1 United Nations Conference on Trade and Development, World Investment Report 2003 (New York: UNCTAD, 2003). All currency values in $ U.S., unless specified otherwise.
2 FDI stocks are "cumulative" FDI annual flows. UNCTAD, World Investment Report 2003, p. 244.
3 Industry Canada, Trade and Investment Monitor 2003 (Ottawa: Industry Canada, 2003), p. 44.
4 Ibid., p. 47.
5 Organisation for Economic Co-operation and Development, Trends and Recent Developments in Foreign Direct Investment (Paris: OECD, June 2003), p. 5.
6 Alex Easson, Taxation of Foreign Direct Investment: An Introduction (London: Kluwer Law International, 1999).
7 Someshwar Rao and Jianmin Tang, Contribution of Transnational Corporations to Canada ' s Competitiveness, draft (Ottawa: Industry Canada, Mar. 1, 2004).
8 However, the empirical evidence on spillovers is mixed. A recent survey shows strong evidence pointing to potentially significant spillover benefits from FDI, but it also provides ample evidence indicating that spillovers do not occur automatically. Most importantly, they depend on the ability and motivation of local firms in learning and absorbing the foreign knowledge and skills. See Magnus Blomstrom, Ari Kokko and Mario Zejan, Foreign Direct Investment: Firm and Host Country Strategies (London: Macmillan, 2000).
9 Among the developed countries, which provide about 85 per cent of FDI outflows, restrictions on capital movements have now been almost entirely eliminated by the OECD liberalization codes and by European Commission directives. Capital export restrictions, however, remain fairly common in less-developed countries. See UNCTAD, World Investment Report 1995 (New York: UNCTAD, 1995).
10 OECD, Open Markets Matter: The Benefits of Trade and Investment Liberalization (Paris: OECD, 1998).
11 " The evidence indicates that foreign investment abroad stimulates the growth of exports from originating countries (investing countries) and, consequently, that this investment is complementary to trade. Analysis of 14 countries demonstrated that each dollar of outward FDI produces about two dollars ' worth of additional exports. . . . Conversely, in host countries, short-term foreign investment most often tends to increase imports, whereas an increase in exports appears only in the longer term. However, in the short term, host countries enjoy many benefits from foreign investment (technology transfers, job creation, local subcontracting, etc.). " Lionel Fontagne, Foreign Direct Investment and International Trade: Complements or Substitutes? STI Working Paper 1999/3, OECD Directorate for Science, Technology and Industry (Paris: OECD, 1999), p. 5.
12 For example, the value of royalties and licence fees from service exports increased more than fivefold between 1995 and 2002. Industry Canada, Trade and Investment Monitor 2003, p. 34.