Development finance standards

Non-ODA flows to developing countries: Foreign Direct Investment


Foreign Direct Investment can provide financial stability and promote sustainable development.

Foreign direct investment (FDI) can provide financial stability, promote economic development and enhance the well-being of societies. Building on the 2002 Monterrey Consensus on Financing for Development, the 2015 Addis Ababa Action Agenda on Financing for Development re-insists foreign direct investment (FDI), along with a stable international financial system, is vital complement to national development efforts. FDI is also considered as one of the most development-friendly sources of investment, as it can create jobs, develop technology and new productive capacity, and help local firms access new international markets.

Over the past two decades, developing countries have steadily increased their share of global foreign direct investment receipts. FDI currently represents one of the biggest sources of developing countries' external financing. Involving long-term relationship and reflecting a lasting interest, it is often viewed as a stable source of private international investment.



FDI as an external finance source to developing countries

Non-ODA flows ALL




Putting foreign direct investment to work for development,
Development Co-operation Report 2014

OECD Benchmark definition of FDI

An overview of foreign direct investment concepts

Financial instruments related to foreign direct investments



Current DAC work to improve the picture of Foreign Direct Investment (FDI) to developing countries

The DAC Working Party on Development Finance Statistics and the Investment Committee Working Group on International Investment Statistics (WGIIS) have been working together to explore the feasibility of streamlining OECD databases on FDI. If successful, DAC statistics on FDI would be derived from the WGIIS system.  


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