FDI flows in services between developing countries are growing faster than flows between developed and developing countries.

Bangladesh, in common with many other LDCs, had liberalized its FDI regime. FDI flows to LDCs remained minimal, however.

Flows to developing countries appear to lead the recovery in global FDI.

(d) Appropriate harnessing of the potential for foreign direct investment (FDI) and encouraging increased FDI flows to small island developing States

Meanwhile, FDI flows bounced back in the United Kingdom and the United States.

Should South South cooperation in FDI flows be encouraged, and if so, how?

27. The representative of India said that the uneven distribution of FDI flows called for further work on the determinants of FDI.

However, only a handful of developing countries were able to attract significant flows of foreign direct investment (FDI), while over 100 developing countries received less than 1 per cent of the world s FDI flows.

Although worldwide FDI flows have expanded, including flows to developing regions, much of it is concentrated in a small number of countries.

FDI represents a highly significant level of financial flows from developed to developing countries.

The private sector is becoming the main source of FDI flows to developing countries.

In particular, the Asian experience illustrated that careful regulation of FDI flows was necessary.

South South FDI flows How big are they? , Transnational Corporations, 13, 1, pp. 149 177.

Another area requiring special attention is that of foreign direct investment (FDI) flows to Africa.

With regard to (a), EMS standards are unlikely to have significant effects on FDI flows.

Could home countries assume specific obligations regarding the promotion of FDI flows to developing countries?

1.What is the evidence (systematic or anecdotal) that BITs help to attract FDI flows to developing countries, including the technology and skills associated with FDI?

Foreign direct investment (FDI) and portfolio investments amounted to only 9.9 per cent and 2.1 per cent, respectively, of total net resource flows to the region, while FDI profit remittances slightly exceeded FDI inflows.

Regional integration in ASEAN had encouraged intra ASEAN investment, which contributes to South South FDI flows.

It is encouraging to note that the flows of FDI to some LDCs have slightly improved.

The developed world still accounts for nine tenths of world outward FDI flows, but FDI from developing countries has shown higher growth rates in the recent past.

OFDI from Asian developing economies was contributing to growing South South FDI flows and intra regional investment.

What was even more important was the decrease in the geographical and sectoral concentration of FDI flows.

In parallel to those efforts, all countries were invited to pursue policies enabling FDI and to consider, and where possible improve, measures that facilitate FDI flows to developing countries.

Many least developed countries did not receive FDI flows in 1996 and some of them have not been recipients since 1991 (source of data UNCTAD, FDI transnational corporation database).

She noted with satisfaction signs of an improvement in FDI flows to Africa and the least developed countries.

2.Do the provisions contained in BITs affect the quality of FDI flows that host developing countries receive?

The rest of African least developed countries have received FDI flows ranging between 1 million and 30 million.

Another feature of FDI flows to Africa is that they are largely concentrated in the oil and mining sectors.

He noted that the growth of FDI in developing countries had fallen short of the growth of FDI in general and emphasized the importance of joint efforts by the international community to expand FDI flows to developing countries, in particular LDCs.

Furthermore, he endorsed the view that investment rules should encourage FDI flows to developing countries, and shared the concern that biased, restrictive provisions would be an obstacle to those flows.

Its findings were quite sobering the African continent received very low levels of FDI flows, mostly in the extractive sectors.

What impact do BITs have on FDI flows and development, and how can agreements be strengthened from a development perspective?

That is particularly important in view of the inability of the LDCs to attract significant foreign direct investment (FDI) flows.

Portfolio flows and foreign direct investment (FDI) posted the strongest growth, accounting for more than two thirds of total private inflows.

Overall, however, the impact of FDI on Benin's economy had been relatively small due to the limited size of the flows.

Although worldwide FDI flows have quadrupled, including to developing regions, much of it is concentrated in a small number of countries.

20. FDI flows to developing countries reached an estimated 85 billion dollars in 1997 or five times their level in 199015.

6 Defined as net resource flows minus the interest payments on long term debt and profit remittances on account of FDI.

26. However, FDI is not a panacea and total flows should be monitored for example, a surge in FDI inflows can overvalue a currency s exchange rate as much as any other type of international finance.

She mentioned the positive contribution the Lomé Conventions had made with respect to FDI flows to Africa and the least developed countries.

Without FDI, there cannot be development and, without legal security, there will be no FDI. If we are to see truly global FDI flows, particularly to those countries that need them the most, we must begin to address the institutional deficiencies of the investment protection regime.

In particular, the secretariat apos s work should focus on (i) empirical studies on the effect of FDI on development as a whole (ii) steps that could be taken by home countries to promote FDI and (iii) studies on the impact of FDI liberalization measures on FDI flows and their consequent effects on trade and development.

Overall, FDI flows are expected to increase over the medium term because of improvements in the main fundamentals that drive FDI a broad based economic recovery, equity market valuations and mergers and acquisitions (M As) activity.

Privatizations had been the main engine behind the FDI flows, though the dependence upon too few investing countries had not permitted proper differentiation.