2010
Uganda (22 percent). In the case of Zambia, FDI
has made very significant contribution to GDP even
at relative low levels compared to other part of the
world. FDI flows to Zambia, Africa’s top copper
producer, hit a record US$2.4 billion in the first half
of 2010 from US$959 million the previous year
due to a mining and manufacturing boom with
expected creation of 33 140 jobs. Between January
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