Asian Economic Integration Report 2016: What drives foreign direct investment in Asia and the Pacific?
The 2016 version of the Report includes a chapter on the factors behind the growth of Foreign Direct Investment (FDI) in Asia and the Pacific and the related policy implications. 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. The Report concludes that FDI and greater trade openness can strengthen the region’s resilience to slow global growth, but countries need to improve their business environment, institutional quality and policy effectiveness to encourage FDI. Greater trade openness through more regional trade agreements and bilateral investment treaties can also increase FDI.
Source: Asian Development Bank (ADB)