UNCTAD Report Finds Developing Countries Take Lead in FDI Receipts
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The 2013 edition of the World Investment Report, published by the UN Conference on Trade and Development (UNCTAD), shows that in 2012, for the first time ever, developing countries received a greater share of foreign direct investment (FDI) than developed economies, amid a global decline in global FDI flows.

UNCTAD26 June 2013: The 2013 edition of the World Investment Report, published by the UN Conference on Trade and Development (UNCTAD), shows that in 2012, for the first time ever, developing countries received a greater share of foreign direct investment (FDI) than developed economies, amid a global decline in global FDI flows.

“Global Value Chains: Investment and Trade for Development” analyzes global FDI flows and provides strategic development options and practical advice for improving global value chains (GVCs) in support of more inclusive growth and sustainable development.

The analysis of global and regional investment shows that, among other trends: global FDI fell by 18% in 2012; developing countries for the first time absorbed the majority of global FDI (52%); FDI in Least Developed Countries (LDCs) reached a record high; and FDI flows to developed countries dropped by 32%.

With regard to investment policy trends, the report shows that: investment policy making is increasingly geared towards new development strategies; more international investment agreements (IIAs) are negotiated on the regional and bilateral level; and IIAs include more sustainable development elements.

Regarding GVCs, the report identifies an increase in international fragmentation and dispersion of production processes that are coordinated by transnational corporations. While GVCs can make a significant contribution to development, they also involve substantial risks and increase double counting in international trade. The report therefore recommends that countries make strategic choices regarding their participation in GVCs and develop policies based on sound analysis of associated benefits and costs. [UN Press Release] [UNCTAD Press Release] [Publication: World Investment Report 2013 – Global Value Chains: Investment and Trade for Development]

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