impact of government policies and investment agreements on fdi ...

has seen a substantial increase in its average share <strong>of</strong> total FDI inflow into this region in
the 1990s. The average share <strong>of</strong> FDI inflow has also increased in the 1990s for countries
like Bangladesh, India <strong>and</strong> Vietnam, though their overall share in the 1990s still remains
very low. But the average share <strong>of</strong> Malaysia <strong>and</strong> Hong Kong has declined from around 15
to 8 per cent <strong>and</strong> 22 to 17 per cent respectively in the decade <strong>of</strong> the 1990s. Some fall is
also seen in the average shares <strong>of</strong> Taiwan, Indonesia, Pakistan, Sri Lanka <strong>and</strong> Thail<strong>and</strong>
during this period.
However, the average shares <strong>of</strong> these countries in total stock <strong>of</strong> FDI in this region,
in the period 1980 to 2001, shows a very different picture. Hong Kong has received
around 50 per cent <strong>of</strong> the total stock <strong>of</strong> FDI in these two decades. While 15 per cent <strong>of</strong>
the total FDI stock has gone into China, followed by Indonesia at around 10 percent <strong>and</strong>
Singapore at around 8 per cent. Thail<strong>and</strong> <strong>and</strong> Taiwan have received around 2 per cent <strong>of</strong>
the total FDI stock <strong>and</strong> all others have received less than 1 per cent share in total FDI
stock into this region.
Table 3 reports the average share <strong>of</strong> FDI inflows from developed <strong>and</strong> developing
countries into the Asian developing countries in the period 1986-87 to 1996-97 2 . It is
interesting to note that Singapore has received the largest share <strong>of</strong> FDI from the
developed countries followed by Hong Kong, Korea <strong>and</strong> Indonesia. Countries like
Taiwan, India, Thail<strong>and</strong>, Philippines, Malaysia <strong>and</strong> Pakistan have received more than 50
per cent <strong>of</strong> their FDI from the developed countries. The rest have a larger share <strong>of</strong> FDI
from the developing countries. Interestingly, China <strong>and</strong> Vietnam have more than 60 per
cent <strong>of</strong> FDI inflows from developing countries.
2
These averages are based on FDI approvals <strong>and</strong> not actual inflows.
6