2017-2018全球投资竞争力报告（英文版）-13mb

2017/2018 Global Investment Competitiveness Report Summary

Core Content

The 2017/2018 Global Investment Competitiveness Report by the World Bank Group provides an in-depth analysis of foreign direct investment (FDI) in developing countries, highlighting its role in economic development and the policy implications for both investors and host nations. The report is structured around five main chapters, each addressing different aspects of FDI, including investor perspectives, FDI impacts on local firms, corporate tax incentives, outward FDI, and FDI in fragile and conflict-affected situations (FCS).

Main Views and Key Information

Foreign Investor Perspectives and Policy Implications

• Investor Motivations: The report emphasizes that investors in developing countries are motivated by a mix of factors, including market-seeking, efficiency-seeking, and resource-seeking. These motivations are often interrelated.
• Key Drivers of Investment Decisions: A business-friendly legal and regulatory environment is identified as the most critical factor influencing investment decisions. Political stability, security, and macroeconomic conditions are also important.
• Investment Incentives: Duty-free imports, tax holidays, and VAT exemptions are the most attractive investment incentives. Investors also value the procedural efficiency of entering and establishing affiliates.
• Investment Climate: Investors seek predictable, transparent, and efficient conduct of public agencies. The report highlights the importance of reducing wait times for investment approvals and improving the capacity and skills of local suppliers.
• Exit Reasons: Investors exit investments for mixed reasons, some of which are controllable (e.g., poor policy environment) and others not (e.g., political instability or economic downturns).

Effects of FDI on High-Growth Firms

• High-Growth Firms Benefit Most: High-growth firms, defined as those with the highest job creation rates, benefit the most from FDI through linkages and demonstration effects.
• Linkages Channel: An increase in the share of inputs sourced domestically by foreign firms is correlated with a rise in output growth of high-growth domestic firms. This suggests that FDI can improve the productivity of local suppliers.
• Demonstration Effect: Exposure to foreign output in a sector leads to productivity gains for domestic firms. This is often through the imitation of foreign technologies and management practices.
• Case Studies: The report includes examples such as "AAA Growers" in Kenya and Chile's Supplier Development Program, illustrating how FDI can support local firms in developing economies.

Corporate Tax Incentives and FDI in Developing Countries

• Tax Incentives Are Widespread: Tax incentives are common in developing countries, especially in construction and manufacturing.
• Fiscal Incentives: Many developing countries have introduced or expanded tax incentives. These are often used in sectors with high competition for efficiency-seeking FDI.
• Transparency and Effectiveness: While tax incentives are used, their effectiveness in attracting FDI is mixed. The report advocates for transparent and well-targeted tax policies to improve investment outcomes.

Outward FDI from Developing Countries

• Outward FDI Benefits Source Economies: Outward FDI (OFDI) allows MNCs from developing countries to strengthen their capabilities and competitiveness by accessing foreign markets, technologies, and lower-cost inputs.
• OFDI Trends: East Asia and the Pacific lead in OFDI from developing countries. The report notes that OFDI is increasingly used by developing country MNCs to boost innovation and exports.
• OFDI Restriction: Developing countries have a mixed record on OFDI restrictions, with some maintaining policies that limit outward investment.
• Sectoral Preferences: Manufacturing MNCs from developing countries tend to invest via M&A, while services MNCs may prefer other methods.

FDI in Fragile and Conflict-Affected Situations

• FDI in FCS: FDI in fragile and conflict-affected situations is below potential, indicating underutilization of investment opportunities in such regions.
• Sectoral Concentration: Foreign investors tend to concentrate in natural resource and capital-intensive sectors. Outside these, they are more cautious.
• Postconflict Opportunities: Postconflict growth is often concentrated in construction and other sectors, suggesting that FDI can play a key role in recovery and development.
• Policy Recommendations: The report recommends prioritizing economic reforms and improving government effectiveness to attract more FDI to FCS.

Key Figures and Data

• FDI Inflows: In 2016, over 40% of global FDI flows were directed to developing countries, totaling nearly $1.75 trillion (Figure O.1).
• Investment Potential in FCS: FDI flows to FCS remain below potential, even when the negative effects of fragility are excluded (Map O.1).
• Impact on High-Growth Firms: A 1 percentage point increase in domestic input sourcing by foreign firms correlates with a 0.6 unit rise in output growth for high-growth domestic firms (Figure O.2).
• OFDI Trends: East Asia and the Pacific lead in OFDI from developing countries, with China being a top outward investor (Figure 4.3).

Policy Implications

• Enhancing Investment Competitiveness: The report introduces a new concept of investment competitiveness, emphasizing the ability of countries to attract, retain, and integrate private investment.
• Business Environment: A conducive business environment is essential for both domestic and foreign firms to enter, expand, and develop linkages with local and global economies.
• Targeted Policies: Policymakers should focus on identifying and supporting high-growth firms, improving absorptive capacity, and promoting transparent and efficient investment policies.
• Support for FDI Linkages: Policies that encourage linkages between foreign firms and local suppliers can enhance knowledge transfer and productivity.
• Global Public Goods: FDI can contribute to global public goods, climate change mitigation, labor condition improvements, and infrastructure development, especially in conflict-affected regions.

Conclusion

This report underscores the importance of FDI in driving economic growth, innovation, and job creation in developing countries. It also highlights the need for policy reforms to enhance investment competitiveness and to better leverage FDI for inclusive and sustainable development. The findings suggest that while FDI has significant potential, it is often constrained by political risks, regulatory inefficiencies, and limited absorptive capacities of local firms. The report serves as a valuable resource for policymakers, investors, and researchers seeking to understand and improve the investment climate in developing economies.