《国际投资》课程教学资源（书籍文献）世界投资报告（2016）World Investment Report, FDI from Developing and Transition Economies - Implications for Development

UNITED NATIONS CONFERENCE ON TRADE AND DEVELOPMENT World Investment Report 2006 FDI from Developing and Transition Economies: Implications for Development United Nations New York and Geneva,2006

UNITED NATIONS CONFERENCE ON TRADE AND DEVELOPMENT World Investment Report United Nations New York and Geneva, 2006 2006 FDI from Developing and Transition Economies: Implications for Development

NOTE ated n attracting and from FDI and in building their tive c apaeitend building and enterprise development hatso e of develo r statistic Transition economies:South-East Europe and the Commonwealth of Independent States Developing economies:in general all economies not specified above The ref endorsement by UNCTAD na The following symbols have been used in the tables A dash(-)indicates that the item is equal to zero or its value is negligible A blank in a table indicates that the item is not applicable,unless otherwise indicated. A slash()between dates representing years,e.g1994/95,indicates a financial year. yr-195 the full. Reference to"dollars"()means United States dollars.unless otherwise indicated. Annual rates of growth or change.unless otherwise stated.refer to annual compound rates Details and percentages in tables do not necessarily add to totals because of rounding. The material contained in this study may be freely quoted with appropriate acknowledgement UNITED NATIONS PUBLICATION Sales No.E.06.ILD.11 1SBN92-1-112703-4 Printed in Switzerland

ii NOTE As the focal point in the United Nations system for investment and technology, and building on 30 years of experience in these areas, UNCTAD, through DITE, promotes understanding of key issues, particularly matters related to foreign direct investment and transfer of technology. DITE also assists developing countries in attracting and benefiting from FDI and in building their productive capacities and international competitiveness. The emphasis is on an integrated policy approach to investment, technological capacity building and enterprise development. The terms country/economy as used in this Report also refer, as appropriate, to territories or areas; the designations employed and the presentation of the material do not imply the expression of any opinion whatsoever on the part of the Secretariat of the United Nations concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries. In addition, the designations of country groups are intended solely for statistical or analytical convenience and do not necessarily express a judgement about the stage of development reached by a particular country or area in the development process. The major country groupings used in this Report follow the classification of the United Nations Statistical Office. These are: Developed countries: the countries members of the OECD (other than Mexico, the Republic of Korea and Turkey), plus the new European Union member countries which are not OECD members (Cyprus, Estonia, Latvia, Lithuania, Malta and Slovenia), plus Andorra, Israel, Liechtenstein, Monaco and San Marino. Transition economies: South-East Europe and the Commonwealth of Independent States. Developing economies: in general all economies not specified above. The reference to a company and its activities should not be construed as an endorsement by UNCTAD of the company or its activities. The boundaries and names shown and designations used on the maps presented in this publication do not imply official endorsement or acceptance by the United Nations. The following symbols have been used in the tables: Two dots (..) indicate that data are not available or are not separately reported. Rows in tables have been omitted in those cases where no data are available for any of the elements in the row; A dash (-) indicates that the item is equal to zero or its value is negligible; A blank in a table indicates that the item is not applicable, unless otherwise indicated; A slash (/) between dates representing years, e.g., 1994/95, indicates a financial year; Use of a hyphen (-) between dates representing years, e.g., 1994-1995, signifies the full period involved, including the beginning and end years; Reference to "dollars" ($) means United States dollars, unless otherwise indicated; Annual rates of growth or change, unless otherwise stated, refer to annual compound rates; Details and percentages in tables do not necessarily add to totals because of rounding. The material contained in this study may be freely quoted with appropriate acknowledgement. UNITED NATIONS PUBLICATION Sales No. E.06.II.D.11 ISBN 92-1-112703-4 Copyright © United Nations, 2006 All rights reserved Printed in Switzerland

PREFACE 's World aorseisageaginocesooeadhctnotnnsosteatwg The re ses that such outward investment offers an additional avenue for developi can help firms ac aaenpoctesheaeoYmateuheasksaxoosedseeah outward investment. From a host-country perspective the rise of transnational corporations from developing and transition investment into many least developed mutual development ga w this form of S in Developed countries and their firms will face new competition for various resources and assets eywll asndewortnclbrtion They will have tobm has omie pliecao aeeaweshoaogge Finally.the of corporations from developing and amCaA9meamRiaa,Saoro9gn9m2cimgtmgosTlneper8rRabencg s a step towar Kofi A An New York,July 2006 Secretary-General of the United Nations

