Flow of Foreign Direct Investment has grown faster over recent past. Higher flow of Foreign Direct Investment over the world always reflect a better economic environment in the presence of economic reforms and investment-oriented policies.
Global flow of foreign direct investment reached at a record level of $ 1,306 billions in the year 2006. Increase in FDI was largely fuelled by cross boarder mergers and acquisitions (M&As). FDI in 2006 increased by 38% than the previous year.
Most of the developing and least developed countries worldwide equally participated in the process of direct investment activities.
FDI inflows to Latin American and Caribbean region increased by 11 percent on an average in comparison to previous year.
In African region FDI inflows made a record in the year 2006.
Flow of FDI to South, East and South East Asia and Oceania maintained an upward trend.
Both Turkey and oil rich Gulf States continued to attract maximum FDI inflows.
United States Economy, being world’s largest economy also attracted larger FDI inflows from Euro Zone and Japan.
The following diagram shows the annual Growth of FDI inflows over the world:
Higher inflows of FDI to a country largely generates employment in the nation. FDI in manufacturing sector creates more employment opportunities than to any other sectors.
For the year 2006, countries such as Luxembourg, Hong Kong China, Suriname, Iceland and Singapore ranked in the top of Inward performance Index Ranking of the UNCTAD.
Over recent years most of the countries over the world have made their business environment investment friendly for absorbing global opportunities by attracting more investable funds to the country.
