Over the past decade and half, some developing countries have emerged as significant sources of FDI.

India is an emerging investor, with an OFDI stock of 6.6 billion in 2004, and its OFDI flows are increasing.

More than 64 per cent of Singapore's OFDI was in Asia.

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

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

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

Some 47 per cent of OFDI in 1990 came from this sector.

This figure is based on data on outward FDI stocks provided by the home countries.

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.

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

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.

Four fifths of the FDI stocks from developing countries were in services in 2002.

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.

FDI is negligible in primary activities and low in manufacturing.

Its OFDI stock reached 29 billion in 2004 and accounted for 67 per cent of the region's OFDI stock (see table 1).

While almost all (90 per cent) of its FDI stock is in developed countries, investment in other neighbouring African countries has recently increased, mainly targeting natural resources and basic industries.

economies together accounted for 11 per cent of the world's OFDI stock in 2004, compared with 7 per cent in 1990.

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).

Its share in the world FDI stock increased from 2 per cent in 1985 to 8 per cent in 2003 (table 1).

In certain industries, such as construction and business services, the share of developing countries reached more than 15 per cent of world FDI stock (annex table).

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

(Billions of dollars and percentage)

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.

Rough estimates, however, suggest that outward FDI from developing countries in other developing economies is increasing.

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.

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.

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.

Significant FDI from Hong Kong (China) and Singapore is undertaken by foreign affiliates operating in these economies.

Meanwhile, countries of South, East and South East Asia (mainly China, Malaysia and the Republic of Korea) locate almost 8 per cent of their total FDI stock in Africa (table 3).

Contraction of FDI

6. To promote the restitution and return of illicitly exported cultural property.

In the financial sector, Europe (United Kingdom, Netherlands and Belgium) and other economies such as the Netherlands Antilles, Liberia and other tax haven locations emerged as the most important destinations for OFDI in 1996.

The Benefits of Chinese FDI

Expert Meeting on the Impact of FDI on Development

Held at the Palais des Nations, Geneva,

The global FDI environment

E. Regional Development

The Department of Statistics (1991) estimates that OFDI stock from Singapore at the end of 1976 was S 1 billion.

Singapore OFDI stock, by industry and activity abroad, 1990, 1995, 2000, 2002, 1990 2002

FDI and Development Policy Issues Related to the Growth of FDI in Services

Outward FDI from developing countries is highly concentrated. Four of the five top home developing economies in terms of FDI stocks are in Asia (China, Hong Kong (China), Singapore and Taiwan Province of China) and one is from LAC (Brazil).

Most developing country micro enterprises operated outside legal frameworks, but the assets of these enterprises were greater than the FDI flows to some developing countries.

Programme Component F.1.3 Partnerships with Organizations of the Private Sector and of

The impact of FDI on development