iii PREFACE This year’s World Investment Report highlights the changing role of developing countries and transition economies in global foreign direct investment and the international production system. It examines their emergence as significant sources of foreign direct investment as well as the underlying factors and broader implications. The Report stresses that such outward investment offers an additional avenue for developing countries to link up to global markets and production systems. If managed successfully, these investments can help firms access markets, natural resources, foreign capital, technology or various intangible assets that are essential to their competitiveness but that may not be readily available in their home countries. Appropriate policies are needed to mitigate the risks and costs and seize the opportunities arising from outward investment. From a host-country perspective the rise of transnational corporations from developing and transition economies expands the range of potential sources of finance, technology and management know-how. This is of particular relevance to low-income countries. As shown in the Report, inflows of foreign investment into many least developed countries come primarily from other developing countries. It is important to consider how this form of South-South cooperation can be further strengthened to promote mutual development gains. Developed countries and their firms will face new competition for various resources and assets, but they will also find new opportunities for economic collaboration. They will have to become accustomed to many more transactions involving investors from developing and transition economies as they expand internationally. In fact, the emergence of these new sources of investment has broader implications for international economic relations as it reflects their growing clout in the world economy. Finally, the emergence of transnational corporations from developing and transition economies imparts greater momentum to South-South cooperation. New investment corridors are opening up between Latin America, Africa and Asia as part of this dynamic activity, with positive prospects for advancing development. To capitalize on this opportunity, policy-makers from home and host developing countries need to gear themselves into action and, for this, they will require insightful knowledge and analysis. This year’s World Investment Report is a step towards this goal. Kofi A. Annan New York, July 2006 Secretary-General of the United Nations

ACKNOWLEDGEMENTS M oachim Karl.Dong Jae Lee,Guoyong Liang.Michael Lim,Padma Mallampally,Hafiz Mirza,Nicole Principal research assistance was provided by Mohamed Chiraz Baly.Bradley Boicourt.Jovan ur vame rs at va published Teresita Ventura.It was edited by Praveen Bhalla. John H.Dunning was the senior economic adviser. WIR06 benefited 2006 Seminar in Geneva in May City,Mexico (n o with Reginald Rumney and the Edge Institute). Inputs were also received from Emin Akcaoglu,Bekele Amare,Frank Bartels,Yannis Berthouzoz Kady.Gachino.Celso Stephen Gelb.Andrea Gold Jost,Georg Kell,Kee Beom Kim,Ari Kokko,Julia Lewis,Mina Mashayekhi.John Mathews.Anthony ved during ation fr s Arruda.Dilek Avku ohn Da niels,Maria de los Angele Pozas Ivanics,Josephat Kweka,Seong-Bong Lee,Robert Lipse ey,Kari Liuhto,Aimable Uwizeye Mapendanc re,Peter i Naidu Estelle Rey.Reginald Rumney.Tagi Sa gafi-Nejad,Mona Salim Bseiso,Yai Sriratana,Marjan Svetlicic Mazen M.Tineh,Len Trevino,Judit Vadasz,Joerg Weber,Henry Yeung and Zbigniew Zimny. nal o xecutives of a number of companies,also contributed toespecially through the provision of ata and othe heegmation e collection o The financial support of the Governments of Norway and Sweden is gratefully acknowledged

