fdi in respect of the world

8/14/2019 FDI in respect of the World

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Introduction

Foreign direct investment (FDI) is defined as a long-term investment by aforeign direct investor in an enterprise resident in an economy other thanthat in which the foreign direct investor is based. Foreign direct

investment (FDI) is aiso defined as "investment made to acquire lastinginterest in enterprises operating outside of the economy of the investor.The FDI relationship consists of a parent enterprise and a foreign affiliatewhich together form a Multinational corporation (MNC). In order to qualifyas FDI the investment must afford the parent enterprise control over itsforeign affiliate. The UN defines control in this case as owning 10% ormore of the ordinary shares or voting power of an incorporated firm or itsequivalent for an unincorporated firm; lower ownership shares are knownas portfolio investment.

Foreign Direct Investment (FDI) flows have increased dramatically in lastfew decades. As developing countries, particularly in Asia, removerestrictions and implement policies to attract FDI inflows, trade andinvestment have become increasingly intertwined. As such, there havebeen growing calls for a multilateral framework of foreign investment rulesto be negotiated under the auspices of the World Trade Organization(WTO). This paper reviews developments in FDI flows and their impacts indeveloping Asia, and the importance of the policy context in which thoseflows occur. It discusses advantages and disadvantages of including FDI inWTO negotiations, and related policy options for developing Asianeconomies.

Objectives:1. To identify the actual status of FDI.2. What kind of changes has brought by the FDI in the world economy.3. In what condition FDI may be beneficial for a country.4. What type of FDI can bring what type of benefits.5. Which country has created the highest potentiality in FDI, which is the

leading country in respect of this.6. Which country has the highest FDI in Bangladesh.

HistoryIn the years after the Second World War global FDI was dominated by theUnited States, as much of the world recovered from the destructionbrought by the conflict. The US accounted for around three-quarters ofnew FDI (including reinvested profits) between 1945 and 1960. Since thattime FDI has spread to become a truly global phenomenon. FDI has grown

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in importance in the global economy with FDI stocks now constituting over20 percent of global GDP.

In the US, in the late 1960s and early 1970s, foreign direct investmentbecame increasingly politicized. Organized labor, convinced that foreigninvestment exported jobs, undertook a major campaign to reform the tax

provisions which affected foreign direct investment. The Foreign Trade andInvestment Act of 1973 (or the Burke-Hartke Bill) would have eliminatedboth the tax credit and tax deferral. The Nixon Administration, influentialmembers of Congress of both parties, and well-financed lobbyingorganizations came to the defense of the multinational. The massivecounterattack of the multinational corporations and their allies defeatedthis first major challenge to their interests.

Different Types of FDI

By Direction

Inward:

Inward foreign direct investment is a particular form of inward investment

when foreign capital is invested in local resources.

InwardFDI is encouraged by:

Tax breaks, subsidies, low interest loans, grants, lifting of certainrestrictions

The thought is that the long term gain is worth more than the shortterm loss of income

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InwardFDI is restricted by:

Ownership restraints or limits Differential performance requirements

Outward:

Outward foreign direct investment, sometimes called "direct investmentabroad", is when local capital is invested in foreign resources. Yet it canalso be used to invest in imports and exports from a foreign commoditycountry.

OutwardFDI is encouraged by:

Government-backed insurance to cover risk

OutwardFDI is restricted by:

Tax incentives or disincentives on firms that invest outside of thehome country or on repatriated profits

Subsidies for local businesses Leftist government policies that support the nationalization of

industries (or at least a modicum of government control) Self-interested lobby groups and societal sectors who are supported

by inward FDI or state investment, for example labour markets andagriculture.

