Global flows of foreign direct investment (FDI) have been declining for several years, well before the pandemic hit in early 2020. While these flows can be cyclical, as with any other type of investment, they have been falling both in absolute amounts and relative to overall GDP for several years, causing many to wonder whether there has been a structural change in the global economy. OECD’s Stephen Thomsen takes a look at this worrying trend and at what governments can do about it.
Category: Globalisation
Making investment work for green growth
Foreign direct investment (FDI) that fosters green growth and development while preserving natural assets will make a key contribution to efforts to curb climate change and achieve the SDGs. In the run-up to COP26, the OECD’s Iris Mantovani explores the contribution of FDI to lowering carbon emissions and advancing green growth.
How effective are FX reserve requirements in the monetary policy toolkit?
Emerging markets have increasingly been using macroprudential policy to mitigate risks from high currency exposures in both banks’ and firms’ balance sheets. One widely-used tool is foreign exchange (FX)-differentiated reserve requirements.
The Appropriate Financial Policy Toolkit in an Integrated World
Since the Global Financial Crisis, challenges related to capital flow management and financial stability have evolved, leading policymakers to broaden the policy toolkit available to deal with those challenges. In this context, the time was ripe for a review of the OECD Code of Liberalisation of Capital Movements, the only multilateral agreement covering the full capital account. The updated Code was adopted by OECD Ministers in May 2019 and launched at the G20 Finance meeting in Fukuoka. It is not only more flexible, to better deal with current financial stability requirements, but it also makes an important contribution to the global debate on the international financial architecture.
Taking up the due diligence challenge in garment and footwear supply chains
Responsible supply chain management in the garment and footwear sector is a tough challenge for global companies. OECD's Juliet Lawal looks at how OECD guidance and implementation processes can help.
The business of promoting investment
Governments count on their Investment Promotion Agencies (IPAs) to attract international investment but relatively little is known about how they go about this. Alexandre de Crombrugghe shares some of the insights gained during a stocktaking of IPAs in OECD countries.
How to make infrastructure investment work for all
With citizens, communities and politicians increasingly questioning the benefits of globalisation and the multilateral trading system, the OECD's Greg Medcraft looks at what we can do to ensure foreign infrastructure investment is high quality, sustainable and works for all, with particular reference to China’s Belt and Road Initiative.
Do competition authorities need to transform themselves in a digitally transformed world?
The digital revolution affecting economies and societies cuts across multiple areas of government policy. In this Competition Lore podcast, Caron Beaton-Wells engages the OECD's Antonio Gomes in a wide ranging conversation about the challenges and opportunities competition authorities are facing as they grapple with the digital transformation of markets.
Staying ahead of the curve on corporate responsibility: Indigenous peoples’ rights, taxation and disclosure
In the fourth post of his Legacy Blog Series, Roel Nieuwenkamp encourages the responsible business conduct community to start planning for the next update of the OECD Guidelines for Multinational Enterprises.
Responsible business @OECD: Plain language please!
In the second post of his Legacy Blog Series, Roel Nieuwenkamp makes a plea for the use of plain language to help advance the responsible business conduct agenda.