iv ACKNOWLEDGEMENTS The World Investment Report 2006 (WIR06) was prepared by a team led by Anne Miroux and comprising Kumi Endo, Torbjörn Fredriksson, Masataka Fujita, Masayo Ishikawa, Kálmán Kalotay, Joachim Karl, Dong Jae Lee, Guoyong Liang, Michael Lim, Padma Mallampally, Hafiz Mirza, Nicole Moussa, Abraham Negash, Hilary Nwokeabia, Shin Ohinata, Jean-François Outreville, Thomas Pollan and James Zhan. Principal research assistance was provided by Mohamed Chiraz Baly, Bradley Boicourt, Jovan Licina, Lizanne Martinez and Tadelle Taye. Anne-Christine Charon, Michael Karschnia, Elodie Laurent and Arthur van de Kamp assisted as interns at various stages. The production of the WIR06 was carried out by Severine Excoffier, Chantal Rakotondrainibe and Katia Vieu. WIR06 was desktop published by Teresita Ventura. It was edited by Praveen Bhalla. John H. Dunning was the senior economic adviser. WIR06 benefited from inputs provided by participants in a Global Seminar in Geneva in May 2006, and three regional seminars on FDI from developing countries held in April 2006: one in Mexico City, Mexico (in cooperation with the Economic Commission for Latin America and the Caribbean and the Government of Mexico), the second in Chiang Mai, Thailand (in cooperation with the ASEAN Secretariat and the Government of Thailand), and the third in Johannesburg, South Africa (in cooperation with Reginald Rumney and the Edge Institute). Inputs were also received from Emin Akçaoglu, Bekele Amare, Frank Bartels, Yannis Berthouzoz, Peter Buckley, Hamed El-Kady, Geoffrey Gachino, Celso Garrido, Stephen Gelb, Andrea Goldstein, Kathryn Gordon, Vishwas Govitrikar, Carrie Hall, Susan Hayter, Daisuke Hiratsuka, Veena Jha, Thomas Jost, Georg Kell, Kee Beom Kim, Ari Kokko, Julia Lewis, Mina Mashayekhi, John Mathews, Anthony Miller, Rekha Misra, Toh Mun Heng, Ramón Padilla, Pavida Pananond, Neil Patterson, Jenny Rydeman, Frans Paul van der Putten, Kee Hwee Wee, Sun Wenjie, Bing Xiang and Tham Siew Yean. Comments were received during various stages of preparation from Carlos Arruda, Dilek Aykut, Rashmi Banga, Diana Barrowclough, Joseph Battat, David Benavides, Peter Brimble, Douglas Brooks, Gregorio Canales Ramirez, John Cassidy, Refik Culpan, John Daniels, Maria de los Angeles Pozas, Ping Deng, Diana Farrell, Axèle Giroud, Ulrich Grosch, Wuping Guo, Guner Gursoy, Sireen Hikmat, Gábor Hunya, Yao-Su Hu, Moses Ikiara, Bharat Joshi, Anna Joubin Bret, Metin Kilci, Annamaria Kokeny Ivanics, Josephat Kweka, Seong-Bong Lee, Robert Lipsey, Kari Liuhto, Aimable Uwizeye Mapendano, Juan Carlos Moreno-Brid, Michael Mortimore, Peter Muchlinski, Sanusha Naidu, Kishore Nair, Rajneesh Narula, Abdoulaye Niang, Peter Nunnenkamp, Gerald Pachoud, Sheila Page, Fernando Porta, Marie￾Estelle Rey, Reginald Rumney, Tagi Sagafi-Nejad, Mona Salim Bseiso, Yai Sriratana, Marjan Svetlicic, Mazen M. Tineh, Len Treviño, Judit Vadasz, Joerg Weber, Henry Yeung and Zbigniew Zimny. Numerous officials of central banks, statistical offices, investment promotion and other government agencies, and officials of international organizations and non-governmental organizations, as well as executives of a number of companies, also contributed to WIR06, especially through the provision of data and other information. The Report also benefited from collaboration with Erasmus University, Rotterdam on the collection of data on, and analysis of, the largest TNCs. The financial support of the Governments of Norway and Sweden is gratefully acknowledged

TABLE OF CONTENTS V TABLE OF CONTENTS Page PREfACE ACKNOWLEDGEMENTS. OVERVIEW.... PART ONE ANOTHER YEAR OF FDI GROWTH CHAPTER I.GLOBAL TRENDS:RISING FDI INFLOWS 3 A.OVERALL TRENDS AND DEVELOPMENTS IN FDI 3 1.endand characteristics vival of FDI in natural resources Trends in international production. 10 Some issues concerning FDI statistics:what is behind the numbers? 10 A new wave of cross-border M&As... b.Cross-border M&As versus greenfield FDI An emerging trend:the rise in FDI by collective investment funds. 4.FDI performance and potential. .21 B.POLICY DEVELOPMENTS ... .23 icy changes 26 b.Systemic issues in international investment rule-making.. .27 C.THE LARGEST TNCS. .30 1 The world's 100 largest TNCs. .30 The top 100 INCs rom developing economies tionality of to 15 4 5 The world's 50 largest financial TNCs 34 D.PROSPECTS.. 36 NOTES .37 CHAPTER II.REGIONAL TRENDS:FDI GROWS IN MOST REGIONS....... 39 INTRODUCTION. .39 A.DEVELOPING COUNTRIES. 40 1.Africa .40 a.Geograp ical trend OwaFD"n2h20godiypmnces 41 44 b.Sectoral trends:FDI up in the primary sector

