Foreign Direct Investment in Retreat: Policies to Turn the Tide

Foreign direct investment (FDI)—an important source of external financing for emerging market and developing economies (EMDEs)—has weakened since the global financial crisis, heightening the challenges of filling vast infrastructure gaps, reducing poverty, creating new jobs, and addressing climate change. This study provides a broad perspective on the evolution of FDI inflows to EMDEs since 2000, including patterns across regions and changes in sectoral composition.

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Shifting Shores: Foreign Direct Investment (FDI) Relocations and Political Risk | World Bank Expert Answers

Foreign Direct Investment (FDI) has powered prosperity in development for decades. But in recent years FDI flows have been impacted by overlapping crises, including the pandemic, increasing geopolitical fragmentation, and slower world economic growth. This has led to new patterns in FDI, analyzed in a recent MIGA report “Shifting Shores: FDI Relocations and Political Risk.”

Moritz Nebe, Sector Manager at the Multilateral Investment Guarantee Agency which houses the World Bank Group Guarantee Platform, joins Expert Answers to unpack what these changes mean for investors and the developing world.

Money sent home by workers now largest source of external financing in low- and middle-income countries (excluding China)

Article by Donna Barne & Florina Pirlea| www.worldbank.org.

The money workers send home to their families from abroad has become a critical part of many economies around the world. Based on the most recent data, remittances, as this money is called, will only grow in importance. Officially recorded remittances amounted to a record $529 billion in 2018, and are on track to reach $550 billion in 2019.

This money is flowing at about the same levels as foreign direct investment (FDI), but if China is excluded, they are the largest source of foreign exchange earnings in low- and middle-income countries, according to Migration and Remittances Brief 31, published by the World Bank Group and KNOMAD, the Global Knowledge Partnership on Migration and Development. In other words, if China is excluded from the analysis, remittances have already overtaken FDI as the biggest source of external financing.

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eC2: Global Investment Competitiveness Survey

Deadline: 07-Sep-2016 at 11:59:59 PM (Eastern Time – Washington D.C.)

The Global Investment Competitiveness Survey aims to capture business perceptions on banknotes_640the role of investment climate factors in guiding foreign direct investment (FDI) decisions. The survey aims to analyze the investment-decision process of FDI firms across all the steps of their investment cycle (e.g., investment plans, entry, expansion, and exit). The survey also measures the importance of investment climate variables in influencing FDI decisions (e.g., investment incentives, promotion, regulations, administrative processes, etc.). We have developed a preliminary draft survey comprises around 30 questions that should take around 20-30 minutes to complete.

The survey firm will be responsible for pilot testing and implementing the survey. In person (face to face) or telephone follow up interviews of selected respondents and write up of a small set of case studies will also be required to complete the assignment.

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