Security industries are often kept safe from outwards FDI to ensurelocalised state control of the military industrial complex

By Target

Greenfield investment

Direct investment in new facilities or the expansion of existing facilities.Greenfield investments are the primary target of a host nationspromotional efforts because they create new production capacity and jobs,

transfer technology and know-how, and can lead to linkages to the globalmarketplace. The Organization for International Investment cites thebenefits of greenfield investment (or insourcing) for regional and nationaleconomies to include increased employment (often at higher wages thandomestic firms); investments in research and development; and additionalcapital investments. Criticism of the efficiencies obtained from greenfieldinvestments include the loss of market share for competing domesticfirms. Another criticism of greenfield investment is that profits are

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perceived to bypass local economies, and instead flow back entirely to themultinational's home economy. Critics contrast this to local industrieswhose profits are seen to flow back entirely into the domestic economy.

Mergers and Acquisitions

Transfers of existing assets from local firms to foreign firms takes place;the primary type of FDI. Cross-border mergers occur when the assets andoperation of firms from different countries are combined to establish a newlegal entity. Cross-border acquisitions occur when the control of assets andoperations is transferred from a local to a foreign company, with the localcompany becoming an affiliate of the foreign company. Unlike greenfieldinvestment, acquisitions provide no long term benefits to the localeconomy-- even in most deals the owners of the local firm are paid instock from the acquiring firm, meaning that the money from the sale could

never reach the local economy. Nevertheless, mergers and acquisitions area significant form of FDI and until around 1997, accounted for nearly 90%of the FDI flow into the United States. Mergers are the most common wayfor multinationals to do FDI.

Horizontal FDI

Horizontal FDI occurs when the multinational undertakes the sameproduction to activities in multiple countries.

Vertical FDI

Backward Vertical FDI

Where an industry abroad provides inputs for a firm's domesticproductions.

Forward Vertical FDI

Where an industry abroad sells the outputs of a firm's domesticproduction.

By Motive

FDI can also be categorized based on the motive behind the investmentfrom the perspective of the investing firm:

Resource-Seeking

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Investments which seek to acquire factors of production that are moreefficient than those obtainable in the home economy of the firm. In somecases, these resources may not be available in the home economy at all(e.g. cheap labor and natural resources). This typifies FDI into developingcountries, for example seeking natural resources in the Middle East andAfrica, or cheap labor in Southeast Asia and Eastern Europe.

Market-Seeking

Investments which aim at either penetrating new markets or maintainingexisting ones. FDI of this kind may also be employed as defensivestrategy; it is argued that businesses are more likely to be pushed towardsthis type of investment out of fear of losing a market rather thandiscovering a new one. This type of FDI can be characterized by theforeign Mergers and Acquisitions in the 1980s by Accounting, Advertisingand Law firms.

Efficiency-Seeking

Investments which firms hope will increase their efficiency by exploitingthe benefits ofeconomies of scale and scope, and also those of commonownership. It is suggested that this type of FDI comes after either resourceor market seeking investments have been realized, with the expectationthat it further increases the profitability of the firm.

Strategic-Asset-Seeking

A tactical investment to prevent the gain of resource to a competitor.Easily compared to that of the oil producers, whom may not need the oil atpresent, but look to prevent their competitors from having it.

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Review of Literature

According to the Comment on Bangladesh's competitive position as foundin "The 15th SurveyofInvestment-Related Cost Comparison in Major Citiesand Regions in Asia", "the investment cost in Bangladesh has becomecheaper compare to the last year and Bangladesh succeeded to developherself as more competitive than other countries which are potential fromthe investment point of view to foreign investors".

China's combined direct investments abroad amounted to $92.05 billion by theend of 2007, said a senior official of the China Council for the Promotion ofInternational Trade (CCPIT) on Wednesday.