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 Page PREFACE ................................................................................................................ iii ACKNOWLEDGEMENTS........................................................................................ iv OVERVIEW ........................................................................................................... xvii
     CHAPTER I. GLOBAL TRENDS: RISING FDI INFLOWS ...................................... 3 A. OVERALL TRENDS AND DEVELOPMENTS IN FDI .................................................................. 3 1. Trends, patterns and characteristics ................................................................................................. 3 a. Global FDI ................................................................................................................................. 3 b. Sectoral analysis: revival of FDI in natural resources ........................................................... 7 c. Trends in international production ......................................................................................... 10 2. Some issues concerning FDI statistics: what is behind the numbers? ....................................... 10 3. A new wave of cross-border M&As............................................................................................... 13 a. Recent trends ........................................................................................................................... 13 b. Cross-border M&As versus greenfield FDI .......................................................................... 15 c. An emerging trend: the rise in FDI by collective investment funds .................................. 16 4. FDI performance and potential....................................................................................................... 21 B. POLICY DEVELOPMENTS .............................................................................................................. 23 1. National policy changes .................................................................................................................. 23 2. Recent developments in international investment arrangements ................................................ 26 a. The IIA network continues to expand.................................................................................... 26 b. Systemic issues in international investment rule-making .................................................... 27 C. THE LARGEST TNCS ........................................................................................................................ 30 1. The world’s 100 largest TNCs........................................................................................................ 30 2. The top 100 TNCs from developing economies ........................................................................... 31 3. Transnationality of top TNCs ......................................................................................................... 32 4. TNCs’ most-favoured locations...................................................................................................... 34 5. The world’s 50 largest financial TNCs .......................................................................................... 34 D. PROSPECTS.......................................................................................................................................... 36 NOTES .................................................................................................................................................................. 37 CHAPTER II. REGIONAL TRENDS: FDI GROWS IN MOST REGIONS............. 39 INTRODUCTION ........................................................................................................................................ 39 A. DEVELOPING COUNTRIES............................................................................................................. 40 1. Africa ................................................................................................................................................ 40 a. Geographical trends ................................................................................................................ 41 (i) Growth driven by high commodity prices .................................................................... 41 (ii) Outward FDI: down in 2005 ......................................................................................... 44 b. Sectoral trends: FDI up in the primary sector....................................................................... 45

Page 日eme 46 2.South,East and South-East Asia,and Oceania 50 a.Geographical trends.. 50 (i)In (ii)Outward FDI:overall decline,but flows from China surge. 53 rgl0nafD… Inward FDI:strong growth in services and high-tech industries. g阅.caeidgDcgroiagniercstinnaturalresourcs- 5758 9 3.West Asia 999 (ii)Outward FDI:petrodollars boost investment Siloralrcensnsngnowstoencgy-elhaiedindustries 63 developments 66 4.Latin America and the Caribbean 67 ase to Andean countries 68 (ii)Outward FDI:continued growth.. 70 75 d.Prospects 7 B.SOUTH-EAST EUROPE AND THE COMMONWEALTH OF INDEPENDENT STATES....77 1.Geographical trends... 8 Inward FDI fifth year of growth Outward FDI:strong performance of Russian TNCs continues.. 2. Sectoral trends:manufacturing dominates inflows,natural resources lead outflows... .80 Policy developments.......... Prospects.... 8 1 Geogranhical trends 83 Inward FDI:recovering from the downturn Outward FDI:overall decline tora trends:inflows up in all sectors 330 94 NOTES

vi World Investment Report 2006. FDI from Developing and Transition Economies: Implications for Development c. Policy developments ............................................................................................................... 46 d. Prospects .................................................................................................................................. 49 2. South, East and South-East Asia, and Oceania ............................................................................. 50 a. Geographical trends ................................................................................................................ 50 (i) Inward FDI: continues to soar ...................................................................................... 50 (a) South, East and South-East Asia ........................................................................... 50 (b) Oceania .................................................................................................................... 53 (ii) Outward FDI: overall decline, but flows from China surge ........................................ 53 (a) South, East and South-East Asia ............................................................................ 54 (b) Intraregional FDI .................................................................................................... 54 b. Sectoral trends ......................................................................................................................... 55 (i) Inward FDI: strong growth in services and high-tech industries................................ 55 (ii) Outward FDI: growing interest in natural resources.................................................... 57 c. Policy developments ............................................................................................................... 58 d. Prospects .................................................................................................................................. 59 3. West Asia .......................................................................................................................................... 59 a. Geographical trends ................................................................................................................ 59 (i) Inward FDI: unprecedented rise .................................................................................... 59 (ii) Outward FDI: petrodollars boost investment ............................................................... 63 b. Sectoral trends: rising flows to energy-related industries ................................................... 64 c. Policy developments ............................................................................................................... 65 d. Prospects .................................................................................................................................. 66 4. Latin America and the Caribbean ................................................................................................... 67 a. Geographical trends ................................................................................................................ 68 (i) Inward FDI: strong increase to Andean countries........................................................ 68 (ii) Outward FDI: continued growth .................................................................................... 70 b. Sectoral trends: natural resources and manufacturing increasingly targeted ..................... 71 c. Policy developments ............................................................................................................... 75 d. Prospects .................................................................................................................................. 77 B. SOUTH-EAST EUROPE AND THE COMMONWEALTH OF INDEPENDENT STATES .... 77 1. Geographical trends......................................................................................................................... 78 a. Inward FDI: fifth year of growth ........................................................................................... 78 b. Outward FDI: strong performance of Russian TNCs continues.......................................... 79 2. Sectoral trends: manufacturing dominates inflows, natural resources lead outflows................ 80 3. Policy developments........................................................................................................................ 81 4. Prospects........................................................................................................................................... 81 C. DEVELOPED COUNTRIES............................................................................................................... 82 1. Geographical trends......................................................................................................................... 83 a. Inward FDI: recovering from the downturn .......................................................................... 83 b. Outward FDI: overall decline ................................................................................................. 87 2. Sectoral trends: inflows up in all sectors....................................................................................... 90 3. Policy developments........................................................................................................................ 93 4. Prospects........................................................................................................................................... 94 NOTES .................................................................................................................................................................. 95 Page

