Geography Reference
In-Depth Information
In spite of the negative impact of the global economic crisis on
foreign direct investment flows, the internationalization of firms
worldwide has continued to grow: the estimated number of MNEs
in 2008 was around 82,000, with foreign affiliates' share in global
GDP peaking at 11 per cent in 2009 (it was approximately 5 per
cent of global GDP in 1980), representing one-third of world
exports, and foreign employment of MNEs reaching 80 million
in the same year (UNCTAD 2010). MNEs, in their operations at
the worldwide level, generated a value added of approximately
16 trillion US dollars in 2010, representing more than a quarter
of global GDP (UNCTAD 2011). MNEs' international production
(i.e. the value added generated by foreign affiliates) accounts for
approximately 40 per cent of MNEs' total value added: despite
the economic crisis and the drop in foreign direct investment
(FDI) flows since 2008, international production has thus grown
from the 35 per cent share registered in 2005 (UNCTAD 2011).
The increasing internationalization of the world economy is
strongly reflected in the shares of FDI stocks, both inward and
outward, with respect to GDP, which, as is shown in Tables 1.1
and 1.2 has tripled at the global level between 1990 and 2009
(UNCTAD 2010).
Table 1.1
FDI inward stock as a percentage of GDP,
1990-2009 (per cent)
Region / economy
1990
1995
2000
2005
2009
World
9.8
11.4
23.3
25.4
30.7
Developed economies
9.0
10.8
23.0
25.5
31.5
Europe
10.7
12.7
27.5
34.2
46.5
European Union (27)
10.6
12.5
27.5
34.1
45.5
Other developed Europe
13.0
16.1
27.6
36.7
66.4
North America
10.2
14.2
28.6
23.4
23.4
Other developed countries
a
2.8
2.9
4.1
7.8
10.5
Developing economies
13.6
14.6
25.0
25.2
29.1
Africa
12.1
17.0
26.0
27.3
34.6
North Africa
12.6
16.2
17.4
22.9
32.5
Other Africa
11.8
17.5
32.7
29.8
36.0
Latin America and the Caribbean
9.9
10.5
24.3
29.7
36.5
South and Central America
9.7
10.3
21.5
26.2
29.8
Caribbean
13.4
14.2
81.5
99.8
187.5
Asia
15.8
18.3
25.2
23.1
25.7
