International direct investment is increasingly recognised as an engine of economic growth and a powerful force for global integration. The OECD has long been active in analysing the implications of such forces and in influencing the design of appropriate policies for a global economy. This report summarises the findings of recent OECD work on the role of international investment in globalisation and economic development.

Foreign direct investment is defined as capital invested for the purpose of acquiring a lasting interest in an enterprise and of exerting a degree of influence on that enterprise’s operations. Direct investment differs from portfolio investment in that it involves control of the asset in question, while portfolio investors are passive investors, motivated only by the rate of return on the asset. While this distinction is useful for analytical purposes, OECD member countries are increasingly adopting a broader view of FDI which includes many investments otherwise ...

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Paper provided by OECD Directorate for Financial and Enterprise Affairs in its series OECD Working Papers on International Investment with number 1998/1.

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Date of creation: 1998
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Handle: RePEc:oec:dafaaa:1998/1-en

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1. Henry Loewendahl & Ebru Ertugal-Loewendahl, 2001. "Turkey’s Performance in Attracting Foreign Direct Investment: Implications of EU Enlargement," Economics Working Papers 008, European Network of Economic Policy Research Institutes. [Downloadable!]
2. Marcela Anzola, 2006. "Países en desarrollo y globalización: ¿Gandores o Perdedores?," BORRADORES DE INVESTIGACIÓN 003974, UNIVERSIDAD DEL ROSARIO - FACULTAD DE ECONOMÍA. [Downloadable!]

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