Zhang Wei, vice chairman of the CCPIT, said in Beijing that since the governmentinitiated the "going global" strategy for domestic companies in 1998, Chinesecompanies' enthusiasm for investing overseas has been on the rise, big privately-owned enterprises in particular. The CCPIT, and also the China Chamber ofInternational Commerce, have formulated programs in 2006 to facilitate domesticcompanies' global strategy to help them make better use of the domestic andinternational markets, he added. The 2nd Chinese Enterprise OutboundInvestment Conference, organized by the CCPIT and the Ministry of Commerce,would be held from April 22-23 in Beijing, according to the CCPIT. By the end of2006, more than 5,000 Chinese investment entities had established almost10,000 companies overseas in 172 countries and regions, with the combined

outbound investment reached $90.63 billion.

The Institute of International Finance found that FDI into emerging marketsincreased from $119bn in 2006 to an estimated $256bn last year, with afurther increase to $286bn predicted for this year. The research said: Thestrength of FDI comes despite an evident rise in global corporate cautionin recent months. Overall capital flows into emerging markets reached anestimated $782.4bn in 2007, increasing from $568.2bn in 2006 and$521bn in 2005. The trend is set to continue, with strong FDI flows

projected globally; China is expected to lead the way at $88bn and LatinAmerica is likely to attract $55bn.

Consulting group OCO Global found that China to be retaining its 2006ranking as the top global destination for multinational investment,attracting 1171 projects.

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The burgeoning literature on outward foreign direct investment fromemerging markets has largely focused on analysing the motives ofinvestors as reported by parent companies. The analysis is based on asub-set of firms drawn from the overall sample of 1,216 foreign-ownedfirms participating in the UNIDO Africa Foreign Investor Survey, carried outin 2005. The sample of investments originating from China, India and

South Africa is analysed in terms of firm characteristics, past and forecastperformance in SSA over three years and managements perception ofongoing business conditions. Comparisons are made with foreign investorsfrom the North. The paper concludes that while investors in SSA from thethree countries are primarily using their investment to target specificmarkets, they are largely operating in different sub-sectors. While thereappear to be specific features that firms from a given country of originshare, there are no obvious operating-level features they all share apartfrom market seeking.

China's dramatic success in attracting foreign direct investment (FDI) hasraised concerns that it has success diverted FDI from other countries inAsia. The paper develops a new methodology to estimate crowding out,and we use it to investigate the impact of China's emergence on FDI flowsto Asia using data from 14 Asian economies from 1984 to 2002. Theresults suggest that China did not have much impact on FDI to othercountries. In particular, low-income economies, which compete with Chinafor low-wage investment and countries with low levels of education orscientific development, do not seem to have been especially affected.

Does environmental regulation impair international competitiveness ofpollution-intensive industries to the extent that they relocate to countrieswith less stringent regulation, turning those into "Pollution havens"? Thishypothesis is tested using panel data on outward Foreign DirectInvestment (FDI) flows of various industries in the German manufacturingsector and account for several econometric issues that have been ignoredin previous studies. Most importantly, externalities associated with FDIagglomeration can bias estimates away from finding pollution havens ifomitted from the analysis. The stock of FDI as a proxy for agglomerationand employ econometric techniques is included that control for itsendogenously.

Foreign Direct Investment (FDI) flows have increased dramatically in lastfew decades. As developing countries, particularly in Asia, removerestrictions and implement policies to attract FDI inflows, trade andinvestment have become increasingly intertwined. As such, there havebeen growing calls for a multilateral framework of foreign investment rules

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to be negotiated under the auspices of the World Trade Organization(WTO). This paper reviews developments in FDI flows and their impacts indeveloping Asia, and the importance of the policy context in which thoseflows occur. It discusses advantages and disadvantages of including FDI inWTO negotiations, and related policy options for developing Asianeconomies.

There is widespread concern in many parts of Asia and Latin America thatrising foreign investment to the People's Republic of China (PRC) is at theexpense of investment and jobs in these economies. It examines this fearempirically using a regression model to explain foreign investment inthese economies. Contrary to popular opinion, foreign investment to PRCappears to stimulate investment to rather than divert investment fromother countries in Asia. However, it is not the most important factor atwork. The size of a country's domestic market and several policy variables

are the key factors. In Latin America, with the possible exception ofMexico, foreign investment to PRC has an insignificant impact oninvestment to other countries.

