REGIONAL VARIATIONS IN FOREIGN DIRECT INVESTMENT FLOWS TO DEVELOPING COUNTRIES: A TRI-CONTINENTAL COMPARATIVE STUDY

Authors

  • Ergasheva Maftuna Asad qizi University of World Economy and Diplomacy Master degree student

DOI:

https://doi.org/10.55640/

Keywords:

Foreign Direct Investment, Developing Countries, Regional Analysis, Investment Flows, Comparative Study, Economic Development, Asia, Africa, Latin America

Abstract

This study analyzes Foreign Direct Investment (FDI) flows to developing countries across Asia, Africa, and Latin America from 2010 to 2024. Using data from UNCTAD, World Bank, and regional development banks, we examine twelve representative countries from each region. Results show Asian developing countries received the highest FDI inflows (averaging $650 billion annually), followed by Latin America ($185 billion) and Africa ($85 billion). Key determinants vary by region: market size and manufacturing capacity drive Asian FDI, natural resources and regional integration influence Latin American flows, while resource extraction and infrastructure needs dominate African patterns. The findings provide insights for policymakers seeking to enhance investment attraction strategies.

References

1.African Development Bank. (2023). African Economic Outlook 2023: Mobilizing Private Sector Financing for Climate and Green Growth in Africa. Abidjan: AfDB Publications.

https://www.afdb.org/en/documents/african-economic-outlook-2023

2.Amendolagine, V., Boly, A., Coniglio, N. D., Prota, F., & Seric, A. (2013). FDI and local linkages in developing countries: Evidence from sub-Saharan Africa. World Development, 50, 41-56. https://doi.org/10.1016/j.worlddev.2013.05.009

3.Asian Development Bank. (2018). Foreign Direct Investment in Developing Asia: Trends, Effects, and Likely Issues for the Forthcoming WTO Negotiations. Manila: ADB Publications. https://www.adb.org/publications/foreign-direct-investment-developing-asia-trends-effects-and-likely-issues-forthcoming

4.Carril-Caccia, F., & Pavlova, E. (2018). Foreign direct investment and its drivers: A global and EU perspective. ECB Economic Bulletin, 4, 60-78.

5.European Bank for Reconstruction and Development. (2020). Transition Report 2020-21: The State of Transition. London: EBRD. https://www.ebrd.com/transition-report

6.Hornstein, A. S. (2024). Economic growth and foreign direct investment in Asia: When investors imperfectly fulfil approved investment plans. Asia and the Global Economy, 4(2), 100093.

https://www.sciencedirect.com/science/article/pii/S2667111524000173

7.Inter-American Development Bank. (2023). Foreign Direct Investment in Latin America and the Caribbean 2023. Washington, DC: IDB Publications. https://www.iadb.org/en/research-and-data/home

8.International Monetary Fund. (2023). World Economic Outlook Database, October 2023. Washington, DC: IMF Publications. https://www.imf.org/en/Publications/WEO/weo-database/2023/October

9.Loots, E., & Kabundi, A. (2012). Foreign direct investment to Africa: Trends, dynamics and challenges. South African Journal of Economic and Management Sciences (SAJEMS), 15(2), 128-141. https://doi.org/10.4102/sajems.v15i2.148

10.Syarifuddin, F. (2022). The dynamics of foreign direct investment and exchange rates: An interconnection approach in ASEAN. Cogent Economics & Finance, 10(1), 2058156. https://doi.org/10.1080/23322039.2022.2058156

11.UNCTAD. (2024). World Investment Report 2024: Investment Facilitation and Digital Government. Geneva: United Nations Conference on Trade and Development. https://unctad.org/publication/world-investment-report-2024

12.United Nations Industrial Development Organization. (2023). Industrial Development Report 2024: Climate Action through Industry. Vienna: UNIDO Publications.https://www.unido.org/resources-publications-flagship-publications-industrial-development-report-series

13.Williams, K. (2015). Foreign direct investment in Latin America and the Caribbean: An empirical analysis. Latin American Journal of Economics, 52(1), 57-77. https://doi.org/10.7764/LAJE.52.1.57

14.World Bank. (2024). World Development Indicators Database. Washington, DC: World Bank Group. https://databank.worldbank.org/source/world-development-indicators

15.World Bank. (2024). Worldwide Governance Indicators 2024 Update. Washington, DC: World Bank Group

https://info.worldbank.org/governance/wgi/

16.Asian Development Bank. Key Indicators for Asia and the Pacific.

https://www.adb.org/publications/series/key-indicators-for-asia-and-the-pacific

17.UNCTAD. UNCTADstat Data Centre. https://unctadstat.unctad.org/

18.World Bank. Foreign Direct Investment Database.

https://data.worldbank.org/indicator/BX.KLT.DINV.CD.WD

Downloads

Published

2025-08-26

How to Cite

REGIONAL VARIATIONS IN FOREIGN DIRECT INVESTMENT FLOWS TO DEVELOPING COUNTRIES: A TRI-CONTINENTAL COMPARATIVE STUDY. (2025). International Journal of Political Sciences and Economics, 4(08), 101-113. https://doi.org/10.55640/

Similar Articles

1-10 of 729

You may also start an advanced similarity search for this article.