Development and Globalization: - Unctad

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OVERVIEW DEFINITIONS As international production systems play an increasingly important economic role, it also becomes more important to measure the extent and impact of the activities of transnational corporations (TNCs) and their foreign affiliates. There are now about 64,000 TNCs engaged in international production, with about 866,000 affiliates located abroad. Foreign affiliates also raise investment funds from sources other than their parent firms. Their production capacity, not sufficiently reflected by the value of foreign direct investment (FDI) flows, can be illustrated by the ratio of FDI inward stock to total assets, which is only about one to four. The number of employees in foreign affiliates worldwide, a measure of the employment capacity of TNCs, has grown dramatically: it reached 53 million in 2002, up from 19 million two decades ago. Also, in a number of developing countries, the share of employment in foreign affiliates compared to total employment rose during the past two decades. Sales by foreign affiliates grew about sevenfold during the same period. This share varies among host countries; for example, in 1999 it was 28% for China and 81% for Singapore. Foreign affiliates tend to have higher labour productivity (expressed as value added per employee) than domestic firms. Their innovative activity in some developing and transition economies is also significant: for example, in Hungary and Taiwan Province of China the share in total research and development is over 50%. Developed countries, specifically in the European Union, still host the largest number of TNCs. Developing economies are home to less than one quarter of TNCs, while they host more than half of the foreign affiliates worldwide. Most of these affiliates are in Asia, followed by Latin America and the Caribbean. To learn more 44 3.2 Foreign affiliates ● A ffoorreeiiggnn aaffffiilliiaattee or direct investment enterprise is an incorporated or unincorporated enterprise in which a foreign direct investor, resident in another economy, owns a stake that permits a lasting interest in the management of that enterprise (an equity stake of 10% for an incorporated enterprise or its equivalent for an unincorporated enterprise). For other definitions, refer to 3.1A. DATA SOURCES [1] UNCTAD, World Investment Report and World Investment Directory series (various issues). In its WWoorrlldd IInnvveessttmmeenntt DDiirreeccttoorryy series, UNCTAD provides statistics on FDI and the activities of TNCs worldwide. Each volume contains FDI country profiles for a particular region. The individual FDI country profiles are accessible online at www.unctad.org/fdistatistics. UNCTAD’s FDI/TNC databases contain data on inward and outward flows and stocks of FDI as well as the operations of TNCs and their foreign affiliates, based on national data sources. More detailed and customized information, as well as information on the methodology used for data compilation, can be obtained at statfdi@unctad.org.
Selected indicators of international production, 1982 - 2002 [1] In % and billion US$ Production indicator Parent corporations and foreign affiliates [1] Number for latest year available Region Parent corporations Foreign affiliates World 63 834 866 119 Developing countries 13 936 517 611 Africa 1 202 7 049 Africa less South Africa 261 5 005 Latin America and the Caribbean 2 022 45 383 Asia 10 685 464 631 West Asia 751 11 672 Central Asia - 7 687 South, East and South-East Asia 9 934 445 272 South, East and South-East Asia less China 9 584 81 387 Oceania 27 548 Countries in Central and Eastern Europe 850 242 678 Developed countries 49 048 105 830 North America 4 674 19 437 Europe 39 715 79 546 Others Memorandum 4 659 6 847 Developing countries less China 13 586 153 726 Least developed countries 38 1 363 76 Hungary 24 95 China 5 Foreign affiliates in host economies 3.2 A Average annual growth rate Value at current prices (billion US$) 1986-1990 1991-1995 1996-2000 2001 2002 2002 Sales of foreign affiliates 16.0 10.1 10.9 9.2 7.4 17 685 Gross product of foreign affiliates 17.3 6.7 7.9 14.7 6.7 3 437 Total assets of foreign affiliates 18.8 13.9 19.2 4.5 8.3 26 543 Exports of foreign affiliates 13.5 7.6 9.6 -3.3 4.2 2 613 Employment of foreign affiliates (thousands) 5.5 2.9 14.2 -1.5 5.7 53 094 Gross fixed capital formation 13.4 4.2 1.0 -3.9 1.3 6 422 Royalties and licences fees receipts 21.3 14.3 6.2 -3.1 .. 