The growing trend towards South South investment flows would also lead to an increase in South South investment disputes.

The notional pension capital accrues an interest like in the case of the funded pension scheme however, in contrast to the funded pension scheme where the growth of the capital depends on the return on the investment, the growth of the first tier capital depends on the wage growth in the country.

Shortfalls in investment eventually diminish growth and employment opportunities. The hard truth is that the flip side of the consumption led growth model that prevailed prior to the crisis has been deficient investment, particularly on the public sector side.

Fostering investment and growth

Improvements in the business environment as well as increased investment outlays especially in the agri business sector also provided an impetus to growth in non metal exports.

Lebanon and the Syrian Arab Republic experienced investment led growth in 2004.

The growth in domestic investments would not only enhance national wealth, but would also spur the demand for foreign capital and technology in an escalating, mutually reinforcing manner that makes investments demand driven.

Just as investment in physical capital is necessary to generate economic growth, so too investment in human resources must be recognized not merely as a by product of economic growth but as a driving force for development.

Higher rates of economic growth could not be sustained without increased investment, especially in research and development which was crucial to boosting productivity while improving the quality of human capital and technology.

Private investments, including foreign investments, were the key to sustained growth and employment generation.

Evidence shows that investment by TNCs can be an engine of economic growth in host economies.

Investment can sustainably drive growth only up to the point when returns decline dramatically. In the case of public sector investment, that means that the present value of the increment to the future GDP path (using a social discount rate) is greater than the investment itself.

To be sure, capital accumulation is a driving force of economic growth, and catching up with developed country income levels implies that China must increase its capital stock in the long run. But what is at issue is not the size of the capital stock, or even the level of investment the problem is the growth rate of investment, which has been significantly higher than that of GDP for decades.

Even abundant domestic savings in the future would not guarantee higher investment. Firms eagerness to invest depends on how much additional output they can get out of that investment, and recent productivity growth in Latin America as in the US has been disappointing.

The region's growth indicators were positive the increase in direct foreign investment in 2003 had placed ASEAN among the regions of highest growth in that respect, and the increase was expected to be even bigger in 2004.

Portfolio flows and foreign direct investment (FDI) posted the strongest growth, accounting for more than two thirds of total private inflows.

OFDI from Asian developing economies was contributing to growing South South FDI flows and intra regional investment.

Private investments, including foreign investments, were the key to sustained growth and employment generation.

China s investment consists of mainly three broad categories manufacturing industry, infrastructure, and real estate. In late 2008 and 2009, at the height of the global financial crisis, stimulus fueled infrastructure investment sustained output growth.

This indicates that data on the growth rate of fixed asset investment may have exaggerated the pace of capital stock accumulation. Hence, while the Chinese government should be firm on reducing the dependence of growth on investment, it must exercise utmost care when doing so.

Agreement on Investment and Free on Arab Movement of Arab Capital among Arab Economic

Reducing the budget deficit by limiting government spending and combating a culture of tax avoidance will increase total domestic savings available to invest. Convincing foreign direct investors that India is a reliable destination will increase the inflow of long term funds.

The action taken by the public authorities aims to make the private sector the engine of growth for investment, production and employment.

Investment growth that surpasses an economy s absorption capacity will lead to a rapid deterioration in the efficiency of investment, which in turn will harm long term growth prospects. Evidence of this in China today is all too prevalent.

In a situation where you have growth, you put the new money into this.

The contribution of investment expenditure growth to GDP growth was moderate in the latter, but impressive in Lebanon.

Developing countries, once they enter rapid growth mode, generate growth from capital deepening via investment, in a sense making up for past underinvestment. And it is possible for advanced countries to fall behind by under investing, particularly in the public sector, relying instead on less sustainable debt fueled means of generating demand.

This structure contrasts with the pre 1980 business cycle, which rested on wage growth tied to productivity growth and full employment. Wage growth, rather than borrowing and financial booms, fuelled demand growth.

As mentioned above, these flows not only sustain consumption in home countries but also support investment activities and lead to higher output growth.

Domestic investments are a critical resource for economic growth and sustainable development.

To be specific, we need to foster growth, based on increased investment.

In the 1930 s, the economist Alvin Hansen argued that opportunities for new investment in already rich countries were drying up. Investment growth had depended on population growth, technological innovation, and westward expansion.

As a result, every time investment picks up in Latin America, it has to be financed with loans from abroad. Foreign investors are willing to live with the resulting current account deficits, but only up to a point.

When Chinese growth eventually becomes less dependent on investment, growth rates in steel consumption can be expected to fall sharply.

Private investment has its role to play to drive the vigorous growth necessary for economic momentum in the African continent.

And the region s problem is not too much domestic savings, but too little. Latin American countries save 18 of GDP, on average, compared to 30 in fast growing East Asia.

Concurrently, greater investment in infrastructure is also necessary to achieve higher rates of growth.

Many ministers underscored the role of foreign direct investment (FDI) as a source of productive investment and economic growth in developing countries.

Negative OFDI growth was experienced in 1985, 1989, 1998 and 2002.

Creating a positive environment for investment and economic growth

Fixed asset investment is the most important engine of China s growth. As a developing country with annual per capita income of less than 5,000, there is still significant room for China to increase its capital stock.

According to preliminary reports, annual investment growth in 2012 reached roughly 14 significantly higher than the GDP growth rate, which accelerated in the fourth quarter as a result of a strong rebound in investment in real estate and infrastructure. In 2013, it can be expected that, barring major disruptions, strong investment growth will push China s GDP more than 8 higher year on year.

Over the past decade, real estate investment in China has been the single most important contributor to fixed asset investment growth and therefore, to the economy. Indeed, since the late 1990 s, the real estate investment to GDP ratio has been far higher than it was in countries like Japan and Korea during their high growth periods.

The Economic Commission for Latin America and the Caribbean promoted more market oriented regional integration in order to realize greater stability, reduce deficits, encourage export growth and diversification and increase foreign investment.

Chinese growth is widely regarded as furiously export driven, but domestic investment has in fact been the major component. Even at the height of global trade expansion in 2002 2007, exports (in value added terms) accounted for only a little more than one quarter of GDP growth, whereas domestic investment contributed a substantially larger share.