Asian Economic Integration Report 2016: What drives foreign direct investment in Asia and the Pacific?
This issue of the Asian Economic Integration Report includes a special theme chapter on the factors behind the growth of Foreign Direct Investment (FDI) in Asia and the Pacific, as well as the related policy implications. Greater trade openness and FDI can strengthen the region’s resilience to slow global growth, but countries need to improve their institutional quality, business environment and policy effectiveness to encourage FDI. Asia and the Pacific attracts almost a third of total global FDI, among which more than half is now intraregional, driven by the expansion of global and regional value chains. Greater trade openness through more regional trade agreements and bilateral investment treaties can also increase FDI.
Source: Asian Development Bank