Introduction

Foreign direct investment (FDI) is defined as a long-term investment by a

foreign direct investor in an enterprise resident in an economy other than
that in which the foreign direct investor is based. Foreign direct
investment (FDI) is aiso defined as "investment made to acquire lasting
interest in enterprises operating outside of the economy of the investor.
The FDI relationship consists of a parent enterprise and a foreign affiliate
which together form a Multinational corporation (MNC). In order to qualify
as FDI the investment must afford the parent enterprise control over its
foreign affiliate. The UN defines control in this case as owning 10% or
more of the ordinary shares or voting power of an incorporated firm or its
equivalent for an unincorporated firm; lower ownership shares are known
as portfolio investment.

Foreign Direct Investment (FDI) flows have increased dramatically in last

few 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 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.

Objectives:
1. To identify the actual status of FDI.
2. What kind of changes has brought by the FDI in the world economy.
3. In what condition FDI may be beneficial for a country.
4. What type of FDI can bring what type of benefits.
5. Which country has created the highest potentiality in FDI, which is the
leading country in respect of this.
6. Which country has the highest FDI in Bangladesh.

History
In the years after the Second World War global FDI was dominated by the
United States, as much of the world recovered from the destruction
brought by the conflict. The US accounted for around three-quarters of
new FDI (including reinvested profits) between 1945 and 1960. Since that
time FDI has spread to become a truly global phenomenon. FDI has grown

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in importance in the global economy with FDI stocks now constituting over
20 percent of global GDP.

In the US, in the late 1960s and early 1970s, foreign direct investment
became increasingly politicized. Organized labor, convinced that foreign
investment exported jobs, undertook a major campaign to reform the tax
provisions which affected foreign direct investment. The Foreign Trade and
Investment Act of 1973 (or the Burke-Hartke Bill) would have eliminated
both the tax credit and tax deferral. The Nixon Administration, influential
members of Congress of both parties, and well-financed lobbying
organizations came to the defense of the multinational. The massive
counterattack of the multinational corporations and their allies defeated
this first major challenge to their interests.

Different Types of FDI

By Direction

Inward:

Inward foreign direct investment is a particular form of inward investment

when foreign capital is invested in local resources.

Inward FDI is encouraged by:

• Tax breaks, subsidies, low interest loans, grants, lifting of certain

restrictions
• The thought is that the long term gain is worth more than the short
term loss of income

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Inward FDI is restricted by:

• Ownership restraints or limits

• Differential performance requirements

Outward:

Outward foreign direct investment, sometimes called "direct investment

abroad", is when local capital is invested in foreign resources. Yet it can
also be used to invest in imports and exports from a foreign commodity
country.

Outward FDI is encouraged by:

• Government-backed insurance to cover risk

Outward FDI is restricted by:

• Tax incentives or disincentives on firms that invest outside of the

home country or on repatriated profits
• Subsidies for local businesses
• Leftist government policies that support the nationalization of
industries (or at least a modicum of government control)
• Self-interested lobby groups and societal sectors who are supported
by inward FDI or state investment, for example labour markets and
agriculture.
• Security industries are often kept safe from outwards FDI to ensure
localised state control of the military industrial complex

By Target

Greenfield investment

Direct investment in new facilities or the expansion of existing facilities.

Greenfield investments are the primary target of a host nation’s
promotional efforts because they create new production capacity and jobs,
transfer technology and know-how, and can lead to linkages to the global
marketplace. The Organization for International Investment cites the
benefits of greenfield investment (or insourcing) for regional and national
economies to include increased employment (often at higher wages than
domestic firms); investments in research and development; and additional
capital investments. Criticism of the efficiencies obtained from greenfield
investments include the loss of market share for competing domestic
firms. Another criticism of greenfield investment is that profits are

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perceived to bypass local economies, and instead flow back entirely to the
multinational's home economy. Critics contrast this to local industries
whose profits are seen to flow back entirely into the domestic economy.

Mergers and Acquisitions

Transfers of existing assets from local firms to foreign firms takes place;
the primary type of FDI. Cross-border mergers occur when the assets and
operation of firms from different countries are combined to establish a new
legal entity. Cross-border acquisitions occur when the control of assets and
operations is transferred from a local to a foreign company, with the local
company becoming an affiliate of the foreign company. Unlike greenfield
investment, acquisitions provide no long term benefits to the local
economy-- even in most deals the owners of the local firm are paid in
stock from the acquiring firm, meaning that the money from the sale could
never reach the local economy. Nevertheless, mergers and acquisitions are
a significant form of FDI and until around 1997, accounted for nearly 90%
of the FDI flow into the United States. Mergers are the most common way
for multinationals to do FDI.