TABLE OF CONTENTS Vil Page PART TWO FDI FROM DEVELOPING AND TRANSITION ECONOMIES:IMPLICATIONS FOR DEVELOPMENT INTRODUCTION. ,103 CHAPTER III.EMERGING SOURCES OF FDI.. .105 105 1.FDI from developing and transition economies increases .105 Growing overseas investments from developing and transition economies 10 110 Growing importance of Asia as a source of FDI. 112 South-South FDI becomes significant Services dom B.GLOBALAND REGIONAL PLAYERS EMERGING FROM DEVELOPING AND TRANSITION ECONOMIES... .122 of TNCs from developing and transition economies 3 TNCs from Asia 126 7 131 TNCs from Latin America and the Caribbean 132 TNCs from South-East Europe and the CIS. 134 C.SALIENT FEATURES OF THE EMERGING SOURCES OF FDI. .135 NOTES .137 CHAPTER IV.DRIVERS AND DETERMINANTS...... …141 A.CONCEPTUAL FRAMEWORK. .142 estmen .142 from developing and transition economies. 143 3.Application of the theory to TNCs from developing and transition economies........ .146 B.COMPETITIVE ADVANTAGES,DRIVERS AND MOTIVES...... .150 Home country drivers (push factors). (push and pu) 3.Motivations and strategies 157 Namket-secking 158 Rcsource-secking. 161

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  INTRODUCTION................................................................................................... 103 CHAPTER III. EMERGING SOURCES OF FDI................................................... 105 A. DEVELOPING AND TRANSITION ECONOMIES GAIN GROUND AS HOME COUNTRIES ................................................................................................................... 105 1. FDI from developing and transition economies increases ......................................................... 105 a. Growing overseas investments from developing and transition economies .................... 105 b. Cross-border mergers and acquisitions on the rise ............................................................. 108 c. Greenfield and expansion investments ................................................................................ 110 2. Growing importance of Asia as a source of FDI ........................................................................ 112 3. Services dominate .......................................................................................................................... 115 4. South-South FDI becomes significant ......................................................................................... 117 B. GLOBAL AND REGIONAL PLAYERS EMERGING FROM DEVELOPING AND TRANSITION ECONOMIES ................................................................... 122 1. The rise of TNCs from developing and transition economies ................................................... 122 2. TNCs from Africa .......................................................................................................................... 125 3. TNCs from Asia ............................................................................................................................. 126 a. TNCs from East and South-East Asia .................................................................................. 127 b. TNCs from South Asia .......................................................................................................... 130 c. TNCs from West Asia ........................................................................................................... 131 4. TNCs from Latin America and the Caribbean ............................................................................ 132 5. TNCs from South-East Europe and the CIS ................................................................................ 134 C. SALIENT FEATURES OF THE EMERGING SOURCES OF FDI........................................... 135 NOTES ................................................................................................................................................................ 137 CHAPTER IV. DRIVERS AND DETERMINANTS................................................ 141 A. CONCEPTUAL FRAMEWORK...................................................................................................... 142 1. The theory of transnational corporations and foreign direct investment .................................. 142 2. The investment development path and the emergence of TNCs from developing and transition economies.................................................................................. 143 3. Application of the theory to TNCs from developing and transition economies ...................... 146 B. COMPETITIVE ADVANTAGES, DRIVERS AND MOTIVES .................................................. 150 1. Sources of competitive advantages .............................................................................................. 152 2. Drivers to internationalization ...................................................................................................... 155 a. Home country drivers (push factors) ................................................................................... 155 b. Host country drivers (pull factors)....................................................................................... 155 c. Empirical evidence on drivers (push and pull) ................................................................... 156 3. Motivations and strategies ............................................................................................................ 157 a. Market-seeking ........................................................................................................................ 158 b. Efficiency-seeking ................................................................................................................. 158 c. Resource-seeking................................................................................................................... 161 Page

