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World Investment Report 1996

Investment, Trade and International Policy Arrangements

image of World Investment Report 1996

Worldwide foreign direct investment (FDI) inflows increased phenomenally between 1994 and 1995, setting a new record. This surge in FDI inflows is one of the many vital topics examined in this year's edition of the Report. It also analyzes the interrelationships between trade, investment and international policy arrangements; scrutinizes policy issues and examines the factors underlying new developments. This Report is an essential reference.

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Introduction

As the analysis of the previous chapters indicates, foreign direct investment (FDI) and trade are inextricably intertwined both at the microeconomic level of firms’ strategies and operations and at the macroeconomic level of national economies. Investment and trade not only contribute individually and directly to development, they also contribute jointly and indirectly through linkages with one another. Governments have therefore increasingly established national policy frameworks to create a framework within which FDI and trade can flourish and contribute to growth and development. Beyond that, they are beginning to pay more attention, at the national level, to the need for policy coordination between investment and trade policies.

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