the FDI statistics for 2003
Filed in archive Global Economy by tj on September 25, 2004
UNCTAD.org has published the latest "World Investment Report" of global investment activities (PDF, 1800k). This document is a very rich resource for statistics (486 pages!) in global investment activities and even lists most trans-national M&A activities.
"FDI inflows declined by 18% (to $560 billion) in 2003, following a massive decline of 41% in 2001 (from $1.4 trillion in 2000 to $818 billion) and another 17% in 2002 (to $679 billion) (figure I.1). But FDI outflows rose in 2003 by 3%, to $612 billion,1 and prospects are good for 2004 and beyond (section D below). Flows to developing countries rose already by 9%.2 Excluding Luxembourg, China was the largest host country ahead of France and the United States. Cross-border mergers and acquisitions (M&As) -- the key driver of global FDI since the late 1980s -- remain weak, but they started to pick up in 2004, joining other healthy factors. Policies on FDI continue to become more liberal, and both countries and enterprises have been increasing their degrees of transnationality."
"
Foreign direct investment is increasingly
shifting towards services. Service industries that,
until recently, were largely national, are
becoming transnational. All countries are affected
by the rise of services FDI and the broad-based
growth of service TNCs. What does this mean
for the development prospects of host countries?
FDI in services, as in manufacturing, has the
potential to enhance, directly and indirectly, the
efficiency, productivity and supply capacity of
host-country industries, thereby benefiting the
economy as a whole. But it can also entail risks
and costs against which the benefits need to be
weighed carefully.
...The tradability of services Offshoring reflects nothing less than a revolution in the tradability of services. Traditionally, most services have been �nontradable� in that they require buyers and sellers to be in the same place at the same time. Unlike physical products, they could not be traded between parties located in different countries; a haircut, for instance, is impossible to deliver across a distance. Many services, however, do not require physical proximity, but have usually taken place face-to-face because of technical constraints, habits or customs.
...The tradability of services Offshoring reflects nothing less than a revolution in the tradability of services. Traditionally, most services have been �nontradable� in that they require buyers and sellers to be in the same place at the same time. Unlike physical products, they could not be traded between parties located in different countries; a haircut, for instance, is impossible to deliver across a distance. Many services, however, do not require physical proximity, but have usually taken place face-to-face because of technical constraints, habits or customs.
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