The initial inflow of capital from FDI is a benefit the subsequent outflow of profits is a cost.

That outflow was 312 billion in 2004.

Source UNCTAD, FDI TNC database (www.unctad.org fdi statistics).

And instead of an outflow, you are now getting a net inflow.

Many countries experience both an outflow and an inflow of health personnel.

A number of them referred to the growing outflow of refugees from Iraq.

FDI and Development Policy Issues Related to the Growth of FDI in Services

An especially serious problem was the outflow of the labour force, particularly of skilled workers.

The global FDI environment

29. Second, both FDI per capita and FDI as a share of GDP are very small, and in many cases FDI is declining in these countries.

Luxembourg and Spain, both major recipients of FDI in 2003, received lower FDI inflows last year.

The Benefits of Chinese FDI

Emerging FDI from developing countries

The global FDI environment 3

Outward FDI from developing countries

Source UNCTAD, FDI TNCs database.

The investment climate and FDI

In the case of ASEAN, intraregional FDI accounts for close to one fifth of the total FDI.

But while the Government has received FDI to support tourism infrastructure in Mount Kumgang, FDI remains insignificant

For example, increases in domestic interest rates may be called upon to stem an unwanted financial outflow.

The impact of FDI on development

The shift of FDI to services

The case of South South FDI

China An emerging FDI outward investor.

(c) Allowing foreign direct investment (FDI).

The volume of FDI was inadequate.

FDI can play an important role.

Recent trends in FDI have highlighted the emergence of FDI from developing countries, particularly but not only from Asia.

Bangladesh, in common with many other LDCs, had liberalized its FDI regime. FDI flows to LDCs remained minimal, however.

UNCTAD should also continue its analysis of FDI processes, especially as regards the impact of FDI on the transition economies.

Estimates of South South FDI can be obtained by using information from home developing countries (on the destination of their outward FDI) or from host developing countries (on the source of their inward FDI).

Foreign direct investment (FDI) and portfolio investments amounted to only 9.9 per cent and 2.1 per cent, respectively, of total net resource flows to the region, while FDI profit remittances slightly exceeded FDI inflows.

Figures for FDI were even more dramatic.

The case of South South FDI 11

Source UNCTAD, FDI TNC database. (www.unctad.org fdistatistics).

Policy trends concerning FDI from developing countries

India's outward FDI A giant awakening? Geneva.

How effective are they in attracting FDI?

5. Analysis of FDI in transition economies

Some experts stressed that policies had been traditionally oriented to attract FDI and were not really defined as promoting outward FDI.

(d) Appropriate harnessing of the potential for foreign direct investment (FDI) and encouraging increased FDI flows to small island developing States

One of the reasons for this is that in most Latin American and Caribbean countries, FDI policies focus on attracting large quantities of FDI and do not pay much attention to the nature of FDI.

It created a new website dedicated to FDI and TNC statistics (www.unctad.org fdistatistics), a site of comprehensive and integrated data sets on FDI and operations of TNCs, drawn from UNCTAD's database on FDI and TNCs.

The report also made pertinent observations on the effects of FDI, or a lack of FDI, on economic growth and poverty reduction.

The note examines changes in foreign direct investment (FDI) patterns, and in particular the role of developing countries in world FDI outflows.