Horizontal FDI

Horizontal FDI occurs when the multinational undertakes the same

production to activities in multiple countries.

Vertical FDI

Backward Vertical FDI

Where an industry abroad provides inputs for a firm's domestic

productions.

Forward Vertical FDI

Where an industry abroad sells the outputs of a firm's domestic

production.

By Motive

FDI can also be categorized based on the motive behind the investment
from the perspective of the investing firm:

Resource-Seeking

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Investments which seek to acquire factors of production that are more
efficient than those obtainable in the home economy of the firm. In some
cases, these resources may not be available in the home economy at all
(e.g. cheap labor and natural resources). This typifies FDI into developing
countries, for example seeking natural resources in the Middle East and
Africa, or cheap labor in Southeast Asia and Eastern Europe.

Market-Seeking

Investments which aim at either penetrating new markets or maintaining

existing ones. FDI of this kind may also be employed as defensive
strategy; it is argued that businesses are more likely to be pushed towards
this type of investment out of fear of losing a market rather than
discovering a new one. This type of FDI can be characterized by the
foreign Mergers and Acquisitions in the 1980’s by Accounting, Advertising
and Law firms.

Efficiency-Seeking

Investments which firms hope will increase their efficiency by exploiting

the benefits of economies of scale and scope, and also those of common
ownership. It is suggested that this type of FDI comes after either resource
or market seeking investments have been realized, with the expectation
that it further increases the profitability of the firm.

Strategic-Asset-Seeking

A tactical investment to prevent the gain of resource to a competitor.

Easily compared to that of the oil producers, whom may not need the oil at
present, but look to prevent their competitors from having it.

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 Review of Literature

According to the Comment on Bangladesh's competitive position as found

in "The 15th Survey of Investment-Related Cost Comparison in Major Cities
and Regions in Asia", "the investment cost in Bangladesh has become
cheaper compare to the last year and Bangladesh succeeded to develop
herself as more competitive than other countries which are potential from
the investment point of view to foreign investors".

China's combined direct investments abroad amounted to $92.05 billion by the

end of 2007, said a senior official of the China Council for the Promotion of
International Trade (CCPIT) on Wednesday.

Zhang Wei, vice chairman of the CCPIT, said in Beijing that since the government
initiated the "going global" strategy for domestic companies in 1998, Chinese
companies' enthusiasm for investing overseas has been on the rise, big privately-
owned enterprises in particular. The CCPIT, and also the China Chamber of
International Commerce, have formulated programs in 2006 to facilitate domestic
companies' global strategy to help them make better use of the domestic and
international markets, he added. The 2nd Chinese Enterprise Outbound
Investment Conference, organized by the CCPIT and the Ministry of Commerce,
would be held from April 22-23 in Beijing, according to the CCPIT. By the end of
2006, more than 5,000 Chinese investment entities had established almost
10,000 companies overseas in 172 countries and regions, with the combined
outbound investment reached $90.63 billion.

The Institute of International Finance found that FDI into emerging markets
increased from $119bn in 2006 to an estimated $256bn last year, with a
further increase to $286bn predicted for this year. The research said: “The
strength of FDI comes despite an evident rise in global corporate caution
in recent months.” Overall capital flows into emerging markets reached an
estimated $782.4bn in 2007, increasing from $568.2bn in 2006 and
$521bn in 2005. The trend is set to continue, with strong FDI flows
projected globally; China is expected to lead the way at $88bn and Latin
America is likely to attract $55bn.

Consulting group OCO Global found that China to be retaining its 2006
ranking as the top global destination for multinational investment,
attracting 1171 projects.

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The burgeoning literature on outward foreign direct investment from
emerging markets has largely focused on analysing the motives of
investors as reported by parent companies. The analysis is based on a
sub-set of firms drawn from the overall sample of 1,216 foreign-owned
firms participating in the UNIDO Africa Foreign Investor Survey, carried out
in 2005. The sample of investments originating from China, India and
South Africa is analysed in terms of firm characteristics, past and forecast
performance in SSA over three years and management’s perception of
ongoing business conditions. Comparisons are made with foreign investors
from the North. The paper concludes that while investors in SSA from the
three countries are primarily using their investment to target specific
markets, they are largely operating in different sub-sectors. While there
appear to be specific features that firms from a given country of origin
share, there are no obvious operating-level features they all share apart
from market seeking.