Mumbai, Apr 25There will be modest and temporary decline in globalforeign direct investment (FDI) inflows in 2008, on the back of slowingmergers and acquisitions (M&As) activity, before a resumption of steadygrowth in 2009-11. A report by the Economic Intelligence Unit (EUI) titledWorld Investment Prospects to 2011 :FDI and the challenge of politicalrisk released on Thursday, said the recent global financial turmoil wouldhave only a limited impact on FDI flows, primarily through a dampeningimpact on cross-border M&As. EIA has done the analysis of detailed five-year forecasts for 82 leading FDI recipient countries of investment andmarket trends.

Methodology

Considering the extensiveness, efficacy and reliability I depended ondifferent web sites related to FDI to gather the information and includedthese in this term paper. At first I got some instruction about FDI like whatis it? Its types with example, Why it is important? Bangladesh condition in

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respect of this? What is its effect? Etc. from my honorable class teacher.He also suggest me to go through the text book and some other relatedbooks to get more information about it. According to his instruction I wentthrough the books and related websites to get a better conception aboutFDI and then I accumulate all of my collected knowledge and personalconception in this term paper to complete it.

FDI Status in Bangladesh

FDI Inflow Survey is a statistical approach of collecting primary data on theactual FDI inflow into a country in a given period. In Bangladesh, thisapproach was introduced by BOI in February 2003. It was the firsteverattempt to gather credible data on actual FDI inflow on the basis ofdefinition given by UNCTAD. The successful completion of the first FDIInflow survey and its wider recognition encouraged BOI to undertake suchsurveys on regular basis. This FDI Inflow Survey is the fourth of its seriesand presents actual FDI inflow data for the period January to December

2004.

Sectoral Distribution of FDIIn a broader sectoral distribution of FDI in 2004, service sector (66.76%)emerged as the leading sectorfollowed by manufacturing (31.30%) and others. Exhibit 2 presents thebroad sectoral distribution:a. Telecom, Energy and Power: Substantial inflow in the telecom andenergy subsectors is the key reason behind rise of service sector in FDI.

Exhibit 2: Sectoral Distribution of FDI in 2004Telecom: 36%Manufacturing: 31%Energy & Power: 20%Others: 13%

Telecom represents 36% of total FDI, while energy and power accounts forabout 20%. As a result of opening the PSTN telephony to the privatesector, a sustainable robust growth in the telecom sector is envisaged in

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the coming years. Besides, existing cellular operators are also expected tocontinue their investment program to firm up healthier market position.The projected growth of the industry in the coming years would requireestablishment of sufficient utility infrastructure like energy and power tosupport the momentum. In view of this situation, more FDI and also localinvestment in these sub-sectors are projected in the medium and long

term.

FDI Inflow by Sources The sources of FDI in Bangladesh during 2004 are quite diversifiedinvolving 30 countries from amongst all region of the world. Exhibit 3 andTable 4 present detail of FDI sources and their ranking.a. Developed economies: Almost two-third (63.30%) of FDI in 2004 wasoriginated from the developed economies, while the share of developingcountries is 36.70%Western Europe is the largest regional source (45.22%) of FDI inBangladesh during 2004, which could be sub-divided into two - European

Union (18.00%) and other Western Europe (27.22%).North America's investment amounts to 13.33% and other developedeconomies' share is 4.75%.b. Developing economies: The developing region consists of Asia (33.61%)- the second largestSource - that includes South, East and South East Asia (31.47%) and WestAsia (2.14%). Africa also contributes 3.02% of FDI in 2004.c. Source versus sectors: In general, investments from the developingcountries are manufacturing oriented. On the other hand, developedcountries' investments are mostly service-oriented.