Page d.Created asset-seeking 162 e.Other motives...... 163 C.CONCLUSIONS. .163 NOTES. ,163 CHAPTER V.IMPACT ON HOME AND HOST DEVELOPING ECONOMIES... 169 A. IMPACT ON HOME ECONOMIES 169 1.Outward FDI and the competitiveness of developing-country TNCs.. .170 2 Outward FDI and the competitiveness and restructuring of home-country industries... 177 3 Macroeconomic,trade and employment effects in the home economy 178 I resource flows and balance of payments. 180 180 Employment 181 4. Concluding remarks... 182 B.IMPACT ON HOST ECONOMIES. 183 t on estment Technology and skills 18 trade 89 Other impacts. 195 3.Concluding remarks. 196 C.CONCLUSIONS. 197 NOTES. 19 CHAPTER VI.NATIONAL AND INTERNATIONAL POLICIES 201 A. THE ROLE OF HOME-COUNTRY POLICIES .202 1.Competitiveness policies and outward FDI. 202 2 Policies specific to outward FDI 203 62 ofOtbrCTDoutwardFDl Main instruments used to promote outward FDI Agencies promoting outward FI 21 3.Mitigating potential risks associated with outward FDI 218 B.IMPLICATIONS FOR HOST-COUNTRY POLICIES. ,219 219 eaction s to take eovers by TNCs m de eloping countrie

viii World Investment Report 2006. FDI from Developing and Transition Economies: Implications for Development d. Created asset-seeking ............................................................................................................ 162 e. Other motives......................................................................................................................... 163 C. CONCLUSIONS .................................................................................................................................. 163 NOTES ................................................................................................................................................................ 163 CHAPTER V. IMPACT ON HOME AND HOST DEVELOPING ECONOMIES................................................................................ 169 A. IMPACT ON HOME ECONOMIES ............................................................................................... 169 1. Outward FDI and the competitiveness of developing-country TNCs....................................... 170 2. Outward FDI and the competitiveness and restructuring of home-country industries............ 175 a. Industrial competitiveness .................................................................................................... 175 b. Industrial restructuring.......................................................................................................... 177 3. Macroeconomic, trade and employment effects in the home economy .................................... 178 a. Financial resource flows and balance of payments ............................................................ 179 b. Domestic investment ............................................................................................................. 180 c. International trade ................................................................................................................. 180 d. Employment ........................................................................................................................... 181 4. Concluding remarks....................................................................................................................... 182 B. IMPACT ON HOST ECONOMIES ................................................................................................. 183 1. Assessing host-country impact .................................................................................................... 184 2. Impact on host developing economies ......................................................................................... 184 a. Financial resource flows and investment ............................................................................ 185 b. Technology and skills ........................................................................................................... 188 c. International trade ................................................................................................................. 189 d. Employment ........................................................................................................................... 192 e. Other impacts......................................................................................................................... 195 3. Concluding remarks....................................................................................................................... 196 C. CONCLUSIONS .................................................................................................................................. 197 NOTES ................................................................................................................................................................ 199 CHAPTER VI. NATIONAL AND INTERNATIONAL POLICIES ............................ 201 A. THE ROLE OF HOME-COUNTRY POLICIES ........................................................................... 202 1. Competitiveness policies and outward FDI................................................................................. 202 2. Policies specific to outward FDI .................................................................................................. 203 a. More countries remove barriers to outward FDI ................................................................ 204 b. Active promotion of outward FDI ....................................................................................... 208 (i) Main instruments used to promote outward FDI........................................................ 209 (ii) Agencies promoting outward FDI ............................................................................... 212 c. Home-country measures to promote South-South FDI ...................................................... 217 3. Mitigating potential risks associated with outward FDI ............................................................ 218 B. IMPLICATIONS FOR HOST-COUNTRY POLICIES ................................................................ 219 1. Host-country policies for maximizing the benefits from South-South FDI ............................. 219 2. More FDI sources for IPAs to target ............................................................................................ 220 3. Reactions to takeovers by TNCs from developing countries..................................................... 222 Page

TABLE OF CONTENTS Ix Page C.INTERNATIONALAGREEMENTSAND FDI FROM DEVELOPING AND TRANSITION ECONOMIES 228 38 D.CORPORATE SOCIAL RESPONSIBILITY AND TNCS FROM DEVELOPINGAND TRANSITION ECONOMIES.. ,232 2 aagaSsRegRonacsecsRue 233 235 3. Encouraging good practices. 237 E.CONCLUDING REMARKS. 238 NOTES- 241 CONCLUSIONS 245 REFERENCES 247 SELECTED UNCTAD PUBLICATIONS ON TNCs AND FDI. .333 QUESTIONNAIRE 339 Boxes FDI and round-ripnofvesments stics of e fund real esta The la he transition economies of South-East furope and the cis xpan nghoacpeofieadiasdcveopimgrcouninychomIopsdoigi0o 33 substitution to exportor tionin the automotive industry elopment Programme to boost manufacturing. 8 6 developing countries invest in nAfrica .8 61 64 n national FDI databases inine f FDI by Saudi Arabi 63 have induc il and gas regulations D membe

