(a) Africa Major sources of inward FDI stock, as reported by investing economies

If inward FDI stock data from the host economy are used, the value of FDI stock from developing countries is somewhat higher ( 877 billion).

This corresponds to about a third of the inward FDI stock in developing countries.

On the inward side, developing countries' FDI has been increasing (to 25 per cent of inward FDI stock in services), though developed countries remain the main recipients.

If inward FDI stock data from recipient countries are used, the value of South South FDI is higher, at least about 700 billion.

Russian FDI in the EU25 (inward)

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.

These economies accounted for about 38 per cent of the total inward FDI stock of Africa in 2002.

Net EU25 FDI ows (outward minus inward)

They accounted for 91 per cent of the total inward FDI stock of Central and Eastern Europe in 2002.

They account for 42 per cent of the total inward FDI stock of Latin America and the Caribbean in 2002.

Deregulation and greater openness, moreover, will generate inward FDI.

Offshore financial centres in the region are not covered because they do not provide geographical breakdown by source of inward FDI stock.

These economies account for 99 per cent of the total inward FDI stock of South, East and South East Asia in 2002.

Major sources of FDI stock of selected regions, 2002

FDI outward stock, by region and major economies, 1980 2003

(b) Latin America and the Caribbean, South, East, and South East Asia and Central and Eastern Europe Major sources of inward FDI stock as reported by host economies (concluded)

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

a Geographical breakdown of inward FDI in Africa is not available for most African countries.

If inward FDI stock data from recipient countries are used, the largest sources of South South FDI were Hong Kong (China) ( 223 billion), the British Virgin Islands ( 111 billion), China (81 billion), Singapore ( 54 billion) and Taiwan Province of China ( 49 billion).

Indeed, South Africa and Angola alone accounted for 73 of the region s inward FDI in 2003.

Competition from foreign firms is everywhere through imports, inward FDI and non equity forms of participation.

Therefore, the shares for developing economies in world FDI stock were underestimated.

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.

The combined inward flow of FDI to all LLDCs amounted to US 6.4 billion or roughly four fifths of the FDI flows to Singapore in 2002.

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

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).

But what would an appreciation of the renminbi do to China s inward and outward foreign direct investment (FDI)?

Investment promotion agencies for inward FDI and OFDI, both in developing and developed countries, could coordinate their efforts.

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

Inward pulling causes inward acceleration

Sources World Bank, World Bank Development Indicators 2005 (GDP per capita) and UNCTAD, UNCTAD Handbook of Statistics, 2004 (inward FDI).

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.

Inward

These five economies accounted for 72 per cent of the total FDI stock from the South in 2002.

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

The share of inward FDI in the distribution sector is relatively small as most investment is directed towards the oil and gas industry.

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

Intra Africa Only about 3 per cent of FDI stock in Africa originated from Africa (table 3), mainly in the form of South Africa's FDI in neighbouring countries (Botswana, Mozambique, Mauritius).

a Based on inward stock data of Argentina, Brazil (2000), Chile (2001), Colombia (2000), El Salvador and Paraguay (2001), Peru and Venezuela.

a Inward redeployment.

Again, Inward Out.

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.

While export expansion delivered growth in this century, import substitution and inward foreign direct investment (FDI) will lead to increasing productivity in Japan in the next.

The Department of Statistics does not publish annual flow data on outward FDI from Singapore. Instead, only stock data are published.