Luxembourg and Spain, both major recipients of FDI in 2003, received lower FDI inflows last year.

Net outflows have significantly offset the benefits derived from FDI inflows.

Each of the developing regions experienced an increase in FDI inflows in 2004.

One of the objectives of NEPAD is to attract high and stable inflows of FDI.

Although a marked liberalization, and deregulation and privatization policies, had been implemented, FDI inflows to Africa as a proportion of total developing country inflows had declined.

However, Mexico recorded a strong recovery in FDI, and inflows into Brazil are picking up again.

FDI inflows into developed countries fell by an estimated 16 per cent to 321 billion in 2004.

The third panelist highlighted the trends and development of FDI inflows and outflows in the Asia Pacific region.

UNCTAD's efforts to help developing countries raise FDI inflows were commendable, and its work in this context should continue.

FDI inflows had become significant in Benin only after the establishment of a market oriented economy in the late 1980s.

The Libyan Arab Jamahiriya will significantly increase its FDI inflows as a result of the end of sanctions in 2003.

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

Following three years of decline, global FDI inflows are estimated to have increased by 6 per cent in 2004 to some 612 billion.

As shown in table 2, over the past six years there have been fairly regular but volatile net inflows of FDI into Africa.

While the strategy of taking advantage of FDI inflows had been successful in other developing countries, this had not been the case in Africa.

For starters, countries should embrace policies that favor foreign direct investment (FDI) over inflows that can be withdrawn more quickly, such as foreign bank loans, debt, or equity investments. My research with Hui Tong of the International Monetary Fund shows that countries whose capital inflows that are mainly in the form of FDI tend to be more resilient to foreign financial shocks.

The fiscal impact of FDI was slight, and the inflows had not been able create jobs, establish linkages with the rest of the economy and transfer technology.

Following the temporary decline of the 2003 level to 27 billion, FDI inflows to CEE were at an estimated 36 billion in 2004, reaching a record high.

He noted that even though FDI inflows into Africa had increased in 2003 and 2004, most of this increase was accounted for by investment in natural resources exploitation.

High prices for key commodities are expected to encourage TNCs to pursue new exploration projects in African countries, which will lead to sustained high levels of FDI inflows.

He noted that even though FDI inflows into Africa had increased in 2003 and 2004, most of this increase was accounted for by investment in natural resources exploitation.

The positive impact of FDI had not been sufficiently far reaching due to low overall inflows, and this had been reflected in the low level of change in the productive structure since 1970.

For example, total 2004 FDI inflows into sub Saharan Africa, a region that contains many of the world's least developed countries (LDCs), accounted for less than 3 per cent of the world total.

Source UNCTAD, FDI TNC database (www.unctad.org fdi statistics).

This increase is related mainly to inflows into developing

The global FDI environment

In the case of ASEAN, intraregional FDI accounts for close to one fifth of the total FDI.

But while the Government has received FDI to support tourism infrastructure in Mount Kumgang, FDI remains insignificant

The Benefits of Chinese FDI

Emerging FDI from developing countries

The global FDI environment 3

Outward FDI from developing countries

Source UNCTAD, FDI TNCs database.

Mexico and Brazil accounted for half of the regional total inflows.

Recent trends in FDI have highlighted the emergence of FDI from developing countries, particularly but not only from Asia.

Estimates of South South FDI can be obtained by using information from home developing countries (on the destination of their outward FDI) or from host developing countries (on the source of their inward FDI).

The impact of FDI on development

The shift of FDI to services

The case of South South FDI

China An emerging FDI outward investor.

(c) Allowing foreign direct investment (FDI).

One of the reasons for this is that in most Latin American and Caribbean countries, FDI policies focus on attracting large quantities of FDI and do not pay much attention to the nature of FDI.

Some experts stressed that policies had been traditionally oriented to attract FDI and were not really defined as promoting outward FDI.

The report also made pertinent observations on the effects of FDI, or a lack of FDI, on economic growth and poverty reduction.

The note examines changes in foreign direct investment (FDI) patterns, and in particular the role of developing countries in world FDI outflows.