Distribution of FDI Inflow by SourcesEuropean Union: 18.00%Other Western Europe: 27.22%South, East and South-East Asia: 31.47%North America: 13.33%Japan: 4.72%West Asia: 2.14%Africa: 3.02%

Top-10 FDI source countries are (1) Norway, (2) UK, (3) USA, (4)South Korea, (5) Malaysia, (6) Hong Kong, (7) Taiwan, (8) Japan (9)Canada and (10) Egypt.

Mid-Term Strategic Plan 2003-06: FDI Target and AchievementUnder the Mid-term Strategic Plan (MSP) 2003-06, FDI target for the year2006 was set at US$ 1.00 (one) billion. The target is based on the basis ofannual growth of 35% during the subject period. Following Exhibit 4

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illustrates the year-wise FDI target and its current achievement status inbrief:Note 1: FDI Target was set since 2003.Note 2: Actual FDI Figures for 2005 and 2006 would be available afterconducting surveys in the following years.Source: Mid-term Strategic Promotional Plan 2003-06 and Results of FDI

Inflow Survey by BOI and BEPZA.Given the present trend of industrial and manufacturing growth andmacro-economic situation, BOI is expecting to achieve the 2005 and 2006targets of FDI.

List of countries by received FDI

This is a list of countries by FDI (Foreign direct investment) in 2006mostly based on CIA Factbook accessed in January 2008.

Rank by sovereignstate

Country/Region FDI (in US$)

1. United States 1,818,000,000,0002. United Kingdom 1,135,000,000,000

3. Hong Kong 769,100,000,0004. Germany 763,900,000,0005. China 699,500,000,000

6. France 697,400,000,0007. Belgium 633,500,000,0008. Netherlands 450,900,000,0009. Spain 439,400,000,00010. Canada 398,400,000,00011. Italy 294,800,000,00012. Russia 271,600,000,00013. Australia 246,200,000,00014. Mexico 236,200,000,00015. Switzerland 232,500,000,00016. Brazil 214,300,000,000

17. Sweden 199,600,000,00018. Singapore 189,700,000,00019. Ireland 179,000,000,00020. Denmark 138,400,000,00021. South Korea 118,000,000,00022. Poland 104,200,000,00023. Hungary 96,610,000,00024. Japan 88,620,000,000

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25. Portugal 85,520,000,00026. Turkey 84,530,000,00027. Chile 84,070,000,00028. Malaysia 77,700,000,00029. Czech Republic 77,460,000,00030. South Africa 77,350,000,00031. Thailand 69,060,000,00032. India 67,720,000,00033. Austria 66,320,000,00034. Finland 64,180,000,00035. New Zealand 63,120,000,00036. Argentina 60,040,000,00037. Norway 56,700,000,00038. Israel 47,390,000,00039. Venezuela 45,400,000,00040. Colombia 45,010,000,000

41. Taiwan 44,880,000,00042. UAE 42,580,000,00043. Greece 41,320,000,00044. Romania 40,690,000,00045. Egypt 37,660,000,00046. Nigeria 31,660,000,00047. Kazakhstan 29,820,000,00048. Vietnam 26,270,000,00049. Morocco 23,500,000,00050. Indonesia 21,910,000,00051. Tunisia 21,220,000,00052. Ukraine 21,190,000,00053. Bulgaria 20,860,000,00054. Peru 19,360,000,00055. Slovakia 19,080,000,00056. Croatia 18,330,000,00057. Angola 17,600,000,00058. Philippines 16,370,000,00059. Estonia 16,320,000,00060. Ecuador 14,670,000,00061. Pakistan 14,670,000,000

62. Algeria 14,370,000,00063. Azerbaijan 12,580,000,00064. Bahrain 11,550,000,00065. Cuba 11,240,000,00066. Lithuania 10,940,000,00067. Dominican Republic 10,670,000,00068. Qatar 10,630,000,00069. Jordan 8,154,000,000