China's dramatic success in attracting foreign direct investment (FDI) has

raised concerns that it has success diverted FDI from other countries in
Asia. The paper develops a new methodology to estimate crowding out,
and we use it to investigate the impact of China's emergence on FDI flows
to Asia using data from 14 Asian economies from 1984 to 2002. The
results suggest that China did not have much impact on FDI to other
countries. In particular, low-income economies, which compete with China
for low-wage investment and countries with low levels of education or
scientific development, do not seem to have been especially affected.

Does environmental regulation impair international competitiveness of

pollution-intensive industries to the extent that they relocate to countries
with less stringent regulation, turning those into "Pollution havens"? This
hypothesis is tested using panel data on outward Foreign Direct
Investment (FDI) flows of various industries in the German manufacturing
sector and account for several econometric issues that have been ignored
in previous studies. Most importantly, externalities associated with FDI
agglomeration can bias estimates away from finding pollution havens if
omitted from the analysis. The stock of FDI as a proxy for agglomeration
and employ econometric techniques is included that control for its
endogenously.

Foreign Direct Investment (FDI) flows have increased dramatically in last

few 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

7
to be negotiated under the auspices of the World Trade Organization
(WTO). This paper reviews 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.

There is widespread concern in many parts of Asia and Latin America that
rising foreign investment to the People's Republic of China (PRC) is at the
expense of investment and jobs in these economies. It examines this fear
empirically using a regression model to explain foreign investment in
these economies. Contrary to popular opinion, foreign investment to PRC
appears to stimulate investment to rather than divert investment from
other countries in Asia. However, it is not the most important factor at
work. The size of a country's domestic market and several policy variables
are the key factors. In Latin America, with the possible exception of
Mexico, foreign investment to PRC has an insignificant impact on
investment to other countries.

Mumbai, Apr 25 There will be modest and temporary decline in global

foreign direct investment (FDI) inflows in 2008, on the back of slowing
mergers and acquisitions (M&As) activity, before a resumption of steady
growth in 2009-11. A report by the Economic Intelligence Unit (EUI) titled
“World Investment Prospects to 2011 :FDI and the challenge of political
risk” released on Thursday, said the recent global financial turmoil would
have only a limited impact on FDI flows, primarily through a dampening
impact on cross-border M&As. EIA has done the analysis of detailed five-
year forecasts for 82 leading FDI recipient countries of investment and
market trends.

Methodology
Considering the extensiveness, efficacy and reliability I depended on
different web sites related to FDI to gather the information and included
these in this term paper. At first I got some instruction about FDI like what
is it? Its types with example, Why it is important? Bangladesh condition in

8
respect of this? What is its effect? Etc. from my honorable class teacher.
He also suggest me to go through the text book and some other related
books to get more information about it. According to his instruction I went
through the books and related websites to get a better conception about
FDI and then I accumulate all of my collected knowledge and personal
conception in this term paper to complete it.

FDI Status in Bangladesh

FDI Inflow Survey is a statistical approach of collecting primary data on the
actual FDI inflow into a country in a given period. In Bangladesh, this
approach was introduced by BOI in February 2003. It was the firstever
attempt to gather credible data on actual FDI inflow on the basis of
definition given by UNCTAD. The successful completion of the first FDI
Inflow survey and its wider recognition encouraged BOI to undertake such
surveys on regular basis. This FDI Inflow Survey is the fourth of its series
and presents actual FDI inflow data for the period January to December
2004.

Sectoral Distribution of FDI

In a broader sectoral distribution of FDI in 2004, service sector (66.76%)
emerged as the leading sector
followed by manufacturing (31.30%) and others. Exhibit 2 presents the
broad sectoral distribution:
a. Telecom, Energy and Power: Substantial inflow in the telecom and
energy subsectors is the key reason behind rise of service sector in FDI.

Exhibit 2: Sectoral Distribution of FDI in 2004

Telecom: 36%
Manufacturing: 31%
Energy & Power: 20%
Others: 13%

Telecom represents 36% of total FDI, while energy and power accounts for
about 20%. As a result of opening the PSTN telephony to the private
sector, a sustainable robust growth in the telecom sector is envisaged in

9
the coming years. Besides, existing cellular operators are also expected to
continue their investment program to firm up healthier market position.
The projected growth of the industry in the coming years would require
establishment of sufficient utility infrastructure like energy and power to
support the momentum. In view of this situation, more FDI and also local
investment in these sub-sectors are projected in the medium and long
term.

