World Investment Report 2011: Non-equity modes of international production and development

The 2011 Report analyses the growing importance of non-equity modes of international production, including contract manufacturing, contract farming, franchising, licensing and business process outsourcing. It examines how these arrangements complement or substitute for foreign direct investment and assesses their implications for economic development. Particular attention is given to the role of non-equity modes in integrating developing and transition economies into global production networks. The Report evaluates opportunities for technology transfer, employment generation, productivity growth and export expansion arising from these forms of international business engagement. It also considers regulatory and policy challenges associated with governance, labour standards, value capture and enterprise development. The analysis highlights the increasing diversity of international production systems and identifies policy approaches that can maximize developmental benefits while strengthening domestic productive capacities and competitiveness.