TABLE OF CONTENTS ix C. INTERNATIONAL AGREEMENTS AND FDI FROM DEVELOPING AND TRANSITION ECONOMIES ................................................................................................. 228 1. The growing role of IIAs .............................................................................................................. 228 2. Regional economic integration agreements and South-South FDI ........................................... 230 D. CORPORATE SOCIAL RESPONSIBILITY AND TNCS FROM DEVELOPING AND TRANSITION ECONOMIES..................................................................... 232 1. Multilaterally agreed CSR principles .......................................................................................... 233 2. Benefits for TNCs from the South from addressing CSR issues............................................... 235 3. Encouraging good practices.......................................................................................................... 237 E. CONCLUDING REMARKS ............................................................................................................. 238 NOTES ................................................................................................................................................................ 241 CONCLUSIONS ......................................................................................................................................... 245 REFERENCES ........................................................................................................................................... 247 SELECTED UNCTAD PUBLICATIONS ON TNCs AND FDI.......................................................... 333 QUESTIONNAIRE .................................................................................................................................... 339
 I.1. FDI and round-tripping of investments.......................................................................................................... 12 I.2. FDI and trans-shipping of investments .......................................................................................................... 12 I.3. UNCTAD expert meeting on FDI statistics: sound data essential for sound policies ............................... 14 I.4. Comparison of the impact of cross-border M&As and greenfield FDI on host countries......................... 17 I.5. Characteristics of private equity and hedge fund investments..................................................................... 18 I.6. Large private equity investments in the German real estate sector ............................................................. 21 I.7. Incoherence between IIAs ............................................................................................................................... 29 I.8. The largest TNCs from the transition economies of South-East Europe and the CIS ............................... 30 I.9. Expanding the coverage of leading developing-country TNCs, from top 50 to top 100: a comparison of samples.................................................................................................................................. 33 II.1. Asian FDI in Africa .......................................................................................................................................... 43 II.2. South Africa: from import substitution to export orientation in the automotive industry ........................ 47 II.3. Egypt: National Suppliers Development Programme to boost manufacturing ........................................... 47 II.4. South Africa: Skills Support Programme ....................................................................................................... 48 II.5. Prospects for FDI rise as TNCs from developing countries invest in oil in Africa ................................... 49 II.6. China’s revised and new data on FDI............................................................................................................. 52 II.7. “China dollars” will stimulate more Chinese outward FDI.......................................................................... 55 II.8. FDI in R&D continues to rise in developing Asia ........................................................................................ 56 II.9. Rising FDI in Asian real estate ....................................................................................................................... 57 II.10. Recent privatizations involving FDI in West Asia ........................................................................................ 61 II.11. Intraregional FDI flows on the rise in West Asia .......................................................................................... 62 II.12. How are West Asian petrodollars recycled in FDI? ...................................................................................... 64 II.13. Efforts in West Asia to strengthen national FDI databases in line with the ESCWA/UNCTAD joint project ...................................................................................................... 66 II.14. Accession to the WTO and liberalization of FDI by Saudi Arabia ............................................................. 67 II.15. Latin American firms step into the breach ..................................................................................................... 73 II.16. High oil prices have induced changes in oil and gas regulations ................................................................ 76 II.17. Russian mobile phone operators in the CIS ................................................................................................... 82 II.18. Will Japanese FDI stock really be doubled by 2006? ................................................................................... 86 II.19. The effects of the Homeland Investment Act on United States outward FDI............................................. 89 II.20. New EU member States continue to attract international car manufacturers ............................................. 91 II.21. FDI in banking in the EU-15: trends, determinants and barriers to integration ......................................... 92 III.1. Statistics on FDI from developing and transition economies – a cautionary note ................................... 106 Page