FDI Inflow by Sources

The sources of FDI in Bangladesh during 2004 are quite diversified
involving 30 countries from amongst all region of the world. Exhibit 3 and
Table 4 present detail of FDI sources and their ranking.
a. Developed economies: Almost two-third (63.30%) of FDI in 2004 was
originated from the developed economies, while the share of developing
countries is 36.70%
Western Europe is the largest regional source (45.22%) of FDI in
Bangladesh during 2004, which could be sub-divided into two - European
Union (18.00%) and other Western Europe (27.22%).
North America's investment amounts to 13.33% and other developed
economies' share is 4.75%.
b. Developing economies: The developing region consists of Asia (33.61%)
- the second largest
Source - that includes South, East and South East Asia (31.47%) and West
Asia (2.14%). Africa also contributes 3.02% of FDI in 2004.
c. Source versus sectors: In general, investments from the developing
countries are manufacturing oriented. On the other hand, developed
countries' investments are mostly service-oriented.

Distribution of FDI Inflow by Sources

European Union: 18.00%
Other Western Europe: 27.22%
South, East and South-East Asia: 31.47%
North America: 13.33%
Japan: 4.72%
West Asia: 2.14%
Africa: 3.02%

Top-10 FDI source countries are (1) Norway, (2) UK, (3) USA, (4)
South Korea, (5) Malaysia, (6) Hong Kong, (7) Taiwan, (8) Japan (9)
Canada and (10) Egypt.

Mid-Term Strategic Plan 2003-06: FDI Target and Achievement

Under the Mid-term Strategic Plan (MSP) 2003-06, FDI target for the year
2006 was set at US$ 1.00 (one) billion. The target is based on the basis of
annual growth of 35% during the subject period. Following Exhibit 4

10
illustrates the year-wise FDI target and its current achievement status in
brief:
Note 1: FDI Target was set since 2003.
Note 2: Actual FDI Figures for 2005 and 2006 would be available after
conducting surveys in the following years.
Source: Mid-term Strategic Promotional Plan 2003-06 and Results of FDI
Inflow Survey by BOI and BEPZA.
Given the present trend of industrial and manufacturing growth and
macro-economic situation, BOI is expecting to achieve the 2005 and 2006
targets of FDI.

List of countries by received FDI

This is a list of countries by FDI (Foreign direct investment) in 2006

mostly based on CIA Factbook accessed in January 2008.

Rank by sovereign Country/Region FDI (in US$)

state
1. United States 1,818,000,000,000
2. United Kingdom 1,135,000,000,000
3. Hong Kong 769,100,000,000
4. Germany 763,900,000,000
5. China 699,500,000,000
6. France 697,400,000,000
7. Belgium 633,500,000,000
8. Netherlands 450,900,000,000
9. Spain 439,400,000,000
10. Canada 398,400,000,000
11. Italy 294,800,000,000
12. Russia 271,600,000,000
13. Australia 246,200,000,000
14. Mexico 236,200,000,000
15. Switzerland 232,500,000,000
16. Brazil 214,300,000,000
17. Sweden 199,600,000,000
18. Singapore 189,700,000,000
19. Ireland 179,000,000,000
20. Denmark 138,400,000,000
21. South Korea 118,000,000,000
22. Poland 104,200,000,000
23. Hungary 96,610,000,000
24. Japan 88,620,000,000

