Foreign direct investment

Posted: May 20, 2009 in News n Funs

Foreign direct investment (FDI) in its classic form is defined as a company from one country making a physical investment into building a factory in another country. It is the establishment of an enterprise by a foreigner. Its definition can be extended to include investments made to acquire lasting interest in enterprises operating outside of the economy of the investor. The FDI relationship consists of a parent enterprise and a foreign affiliate which together form a multinational corporation (MNC). In order to qualify as FDI the investment must afford the parent enterprise control over its foreign affiliate. The IMF defines control in this case as owning 10% or more of the ordinary shares or voting power of an incorporated firm or its equivalent for an unincorporated firm; lower ownership shares are known as portfolio investment.

History
Foreign direct investment (FDI) is a measure of foreign ownership of productive assets, such as factories, mines and land. Increasing foreign investment can be used as one measure of growing economic globalization. Maps below show net inflows of foreign direct investment as a percentage of gross domestic product (GDP). The largest flows of foreign investment occur between the industrialized countries (North America, North West Europe and Japan). But flows to non-industrialized countries are increasing.

Period    FDI Outflow    FDI Inflows    Net
1960-69    $ 42.18 bn    $ 5.13 bn    + $ 37.04 bn
1970-79    $ 122.72 bn    $ 40.79 bn    + $ 81.93 bn
1980-89    $ 206.27 bn    $ 329.23 bn    - $ 122.96 bn
1990-99    $ 950.47 bn    $ 907.34 bn    + $ 43.13 bn
2000-07    $ 1,629.05 bn    $ 1,421.31 bn    + $ 207.74 bn
Total    $ 2,950.69 bn    $ 2,703.81 bn    + $ 246.88 bn

According to CIA, Macau is in the first place that have a great GDP, around 15% (estimated 2008). This is ranking of world countries’s GDP according to CIA (estimated 2008)
Rank    Country            GDP – real growth rate (%)
1     Macau                  15.00
2     Angola              13.20
3     Azerbaijan              11.60
4     Equatorial Guinea          11.20
5    Qatar                  11.20
6     Anguilla              10.20
7     Turkmenistan              10.00
8     China                  9.80
9     Iraq                  9.80
10     Belarus             9.20
37     Cambodia              6.80
41     India                  6.60
42     Iran                  6.50
49     Papua New Guinea          6.30
52     Vietnam              6.20
56     Indonesia              6.10
85     Malaysia              5.10
96     Timor-Leste              4.70
100     Philippines              4.60
115     World                  3.80
119     Thailand              3.60
177     Mexico              1.40
179    United States              1.30
180     Germany              1.30
183     Singapore              1.20
184     Spain                  1.10
185     European Union          1.00
188     Burma                  0.90
194     France              0.70
196     United Kingdom          0.70
201     New Zealand              0.20
205     Japan                  -0.40
208     Italy                  -0.70
213     Korea, North              -2.30
216     Latvia              -5.00
217     Zimbabwe              -12.6

If we look GDP of world countries from purchasing power parity, World get $ 69,490,000,000,000 and sit in first place, then EU get $ 14,820,000,000,000 in 2nd place, and USA get $ 14,290,000,000,000 in 3rd place. This is the table of GDP world countries’s GDP according CIA (estimated 2008).
Rank    Country     GDP (purchasing power parity)
1     World          $ 69,490,000,000,000
2     European Union  $ 14,820,000,000,000
3     United States      $ 14,290,000,000,000
4     China          $ 7,800,000,000,000
5     Japan          $ 4,348,000,000,000
6     India          $ 3,267,000,000,000
7     Germany      $ 2,863,000,000,000
8     United Kingdom  $ 2,231,000,000,000
9     Russia      $ 2,225,000,000,000
10     France      $ 2,097,000,000,000
11     Brazil      $ 1,990,000,000,000
12     Italy          $ 1,821,000,000,000
13     Mexico      $ 1,559,000,000,000
14     Spain          $ 1,378,000,000,000
15     Canada      $ 1,307,000,000,000
16     Korea, South      $ 1,278,000,000,000
17     Indonesia      $ 915,900,000,000
18     Turkey      $ 906,500,000,000
19     Iran          $ 842,000,000,000
20     Australia      $ 800,500,000,000
26     Thailand      $ 553,400,000,000
32     Malaysia      $ 386,600,000,000
46     Vietnam      $ 241,800,000,000
47     Singapore      $ 240,000,000,000
62     New Zealand      $ 116,600,000,000
123     Brunei      $ 20,250,000,000
138     Papua New Guinea  $ 13,290,000,000
178     Timor-Leste      $ 2,713,000,000

Stock of FDI in world (at home) reachs 16,650,000,000,000.00, USA is 2,220,000,000,000.00, and UK is 1,409,000,000,000.00. These is the table of Stock of FDI in all of countries.
Rank     Country     Stock of direct foreign investment – at home
1     World          16,650,000,000,000.00
2     United States      2,220,000,000,000.00
3     United Kingdom  1,409,000,000,000.00
4     Hong Kong      1,235,000,000,000.00
5     France      1,234,000,000,000.00
6     Germany      924,700,000,000.00
7     China          758,900,000,000.00
8     Belgium      733,900,000,000.00
9     Netherlands      726,900,000,000.00
10     Spain          606,800,000,000.00
20     Singapore      225,700,000,000.00
24     India          142,900,000,000.00
25     Japan          139,700,000,000.00
31     Korea, South      103,700,000,000.00
35     Malaysia      92,760,000,000.00
36     Thailand      80,830,000,000.00
43     Indonesia      63,460,000,000.00
52     Vietnam      43,060,000,000.0
58     Philippines      20,780,000,000.00

Rank     Country     Stock of direct foreign investment – abroad
1     World          16,220,000,000,000.00
2     United States      2,751,000,000,000.00
3     France      1,889,000,000,000.00
4     United Kingdom  1,841,000,000,000.00
5     Germany      1,360,000,000,000.00
6    Hong Kong      1,079,000,000,000.00
7     Netherlands      872,500,000,000.00
8     Spain          738,500,000,000.00
9     Switzerland      621,700,000,000.00
10     Japan          597,000,000,000.00
15     Australia      301,100,000,000.00
20     Singapore      142,400,000,000.00
27     Korea, South      74,600,000,000.00
30     India          54,210,000,000.00
32     Malaysia      50,080,000,000.00
48     Thailand      7,013,000,000.00
52     Philippines     5,564,000,000.00
54     Indonesia      4,277,000,000.00

Source:
http://www.cia.gov/library/publications/the-world-factbook/rankorder
http://www.wikipedia.com

About these ads

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s