Global Agenda Council on Global Trade & FDI 2012-2014
Foreign direct investment (FDI) is a powerful instrument for growth and development. Today, it is recognized as a crucial driver of trade, via global value chains. FDI increases investment flows, which boosts the global economy, creates jobs, promotes knowledge and increases productivity. Statistics from the United Nations Conference on Trade and Development (UNCTAD) and the International Monetary Fund show that worldwide FDI grew by an annual average of 9% between 2000 and 2011. This correlates positively with the global average gross domestic product (GDP), which grew by an average of 7% in the same period. In addition, a UNCTAD study reports a significant correlation between levels of inward FDI and participation in global value chains.