International Investment Perspectives 2003

image of International Investment Perspectives 2003

Foreign Direct Investment (FDI) has cooled dramatically. Many OECD countries are presently recording inflows of less than 25% of what they received just two years ago. However, developing countries and transition economies have been less affected by the decline. They now receive more than a third of worldwide FDI flows, underscoring the potential of direct investment to act as a catalyst for growth and sustainable development.

This volume contains an assessment of trends and recent developments, an article on China's investment policy reform, an article on policies and incentives for attracting foreign direct investment, a special focus on transparency and investment, and a report on a survey of implementation of methodological standards for direct investment.

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China's Foreign Investment Policy Reform

From Incentives to Modern Rules

China has made progress in providing a business conducive to foreign direct investment (FDI). The challenge now is to move towards a more rules-based policy framework that will attract high-quality FDI from OECD countries. The OECD proposes a number of policy options for the Chinese government to consider in further developing such a framework. These include additional streamlining of the investment project approval process, reconsideration of unnecessary sectoral restrictions on foreign investment, and measures to increase transparency and strengthen the rule of law. This article is based on the recent publication China: Progress and Reform Challenges, OECD Investment Policy Review, 2003...


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