Page FEarrcndsinfDlfromdevclopingcountrics The Orascom Group ndia gobal player in equipmen The t s of dev on e y ED my TNCs 64:59 How doe out ard FDI promote the market expansion of developing-country TNCs V2. of devlopng-o TNC ience of lesothe on inte ital flow ard FDIp asis on africa Souh-u 213 -some examples. sia s app ch to outward FDI promotion imvSxcgeptio The ors from developing and transition Inv tment and South- th Fl 2233 ities:the cases of Cemex and Petrobras 236 Box figures 品 NSD .48 M&As and their share in total 120. eEU member States.2005 日ox tables ard FDI stock in holding c 12 1.9.1 developi gceceg8ioaofthe1age50and 3 3004-Jme 0 10mies.1987-200 2004/01-2006/0 194

x World Investment Report 2006. FDI from Developing and Transition Economies: Implications for Development III.2. Early trends in FDI from developing countries........................................................................................... 107 III.3. The Outward FDI Performance Index .......................................................................................................... 114 III.4. The Orascom Group ....................................................................................................................................... 126 III.5. Internationalization of Samsung Electronics............................................................................................... 128 III.6. Overseas investments of Temasek Holdings................................................................................................ 129 III.7. Huawei Technologies: a global player in telecom equipment .................................................................... 130 III.8. India’s Infosys goes global ............................................................................................................................ 131 III.9. Early Argentinean TNCs................................................................................................................................132 IV.1 A tale of two continents: policy choices and industrial development in East and South-East Asia and Latin America .............................................................................................. 145 IV.2 The use of inward and outward FDI to upgrade the competitiveness of countries.................................. 147 IV.3 A panorama of developing-country TNCs ................................................................................................... 151 IV.4 Surveys of developing and transition economy TNCs................................................................................ 153 IV.5 Mixed, complementary and evolutionary FDI motives .............................................................................. 159 V.1. How does outward FDI promote the market expansion of developing-country TNCs? The case of white goods ................................................................................................................................171 V.2. How does outward FDI promote the market expansion of developing-country TNCs? The case of personal computers.................................................................................................................... 172 V.3. Internationalization and profitability: the case of CSCEC......................................................................... 174 V.4. Impact of developing-country FDI in a small LDC: The experience of Lesotho ..................................... 191 VI.1. Controls on international capital flows ........................................................................................................ 204 VI.2. South Africa’s outward FDI policy: emphasis on Africa ............................................................................ 207 VI.3. The gradual liberalization of outward FDI policies in the Republic of Korea ......................................... 208 VI.4. China’s “going global” strategy .................................................................................................................... 210 VI.5. Incentives for outward FDI: Asian examples ............................................................................................. 212 VI.6. Political risk insurance as a tool for promoting South-South investment ................................................ 213 VI.7. Singapore’s outward FDI promotion strategy ............................................................................................. 214 VI.8. Private sector assistance to overseas investment – some examples........................................................... 215 VI.9. Malaysia’s approach to outward FDI promotion ......................................................................................... 216 VI.10. MIGA’s assistance to export credit agencies ............................................................................................... 218 VI.11. FDI and national security exceptions ........................................................................................................... 225 VI.12. Investment disputes involving investors from developing and transition economies ............................. 229 VI.13. The ASEAN Investment Area and South-South FDI .................................................................................. 231 VI.14. Programmes to enhance the social impact of activities: the cases of Cemex and Petrobras................... 233 VI.15. The 10 principles of the United Nation’s Global Compact ........................................................................ 235 VI.16. The Equator Principles .................................................................................................................................. 236
  II.3.1. How does the NSD programme work? ........................................................................................................... 48 II.11.1. Number of intraregional cross-border M&As and their share in total cross-border M&As in West Asia, 1993-2005 ............................................................................................... 62 II.20.1. Map of location of foreign affiliates in the new EU member States, 2005 ................................................. 91
  I.2.1. Inward FDI stock in holding companies of selected countries, 2003 ......................................................... 12 I.2.2. FDI inflows in Luxembourg, distributed between SPE/trans-shipped FDI and non-SPE/non-trans-shipped FDI, 2002-2005 ................................................................................................ 12 I.9.1. Comparison of the country/industry composition of the largest 50 and 100 TNCs from developing economies, 2004 ............................................................................................... 33 II.1.1. FDI in Africa from selected Asian developing economies, 1990-2004....................................................... 43 II.1.2. Cross-border M&As in Africa by firms from selected developing Asian economies, 1987-2005 ........... 43 II.6.1. Data on FDI inflows reported by MOFCOM and by SAFE, 1998-2005 .................................................... 52 II.10.1. Selected privatization projects involving foreign investors in West Asia, 2005-June 2006 ..................... 61 II.18.1. Composition of inward FDI stock in Japan, 2001-2005 ............................................................................... 83 II.19.1. Earnings of foreign affiliates of United States TNCs, 2004/QI-2006/QI ................................................... 84 II.20.1 Macroeconomic and other indicators for selected EU members.................................................................. 92 III.3.1. UNCTAD’s Outward FDI Performance Index, selected economies, 1993-1995 average and 2003-2005 average ................................................................................................ 114 V.1.1. Internationalization of Arçelik and Haier, 2004 .......................................................................................... 171 Page