This report is part of a series of activities under The Canada Project, a three-year program of balanced and rigorous research and facilitated dialogue that will help to improve our standard of living and our position in North America and the world. Income per capita, a measure of standard of living, is significantly lower in Canada than in the United States, primarily due to productivity differences. Research shows that foreign direct investment can boost the productivity of host countries. Consequently, attracting foreign direct investment into Canada could help address our productivity gap.
The objectives of this report are to examine the trends in global foreign direct investment, analyze why Canada's share of inward foreign direct investment has declined substantially over the last couple of decades, and suggest ways to reverse that trend. The report looks at what motivates multinational enterprises to invest in foreign countries. It then assesses Canada's current and potential comparative advantages as an investment destination and outlines actions that could be taken to build on these advantages.