Table 1. FDI outward stock, by region and major economies, 1980 2003

Table 1. FDI outward stock, by region and major economies, 1980 2003 (concluded)

The Asian and Pacific region's outward FDI stock was estimated at 607 billion in 2003.

Annex table. Estimated outward FDI stock from developing economies, by sector industries, 1990 and 2002

Africa has the smallest stock of outward FDI, concentrated in five countries South Africa, Nigeria, the Libyan Arab Jamahiriya, Liberia and Botswana (in that order) that together accounted for about 85 per cent of Africa's outward stock of 39 billion in 2003.

The estimate of 400 billion of outward stock of South South FDI is based on home country data.

Developing Asia Pacific countries have been the largest and fastest growing outward investors the total stock of outward foreign direct investment through 2003 amounted to 635 billion, which was three quarters of total outward foreign direct investment from all developing economies.

With outward FDI stock of 859 billion in 2003, transnational corporations from developing countries are becoming significant international players.

While this represents a mere 5 per cent of the global stock of outward FDI, it corresponds to about 50 per cent of the stock of FDI from developing countries.

In 2002, services accounted for about 55 per cent of the total stock of inward FDI in developing countries and some 85 per cent of outward FDI stock for developing countries.

Developed countries remain the main source of outward FDI, while developing countries' share has also grown (from one per cent in 1990 to 10 per cent of global outward FDI services stock in 2002).

The outward stock of South South FDI, virtually nil at the end of the 1970s, was estimated at around 400 billion in 2002.

The fastest growth in outward FDI was noted for South, East and South East Asia the share of this region in the world outward FDI stock rose from 2.3 per cent to 7.4 per cent between 1990 and 2003.

Latin America and the Caribbean are the second largest investing region in the developing world, with an outward FDI stock reaching 184 billion in 2003.

Developing countries accounted for at least 4 per cent and 10 per cent of outward FDI stock in the manufacturing and services sectors, respectively, by 2002.

The largest home sources of South South FDI (based on outward FDI stock) were Hong Kong (China) by far the largest ( 283 billion in stock) Brazil ( 45 billion), Singapore ( 40 billion), the Republic of Korea ( 17 billion) and Malaysia ( 15 billion).

Accounting for 7 per cent of the world FDI outward stock in 1990, their share rose to over 10 per cent in 2003 ( 0.9 trillion) (table 1).

Outward

In absolute terms, the outward FDI stock from developing countries increased from 60 billion in 1980 to 129 billion in 1990 and 859 billion in 2003 (table 1).

For example, offshore financial centres including the Bahamas, Bermuda and the British Virgin Islands were host to for about 70 per cent of Brazil's total FDI outward stock in 2003.

Outward reinsurance and or

Internationalization through outward investment

The global stock of outward FDI in services from developing countries was multiplied by a factor of 43 between 1990 and 2002, compared with a factor of 5 for FDI from developed countries.

Experts also noted that the share of host developing countries had increased significantly during the 1990s, and had been estimated to represent half of the outward FDI stock of developing countries in 2002.

There are limits to outward investment, lack of insurance for outward investment, and exchange rate controls.

Outward FDI from developing countries

China An emerging FDI outward investor.

Linkages, value chains and outward investment

run Stock level at April 1998 Excess stock

Finally, the discussion on outward investment promotion had shown that it would be useful to have another meeting on cooperation between inward and outward investment agencies, with more active participation by outward investment agencies.

In both cases, FDI from developing countries is likely to be underestimated in the case of the figure based on outward data ( 859 billion), outward FDI stock may not be fully reported by some offshore financial centres and in that of the figure based on inward data ( 877 billion), information on the sources of FDI is not available for those centres.

stock

Stock

failing to effect outward reinsurance as required

India's outward FDI A giant awakening? Geneva.

1981 1988 Outward Bound Association of Zambia

b) Promotion of outward foreign direct investment

II. PROMOTION OF OUTWARD FOREIGN DIRECT INVESTMENT

This inefficiency is the result of a combination of factors, including inadequate rolling stock and equipment, the ageing of the rolling stock, which has led to frequent breakdowns and delays in freight movement, the poor condition of the rail tracks, and inefficient management practices.

Singapore is an established outward investor among the developing economies. It is the second largest outward direct investor after Hong Kong (China).

A panel of experts on FDI presented data related to the growth of FDI outflows from developing countries, this growth being fastest in the Asia Pacific region, which now accounted for nearly three quarters of developing country outward FDI stock.

Outward FDI from developing countries is highly concentrated.

In LAC, most outward investment is intra regional.

Outward FDI From Brazil Poised For Take Off?

Source Computation based on RIS Outward FDI dataset.