LONDON, ON - April 29th, 2016 – Foreign direct investment (FDI) attraction is critical to a country’s future economic performance. In their research paper FDI by the Numbers for the Lawrence National Centre for Policy and Management at the Ivey Business School David Moloney and Sandra Octaviani discuss how enormous movements of global capital in pursuit of productive opportunities are re-shaping the global economy.
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“If Canada is to compete successfully for investment from the world’s corporations and against every other potential location around the world for the economic activity that flows from investments in plant, equipment, technology and acquired skills, then we must understand the trends and underlying dynamics of global FDI flows,” says David Moloney, Adjunct Research Professor, Ivey Business School.
In their scene-setting study Moloney and Octaviani find the volume of global FDI has grown six-fold over the past 25 years. Their work examines not only the explosive FDI growth in developing countries, but also the phenomenon that many global companies are steering their FDI to produce for local markets at the point of investment.
Finally, the paper puts Canada’s FDI situation into context. On the surface Canada’s FDI appears in line with GDP figures, but digging deeper, the research shows an over-reliance on the mining and petroleum sectors and a marked shortfall of greenfield investment when compared to competitor nations such as the United States and Mexico.
Moloney and Octaviani’s FDI by the Numbers can be found at this link: /media/2532362/fdi-by-the-numbers.pdf
This paper is the second report in the Lawrence Centre’s ongoing series Attracting Global Mandates. The first report titled Attracting Global Mandates: Summary and Recommendations by Paul Boothe can be found at: /media/2282920/attracting-global-mandates-summary-and-recommendations.pdf.
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About the Lawrence National Centre for Policy and Management
The Lawrence National Centre for Policy and Management bridges business strategy and government policy to contribute to Canada’s global competitiveness. The Centre educates future business leaders in public policy and government leaders in business strategy and conducts leading-edge research on major issues that involve business-government coordination. www.ivey.uwo.ca/lawrencecentre
About the Ivey Business School, Western University
The Ivey Business School (www.ivey.ca) at Western University is Canada’s leading provider of relevant, innovative and comprehensive business education. Drawing on extensive research and business experience, Ivey faculty provide the best classroom experience, equipping graduates with the skills and capabilities they need to tackle the leadership challenges in today’s complex business world. Ivey offers world-renowned undergraduate and graduate degree programs as well as Executive Education at campuses in London (Ontario), Toronto and Hong Kong.
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