16 In an analysis of shareholder rights, cred<strong>it</strong>or rights, efficiency of judiciary, rule of law and absence of corruption, Mexico scores below the Lat<strong>in</strong> American average <strong>in</strong> four of five measures. Based on López-de-Silanes, “NAFTA and Mexico’s Reforms on Inves<strong>to</strong>r Protection” as c<strong>it</strong>ed <strong>in</strong> Lederman, Maloney and Servén, Lessons from NAFTA for Lat<strong>in</strong> America and the Caribbean (Wash<strong>in</strong>g<strong>to</strong>n DC: World Bank, 2003), p. 199. 17 A World Bank study concludes, for example, that FDI <strong>in</strong>creased temporarily <strong>in</strong> Mexico when <strong>it</strong> jo<strong>in</strong>ed NAFTA and <strong>in</strong> Spa<strong>in</strong> and Portugal when they jo<strong>in</strong>ed the EU. But the study found no clear evidence that that FDI was diverted from neighbor<strong>in</strong>g develop<strong>in</strong>g countries. Rather, the relative flows of FDI among RIA beneficiary countries <strong>in</strong> a region seemed <strong>to</strong> correlate more closely w<strong>it</strong>h productiv<strong>it</strong>y growth, market openness and size, monetary and price stabil<strong>it</strong>y, tax burden, and governance and <strong>in</strong>st<strong>it</strong>utional qual<strong>it</strong>y. See Lederman, Maloney and Servén, Lessons from NAFTA for Lat<strong>in</strong> America and the Caribbean, Chapter 8, “The Impact of NAFTA on Foreign Investment <strong>in</strong> Third <strong>Countries</strong>,”2003. 18 WIR 2006, p. 27. 19 ASEAN has attempted <strong>to</strong> liberalize <strong>in</strong>vestment flows among members. Signed <strong>in</strong> 1998, the Framework Agreement on the ASEAN Investment Area (AIA) seeks <strong>to</strong> raise FDI <strong>in</strong> ASEAN through the creation of a liberal and transparent <strong>in</strong>vestment environment, lead<strong>in</strong>g <strong>to</strong> fully open <strong>in</strong>vestment flows by 2020. Member states have agreed <strong>to</strong> undertake programs <strong>in</strong> <strong>in</strong>vestment liberalization, cooperation and facil<strong>it</strong>ation, and <strong>in</strong>vestment promotion. AIA focuses on manufactur<strong>in</strong>g, agriculture, forestry, fisheries and m<strong>in</strong><strong>in</strong>g and quarry<strong>in</strong>g, but w<strong>it</strong>h <strong>in</strong>creas<strong>in</strong>g <strong>in</strong>terest <strong>in</strong> expand<strong>in</strong>g coverage <strong>to</strong> a broad range of grow<strong>in</strong>g services (e.g., health care, <strong>to</strong>urism, telecomunications, distribution and logistics, transportation and others). 20 http://www.ecattrade.com/issues/ content.aspID=426 21 All resources can be accessed through MIGA’s webs<strong>it</strong>e at http://www.miga.org. 22 IFC has the added value of catalyz<strong>in</strong>g FDI by use of <strong>it</strong>s own resources. On average, other <strong>in</strong>ves<strong>to</strong>rs and lenders provide more than $5 for every $1 of IFC f<strong>in</strong>anc<strong>in</strong>g. IFC alos syndicates loans w<strong>it</strong>h <strong>in</strong>ternational commercial banks, underwr<strong>it</strong>es <strong>in</strong>vestment funds, and provides bus<strong>in</strong>ess advisory services. 23 See World Development Report 2005, p. 179. 102
APPENDIX A Data on FDI Flows and S<strong>to</strong>cks
- Page 1:
FOREIGN DIRECT INVESTMENT PUTTING I
- Page 4 and 5:
Sponsored by USAID’s Bureau of Ec
- Page 6 and 7:
5. Attracting FDI 55 What Foreign I
- Page 9:
PREFACE Trade and foreign direct in
- Page 12 and 13:
• Strengthening competition and e
- Page 14 and 15:
15 years is mixed at the industry l
- Page 16 and 17:
asis of careful country-by-country
- Page 18 and 19:
esources, including Internet addres
- Page 20 and 21:
Figure 1-1 Net Total Resource Flows
- Page 22 and 23:
Singapore’s Rise and FDI Througho
- Page 24 and 25:
FDI BY FINANCIAL COMPONENT A foreig
- Page 27 and 28:
2. THE CASE FOR FDI International b
- Page 29 and 30:
The Global Factory—Catalyst for E
- Page 31 and 32:
countries through mergers and acqui
- Page 33 and 34:
conditions and policies in host cou
- Page 35 and 36:
labor market structure and flexibil
- Page 37 and 38:
and distributors and to invest in e
- Page 39 and 40:
3. TRENDS AND PATTERNS IN FDI FLOW
- Page 41 and 42:
3. A wave of international corporat
- Page 43 and 44:
undo improvements in investment cli
- Page 45 and 46:
Table 3-2 Top Developing Country Re
- Page 47 and 48:
Three Global Variables in FDI Flows
- Page 49 and 50:
help maintain and perhaps even add
- Page 51 and 52:
shot up to almost $16 billion in 20
- Page 53:
tions and finance, including recent
- Page 56 and 57:
Table 4-1 Sector Distribution of Es
- Page 58 and 59:
Table 4-2 Estimated Developing Coun
- Page 60 and 61:
Figure 4-2 Selected Service Industr
- Page 62 and 63:
traditional clients more cost-effec
- Page 64 and 65:
Figure 4-5 Selected Manufacturing I
- Page 66 and 67:
countries or the Morocco-U.S. FTA w
- Page 68 and 69: PRIVATE INFRASTRUCTURE DEMAND Robus
- Page 70 and 71: eported to be a source of FDI throu
- Page 72 and 73: But, in addition to these commercia
- Page 74 and 75: Exhibit 5-1 Selected Investment Sco
- Page 76 and 77: Exhibit 5-2 Selected Investment Cli
- Page 78 and 79: Ultimately, governments must make f
- Page 80 and 81: expedite approvals. Otherwise the a
- Page 82 and 83: Where governments deem incentives n
- Page 84 and 85: services in this phase involve one-
- Page 87 and 88: 6. INTERNATIONAL AGREEMENTS AND INS
- Page 89 and 90: FREE TRADE AND REGIONAL INTEGRATION
- Page 91 and 92: 1998. 11 But many advocates, partic
- Page 93 and 94: Encouraging Local Supply Links: Car
- Page 95 and 96: International Finance Corporation.
- Page 97: specific decisions to invest but do
- Page 100 and 101: 4. Some FDI already flows to every
- Page 102 and 103: following priorities recognize thos
- Page 104 and 105: on creating regulatory systems that
- Page 107 and 108: ENDNOTES CHAPTER 1 1 United Nations
- Page 109 and 110: in Empirical FDI Studies,” in Doe
- Page 111 and 112: 25 See Koji Miyamoto, “Human Capi
- Page 113 and 114: 5 WIR 2004, p. 150, for a descripti
- Page 115 and 116: Countries—The Importance of ICT a
- Page 117: equirement to export a certain prop
- Page 122 and 123: Table A-2 Estimated Value of Inward
- Page 124 and 125: Table A-3 Estimated Distribution of
- Page 126 and 127: Table A-4 Developing Countries' Sha
- Page 128 and 129: Resource and Availability UNCTAD. 2
- Page 130 and 131: Resource and Availability Descripti
- Page 132 and 133: Resource and Availability UNCTAD. 2
- Page 134 and 135: Resource and Availability Moran, Th
- Page 136 and 137: Resource and Availability World Ban
- Page 138 and 139: Business linkages. Supplier-produce
- Page 140 and 141: Investment promotion agency (IPA).
- Page 142 and 143: Subnational investment promotion. A