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25. Portugal 85,520,000,000
26. Turkey 84,530,000,000
27. Chile 84,070,000,000
28. Malaysia 77,700,000,000
29. Czech Republic 77,460,000,000
30. South Africa 77,350,000,000
31. Thailand 69,060,000,000
32. India 67,720,000,000
33. Austria 66,320,000,000
34. Finland 64,180,000,000
35. New Zealand 63,120,000,000
36. Argentina 60,040,000,000
37. Norway 56,700,000,000
38. Israel 47,390,000,000
39. Venezuela 45,400,000,000
40. Colombia 45,010,000,000
41. Taiwan 44,880,000,000
42. UAE 42,580,000,000
43. Greece 41,320,000,000
44. Romania 40,690,000,000
45. Egypt 37,660,000,000
46. Nigeria 31,660,000,000
47. Kazakhstan 29,820,000,000
48. Vietnam 26,270,000,000
49. Morocco 23,500,000,000
50. Indonesia 21,910,000,000
51. Tunisia 21,220,000,000
52. Ukraine 21,190,000,000
53. Bulgaria 20,860,000,000
54. Peru 19,360,000,000
55. Slovakia 19,080,000,000
56. Croatia 18,330,000,000
57. Angola 17,600,000,000
58. Philippines 16,370,000,000
59. Estonia 16,320,000,000
60. Ecuador 14,670,000,000
61. Pakistan 14,670,000,000
62. Algeria 14,370,000,000
63. Azerbaijan 12,580,000,000
64. Bahrain 11,550,000,000
65. Cuba 11,240,000,000
66. Lithuania 10,940,000,000
67. Dominican Republic 10,670,000,000
68. Qatar 10,630,000,000
69. Jordan 8,154,000,000

12
 70. Slovenia 7,459,000,000
71. Costa Rica 6,897,000,000
72. Latvia 6,418,000,000
73. El Salvador 4,377,000,000
74. Iran 4,345,000,000
75. Libya 4,305,000,000
76. Bangladesh 4,208,000,000
77. Kenya 1,169,000,000
78. Bosnia and 833,482,000
Herzegovina
79. Kuwait 818,000,000

International investment position

A country's international investment position (IIP) is a financial
statement setting out the value and composition of that country's external
financial assets and liabilities. The IIP is one component of the capital
account of a country's balance of payments, containing for example stock
of companies, real estate, financial instruments, and so on. By
comparison, imports and exports of goods and services are part of the
current account.

The difference between a country's external financial assets and liabilities

is the net international investment position (NIIP).

International Investment Position = domestically owned foreign assets -

foreign owned domestic assets.

Banglades:

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India:

China

ASIAN FOREIGN DIRECT INVESTMENT IN AFRICA:

Foreign direct investment (FDI) in Africa by developing Asian economies is

growing and has the potential to reach much higher levels, a joint report
by UNCTAD and the United Nations Development Programme (UNDP) says.
Most such investment is now targeted at African natural resources, but the

14
report contends that if appropriate policies are adopted more may be
channelled into industry and manufacturing.

The report, Asian Foreign Direct Investment in Africa: Towards a

New Era of Cooperation among Developing Countries, notes that
Africa-bound FDI is still a small percentage of the rapidly climbing foreign
investments being made by Asian transnational corporations (TNCs). (East
and South-East Asia are now home to almost four-fifths of the top 100
TNCs from developing countries.). Outward Asian FDI has expanded
rapidly, reaching a record US$90 billion in 2006. During 2002-2004, FDI
outflows from developing Asia averaged US$46 billion, of which flows to
Africa made up only US$1.2 billion annually. Most of the total goes to other
Asian economies; that directed from Asia to Africa nonetheless makes up
the largest inter-regional FDI flow in the developing world.

There is rising interest in Africa as an investment location, in part because

of the complementary nature of economic development between Asian
and African countries, the report says. Traditionally, FDI flows from
developing Asia to Africa were mainly from the Asian newly industrializing
economies (Hong Kong SAR, Republic of Korea, Singapore, and Taiwan
Province of China). But recently, China and India have emerged as
significant sources. Singapore, India and Malaysia currently are the top
Asian originators of FDI in Africa, with investment stocks of US$3.5 billion
(cumulative approved flows from 1996 to 2004), US$2 billion and US$1.9
billion through 2004, respectively, followed by China, the Republic of
Korea, and Taiwan Province of China (table).

Over the past few years, China has become one of Africa’s important
partners for trade and economic cooperation. Trade (exports and imports)
between Africa and China increased from US$11 billion in 2000 to US$56
billion in 2006. China’s FDI stock in Africa had reached US$1.6 billion by
2005 (table), with Chinese companies present in 48 African countries,
although Africa still accounts for only 3% of China’s outward FDI. A few
African countries have attracted the bulk of China’s FDI in Africa: Sudan is
the largest recipient (and the 9th largest recipient of Chinese FDI
worldwide), followed by Algeria (18th) and Zambia (19th).

Africa has the potential to become an important investment location for

Asian companies in particular. The rapid economic growth in Asia can be
expected to lead to increased Asian investments in Africa, in both natural
resources and manufacturing. In particular, the rapid industrial upgrading
taking place in Asia provides ample opportunities for Africa to attract
efficiency-seeking and export-oriented FDI from Asian economies.

