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Foreign Direct Investment in Developing Asia: Trends, Effects, and Likely Issues for the Forthcoming WTO Negotiations

Author

Listed:
  • Brooks, Douglas H.

    (Asian Development Bank)

  • Fan, Emma Xiaoqin

    (Asian Development Bank)

  • Sumulong, Lea R.

    (Asian Development Bank)

Abstract

Foreign direct investment (FDI) flows have increased dramatically in recent decades. As developing countries, particularly in Asia, remove restrictions and implement policies to attract FDI inflows, trade, and investment have become increasingly intertwined. As such, there have been growing calls for a multilateral framework of foreign investment rules to be negotiated under the auspices of the World Trade Organization (WTO). This paper reviews recent developments in FDI flows and their impacts in developing Asia, and the importance of the policy context in which those flows occur. It discusses advantages and disadvantages of including FDI in WTO negotiations, and related policy options for developing Asian economies.

Suggested Citation

  • Brooks, Douglas H. & Fan, Emma Xiaoqin & Sumulong, Lea R., 2003. "Foreign Direct Investment in Developing Asia: Trends, Effects, and Likely Issues for the Forthcoming WTO Negotiations," ADB Economics Working Paper Series 38, Asian Development Bank.
    • Handle: RePEc:ris:adbewp:0038
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    More about this item

    Keywords

    developing Asia; foreign direct investment; multilateral framework; policy context; WTO negotiations;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • O24 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy

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