Foreign Direct Investment has become the major economic driver of globalization, accounting for possession of all cross-border investments. FDIs do not only provide foreign capital and funds, but they also provide domestic countries with an exchange of skill sets, information and expertise. Inflow of investments into a country creates job opportunities and improves productivity levels. FDI ranking the level of accumulated FDI in a country. FDI performance index ranks countries by the received FDI relative to their economics size. It is the ratio of a country’s share in global FDI flows relative to its share in global GDP. The most profound effect of FDI has been seen in developing countries. The brightest examples are China and Hong Kong. FDI inflows to Asia grew at an average annual rate of just over US$ 75 billion and double that between 1997 and 2004, according to UNCTAD data. FDI rankingdemonstrates that China has been number 1 in 2006-2008. Its rapid development from poor country to highly technological and rapidly growing economy is the result of big inflow of foreign investment. According to FDI ranking, another big economy that has a high potential to attract foreign direct investment is USA. Nevertheless, there are some factors that have direct effect on investments, however, they are difficult to measure. These factors include political stability, social issues and institutional operation. FDI ranking is an important tool that is often used in measuring the entire economic performance of counties. (Liuba)
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