National and international policies

Preceding chapters of this WIR have shown that the volume, nature and impact of outward FDI are influenced by government policies in various ways. The patterns of FDI today reflect the particular institutional and policy context in which the investing firms have evolved and developed their ownership advantages. Some companies expanded internationally as a safeguard against local market volatility, while others ventured abroad when protection under the import-substitution era came to an end and they became exposed to international competition. In other cases, FDI has been the direct result of active encouragement by the home-country government. Moreover, some large outward investors are State-owned, reflecting the priorities and strategies of their owners.

Sustainable Development Goals:

Decent Work and Economic Growth