To reap the potential of expanding Asian interest, African Governments

could draw on important lessons from many Asian countries now showing
high economic growth and upgraded industrial activity, the report

15
contends. Those countries made strategic investments in education and
infrastructure that were crucial not only for promoting economic
development in general but for attracting and benefiting from efficiency-
seeking and export-oriented FDI.

African countries need to make substantial efforts to enhance their

productive capacities in a variety of industries, the report says. Sector-
neutral and passive policies should be replaced by flexible, well-targeted
efforts to spur FDI that leads to broad-based growth. An important
objective for African countries where FDI is concentrated in extractive
industries should be to add value to existing investments and to promote
investment in other sectors. African governments need to pay attention to
attracting manufacturing projects and to building the domestic capabilities
necessary for such activities. They also should strive to enhance
"backward" linkages between foreign affiliates and domestic firms,
especially small and medium-sized enterprises.

Asian Foreign Direct Investment in Africa: Towards a New Era of

Cooperation among Developing Countries was financed by a contribution
by the Government of Japan to UNDP through the Japan Human Resources
Development Fund for South-South Cooperation.

Conclusion
Foreign direct investment (FDI) is an investment involving a long-term
relationship and reflecting a lasting interest and control by a resident

16
entity in one economy (foreign direct investor or parent enterprise) in an
enterprise resident in an economy other than that of the foreign direct
investor (FDI enterprise or affiliate enterprise or foreign affiliate). FDI
implies that the investor exerts a significant degree of influence on the
management of the enterprise resident in the other economy. Such
investment involves both the initial transaction between the two entities
and all subsequent transactions between them and among foreign
affiliates, both incorporated and unincorporated. FDI may be undertaken
by individuals as well as business entities.

Foreign direct investment (FDI) continues to gain in importance as a form

of international economic transactions and as an instrument of
international economic integration. The rate of growth of worldwide FDI
inflows in the past two decades has substantially exceeded that of
worldwide gross domestic product (GDP), exports and domestic
investment. Transnational corporations (TNCs) account for an increasing
share and, in some cases, a substantial part of the assets, employment,
domestic capital formation, research and development, sales and trade of
many countries and have become one of the driving forces of integration
in the world economy.

References
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and Data Sources, Dhaka: Bangladesh Bureau of Statistics.

Dunning, J. H. (1993). Multinational enterprises and the global economy.

Wokingham, England ; Reading, Mass, Addison-Wesley.

Dunning, J. H., B. Kogut and M. Blomstrom (1990). Globalization of firms

and the competitiveness of nations. Lund, Institute of Economic
Research Lund University ; Bromley : Chartwell-Bratt c1990.

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Foreign Direct Investment, United Nations Conference on Trade and
Devolpment, www.unctad.org

Gilpin, R. (1986) U.S. Power and the Multinational Corporation- The Political
Economy of Foreign Direct Investment. New York: Basica Books, Inc.,
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Knickerbocker identified this phenomenon in his ‘follow-my-leader’
hypothesis in: Knickerbocker, F. T. (1973). Oligopolistic reaction and
multinational enterprise. Boston(Mass.), Division of Research Graduate
School of Business Administration Harvard University.

International Monetary Fund (1993) Balance of Payments Manual, 5th

edition, Washington, D.C.: IMF.

OECD (1996) Detailed Benchmark Definition of Foreign Direct Investment,

3rd edition, Paris: OECD.

The World Bank (1990) Foreign Direct Investment in Bangladesh: Issues of

Long-run Sustainability, Dhaka: The World Bank

UNCTAD (2000) World Investment Directory 2000, Vol. VII-Part I Asia and
the Pacific, New York & Geneva: United Nations.

UNCTAD (2002) World Investment Report 2002: Transnational Corporations

and Export Competitiveness, New York & Geneva: United Nations.

UNCTAD (2003) World Investment Report 2003: FDI Policies for

Development: National and International Perspectives, New York &
Geneva: United Nations.

UNCTAD (2004) World Investment Report 2004: The Shift towards Services,
New York & Geneva: United Nations.

http://www.adbi.org/discussion-paper/2004/11/16/810.fdi.prc.effect/
http://jobfunctions.bnet.com/abstract.aspx?&docid=313956&promo=1005
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http://jobfunctions.bnet.com/abstract.aspx?docid=152320

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