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UNCTAD/CD-TFT 1 FDI Trends & Developments European Regional Economic Forum 2010 The Role of FDI in...
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Transcript of UNCTAD/CD-TFT 1 FDI Trends & Developments European Regional Economic Forum 2010 The Role of FDI in...
UNCTAD/CD-TFT 1
FDI Trends & Developments
European Regional Economic Forum 2010
The Role of FDI in Developing Knowledge-Based Competitiveness
in European Regions
Elisabeth Tuerk Legal Expert, UNCTAD, Division on
Investment and Enterprise (DIAE), Geneva
UNCTAD/CD-TFT 2
Outline
• UNCTAD – some background • Latest trends & developments
• FDI & investment policies
• FDI & (regional) competitiveness
Entrepreneurship
Investment Policy Reviews
Inve
stmen
t Tre
nds
and P
olicy
Mon
itor
ISAR
IIAs
Investment Information
Systems
Mission:Investment and Enterprise for Development
Research & Analysis
Technical Assistance
Inve
stm
ent
Fac
ilita
tion
C
ompa
ct
Consensus Building
WIR WIF
UNCTAD – Some Background
UNCTAD/CD-TFT 4
The Crisis ended 4-year FDI boom
($ billions)
• Global FDI declined from $2 trillion (2007) to $1.7 trillion (2008)• FDI flows to developed economies fell by 29%, to $962 billion • FDI flows to developing economies rose 17%, to $621 billion• Transition economies posted a new record high, with inflows reaching $114 billion, a 26% increase
UNCTAD/CD-TFT 5
Global FDI Quarterly Index, 2000-2009
Base 100: quarterly average of 2005
UNCTAD/CD-TFT 6
Cross-border M&A Sales & Int. Greenfield Projects, 2007-
2009
UNCTAD/CD-TFT 7
Top Recipients of FDI Inflows
The US remained the largest recipient country, followed by France, China, UK & the Russian Federation.
The fact that half of the top 20 recipients are emerging economies is symbolic of the changing FDI landscape of 2008.
Global FDI inflows, top 20 economies, 2007–2008($ billion)
UNCTAD/CD-TFT 8
TNC’s Int. Investment Plans
UNCTAD/CD-TFT 9
WIR & Global Investment Trends Monitor
UNCTAD/CD-TFT 10
National Policy Trends: Overall more favourably to FDI
National policy changes towards FDI
6.012.0
21.0 23.0
94.088.0
79.0 77.0
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1992-2002 2003-2004 2005-2007 2008
Less favourable More favourable
However, in some countries a more restrictive FDI approach has emerged Additionally: signs of increasing “covert” protectionism, e.g.,
– favouring domestic investment or invoking “national security” exceptions that stretch the definition of national security
UNCTAD/CD-TFT 11
International Policy Trends: IIA Network Growing
•In 2008: 59 BITs and 75 DTTs were signed;•1st half of 2009: 25 BITs were signed;•By 1st half of 2009, totals: 2.717 BITs and 2.825 DTTs.
UNCTAD/CD-TFT 12
Other Int. Investment Agreements, 1957-2008
Growring
0
50
100
150
200
250
300
1957-1967 1968-1978 1979-1989 1990-2000 2001-2008
Nu
mb
er o
f II
As
oth
er t
han
BIT
s an
d D
TT
s
By period Cumulative
UNCTAD/CD-TFT 13
Resulting in ... A Spaghetti Bowl of IIAs
UNCTAD/CD-TFT 14
UNCTAD’s Quarterly Investment Policy Monitor
UNCTAD/CD-TFT 15
Impact of FDI
• FDI can improve the competitiveness of, e.g., • human resources, local firms, regions &
countries
• FDI can upgrade competitiveness, thr., e.g. • technology transfer, knowledge spillovers, local
innovation, enhancing exports, infrastructure projects
• Virtuous cycle: • FDI improves competitiveness while
competitiveness also attracts FDI
UNCTAD/CD-TFT 16
Harnessing FDI for (Regional) Competitiveness
• Improving locational determinants of FDI, • both economic & policy determinants
• Strengthening (regional) investment promotion • e.g. regional investment promotion agencies
• Offering the right incentives for investors • e.g. tax incentives, special economic zones,
science and technology parks
UNCTAD/CD-TFT 17
To Conclude...
• Upgrading competitiveness focus on the relevant types of FDI
• (Regional) policies focus on these relevant types of FDI
• Regional policy on FDI interlinked & coherent with national policies
UNCTAD/CD-TFT 18
Visit UNCTAD Websites
www.unctad.org/diae www.unctad.org/wirwww.unctad.org/fdistatistics