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70. Slovenia 7,459,000,00071. Costa Rica 6,897,000,00072. Latvia 6,418,000,00073. El Salvador 4,377,000,00074. Iran 4,345,000,00075. Libya 4,305,000,00076. Bangladesh 4,208,000,00077. Kenya 1,169,000,00078. Bosnia and

Herzegovina833,482,000

79. Kuwait 818,000,000

International investment position

A country's international investment position (IIP) is a financialstatement setting out the value and composition of that country's externalfinancial assets and liabilities. The IIP is one component of the capitalaccount of a country's balance of payments, containing for example stockof companies, real estate, financial instruments, and so on. Bycomparison, imports and exports of goods and services are part of thecurrent account.

The difference between a country's external financial assets and liabilitiesis the net international investment position (NIIP).

International Investment Position = domestically owned foreign assets -foreign owneddomestic assets.

Banglades:

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India:

China

ASIAN FOREIGN DIRECT INVESTMENT IN AFRICA:

Foreign direct investment (FDI) in Africa by developing Asian economies isgrowing and has the potential to reach much higher levels, a joint reportby UNCTAD and the United Nations Development Programme (UNDP) says.Most such investment is now targeted at African natural resources, but the

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report contends that if appropriate policies are adopted more may bechannelled into industry and manufacturing.

The report, Asian Foreign Direct Investment in Africa: Towards aNew Era of Cooperation among Developing Countries, notes thatAfrica-bound FDI is still a small percentage of the rapidly climbing foreign

investments being made by Asian transnational corporations (TNCs). (Eastand South-East Asia are now home to almost four-fifths of the top 100 TNCs from developing countries.). Outward Asian FDI has expandedrapidly, reaching a record US$90 billion in 2006. During 2002-2004, FDIoutflows from developing Asia averaged US$46 billion, of which flows toAfrica made up only US$1.2 billion annually. Most of the total goes to otherAsian economies; that directed from Asia to Africa nonetheless makes upthe largest inter-regional FDI flow in the developing world.

There is rising interest in Africa as an investment location, in part becauseof the complementary nature of economic development between Asian

and African countries, the report says. Traditionally, FDI flows fromdeveloping Asia to Africa were mainly from the Asian newly industrializingeconomies (Hong Kong SAR, Republic of Korea, Singapore, and TaiwanProvince of China). But recently, China and India have emerged assignificant sources. Singapore, India and Malaysia currently are the topAsian originators of FDI in Africa, with investment stocks of US$3.5 billion(cumulative approved flows from 1996 to 2004), US$2 billion and US$1.9billion through 2004, respectively, followed by China, the Republic ofKorea, and Taiwan Province of China (table).

Over the past few years, China has become one of Africas importantpartners for trade and economic cooperation. Trade (exports and imports)between Africa and China increased from US$11 billion in 2000 to US$56billion in 2006. Chinas FDI stock in Africa had reached US$1.6 billion by2005 (table), with Chinese companies present in 48 African countries,although Africa still accounts for only 3% of Chinas outward FDI. A fewAfrican countries have attracted the bulk of Chinas FDI in Africa: Sudan isthe largest recipient (and the 9th largest recipient of Chinese FDIworldwide), followed by Algeria (18th) and Zambia (19th).

Africa has the potential to become an important investment location forAsian companies in particular. The rapid economic growth in Asia can beexpected to lead to increased Asian investments in Africa, in both naturalresources and manufacturing. In particular, the rapid industrial upgradingtaking place in Asia provides ample opportunities for Africa to attractefficiency-seeking and export-oriented FDI from Asian economies.

To reap the potential of expanding Asian interest, African Governmentscould draw on important lessons from many Asian countries now showinghigh economic growth and upgraded industrial activity, the report

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contends. Those countries made strategic investments in education andinfrastructure that were crucial not only for promoting economicdevelopment in general but for attracting and benefiting from efficiency-seeking and export-oriented FDI.