72 Export of goods and non-factor services 15.6 5.4 3.4 -3.3 4.2 7 838 Significance of value added of foreign affiliates in manufacturing [1] (in %) Value added of foreign manufacturing affiliates Value added of domestic manufacturing companies Shares of foreign affiliates in sales of selected countries [1] (in %) 60 19 72 82 Singapore China United States Ireland 28 18 81 Sales of foreign affiliates Sales of domestic companies 40 45
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2004 Development and Globalization:
Page 4 and 5: ii Note Development and Globalizati
Page 6 and 7: This publication was prepared by a
Page 8 and 9: vi Contents Notes ii Foreword iii A
Page 11 and 12: 1 Countries, population and economi
Page 13 and 14: 3 000 2 000 1 000 0 180 120 60 0 50
Page 15 and 16: 33 Exports by commodity group, 2001
Page 17 and 18: 160 140 120 100 80 60 40 20 0 140 1
Page 19 and 20: 2001 1990 1980 1970 12 8 4 0 600 50
Page 21 and 22: Population structure by age, 2000 [
Page 23 and 24: 1970 2000 Illiteracy rate [1] Devel
Page 25 and 26: 100 90 80 70 60 50 40 30 20 10 0 Ma
Page 27 and 28: 60 50 40 30 20 10 0 Participation o
Page 29 and 30: Share of nominal GDP by region, 200
Page 31: 80 70 60 50 40 30 20 10 0 Gross dom
Page 34 and 35: OVERVIEW DEFINITIONS Total aggregat
Page 36 and 37: 26 2.1 External finance and debt OV
Page 38 and 39: OVERVIEW DEFINITIONS The total exte
Page 40 and 41: OVERVIEW DEFINITIONS Ratios of debt
Page 42 and 43: OVERVIEW DEFINITIONS Global foreign
Page 44 and 45: OVERVIEW DEFINITIONS In the past tw
Page 46 and 47: 36 2.2 Foreign direct investment OV
Page 49 and 50: 3 Transnational corporations and fo
Page 51 and 52: World's top 50 non-financial TNCs i
Page 53: Largest transnational corporations
Page 58 and 59: OVERVIEW DEFINITIONS In 2002 the va
Page 60 and 61: OVERVIEW DEFINITIONS An important f
Page 62 and 63: OVERVIEW DEFINITIONS Over the past
Page 64 and 65: OVERVIEW DEFINITIONS The past 30 ye
Page 66 and 67: OVERVIEW DEFINITIONS During the las
Page 68 and 69: OVERVIEW DEFINITIONS Between 1980 a
Page 70 and 71: OVERVIEW DEFINITIONS International
Page 72 and 73: OVERVIEW DEFINITIONS The main devel
Page 74 and 75: OVERVIEW DEFINITIONS The world’s
Page 76 and 77: OVERVIEW DEFINITIONS International
Page 78 and 79: OVERVIEW DEFINITIONS Tariffs of dev
Page 80 and 81: OVERVIEW DEFINITIONS The past two d
Page 83 and 84: 5 Production and international trad
Page 85 and 86: Production of selected commodities
Page 87 and 88: 80 70 60 50 40 30 20 10 0 120 100 8
Page 89 and 90: 1966 2000 Share of commodity export
Page 91 and 92: 100 90 80 70 60 50 40 30 20 10 Dist
Page 93 and 94: Commodity price indices [1] 400 300
Page 95: 50 40 30 20 10 Commodity price vola
Page 98 and 99: OVERVIEW DEFINITIONS Global industr
Page 100 and 101: 90 6.2 International trade in manuf
Page 102 and 103: 92 6.2 International trade in manuf
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7 Information and communication tec
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Developed countries Developed count
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100 90 80 70 60 50 40 30 20 10 4 00
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AFRICA 58 North Africa 7 Algeria Eg
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CEPGL 3 (Economic Community of the
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ANCOM Andean Community APEC Asia-Pa
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