Market Analysis Tools and Services - UNCTAD Virtual Institute
Market Analysis Tools and Services - UNCTAD Virtual Institute
Market Analysis Tools and Services - UNCTAD Virtual Institute
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Measuring FDI<br />
• Stocks <strong>and</strong> flows are<br />
related over time:<br />
Flow<br />
• Stock t = Stock t-1 + Flow t<br />
• Flow t = Stock t – Stock t-1<br />
Stock<br />
Flow<br />
(reimbursement of intra-company loans, disinvestment)<br />
Potential impact of FDI<br />
• Benefits:<br />
• Increased employment<br />
• Upgraded infrastructure: utilities,<br />
logistics, business services<br />
• Fast transfer of technology <strong>and</strong><br />
managerial skills, that:<br />
• Increase labour productivity<br />
• Contribute to innovations<br />
• Increased market competition:<br />
push for further innovation <strong>and</strong><br />
efficiency<br />
• Greater consumer choice at lower<br />
prices<br />
• Risks:<br />
• Lack of sufficient technology<br />
transfer<br />
• Enclave investment with no links<br />
to domestic economy<br />
• Excess fiscal incentives<br />
jeopardize local investment<br />
• Race to the bottom <strong>and</strong> unethical<br />
behavior:<br />
• Child labour employment<br />
• Cross-border "shipment" of<br />
environmentally costly activities<br />
Investment Map Overview<br />
Project Title<br />
City, date
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