African countries need to make substantial efforts to enhance their

productive capacities in a variety of industries, the report says. Sector-neutral and passive policies should be replaced by flexible, well-targetedefforts to spur FDI that leads to broad-based growth. An importantobjective for African countries where FDI is concentrated in extractiveindustries should be to add value to existing investments and to promoteinvestment in other sectors. African governments need to pay attention toattracting manufacturing projects and to building the domestic capabilitiesnecessary for such activities. They also should strive to enhance"backward" linkages between foreign affiliates and domestic firms,especially small and medium-sized enterprises.

Asian Foreign Direct Investment in Africa: Towards a New Era ofCooperation among Developing Countries was financed by a contributionby the Government of Japan to UNDP through the Japan Human ResourcesDevelopment Fund for South-South Cooperation.

Conclusion

Foreign direct investment (FDI) is an investment involving a long-termrelationship and reflecting a lasting interest and control by a resident

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entity in one economy (foreign direct investor or parent enterprise) in anenterprise resident in an economy other than that of the foreign directinvestor (FDI enterprise or affiliate enterprise or foreign affiliate). FDIimplies that the investor exerts a significant degree of influence on themanagement of the enterprise resident in the other economy. Suchinvestment involves both the initial transaction between the two entities

and all subsequent transactions between them and among foreignaffiliates, both incorporated and unincorporated. FDI may be undertakenby individuals as well as business entities.

Foreign direct investment (FDI) continues to gain in importance as a formof international economic transactions and as an instrument ofinternational economic integration. The rate of growth of worldwide FDIinflows in the past two decades has substantially exceeded that ofworldwide gross domestic product (GDP), exports and domesticinvestment. Transnational corporations (TNCs) account for an increasingshare and, in some cases, a substantial part of the assets, employment,

domestic capital formation, research and development, sales and trade ofmany countries and have become one of the driving forces of integrationin the world economy.

References

Bangladesh Bureau of Statistics (2002) Estimates of Investment: Methods

and Data Sources, Dhaka: Bangladesh Bureau of Statistics.

Dunning, J. H. (1993). Multinational enterprises and the global economy.Wokingham, England ; Reading, Mass, Addison-Wesley.

Dunning, J. H., B. Kogut and M. Blomstrom (1990). Globalization of firmsand the competitiveness of nations. Lund, Institute of EconomicResearch Lund University ; Bromley : Chartwell-Bratt c1990.

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Foreign Direct Investment, United Nations Conference on Trade andDevolpment, www.unctad.org

Gilpin, R. (1986) U.S. Power and the Multinational Corporation- The PoliticalEconomy of Foreign Direct Investment. New York: Basica Books, Inc.,

Publishers.

Knickerbocker identified this phenomenon in his follow-my-leaderhypothesis in: Knickerbocker, F. T. (1973). Oligopolistic reaction andmultinational enterprise. Boston(Mass.), Division of Research GraduateSchool of Business Administration Harvard University.

International Monetary Fund (1993) Balance of Payments Manual, 5thedition, Washington, D.C.: IMF.

OECD (1996) Detailed Benchmark Definition of Foreign Direct Investment,3rd edition, Paris: OECD.

The World Bank (1990) Foreign Direct Investment in Bangladesh: Issues ofLong-run Sustainability, Dhaka: The World Bank

UNCTAD (2000) World Investment Directory 2000, Vol. VII-Part I Asia andthe Pacific, New York & Geneva: United Nations.

UNCTAD (2002) World Investment Report 2002: Transnational Corporationsand Export Competitiveness, New York & Geneva: United Nations.

UNCTAD (2003) World Investment Report 2003: FDI Policies forDevelopment: National and International Perspectives, New York &Geneva: United Nations.

UNCTAD (2004) World Investment Report 2004: The Shift towards Services,New York & Geneva: United Nations.

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fdi in respect of the world

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