The Role of Canada’s Major Cities in Attracting Foreign Direct Investment

The Conference Board of Canada, 60 pages, May 17, 2012
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Given the key role that Canada’s Consider Canada City Alliance (CCCA) cities play in attracting foreign direct investment, a coordinated CCCA effort to attract FDI would benefit not only its members, but Canada as a whole.

Document Highlights

  • Canada’s CCCA cities play a key role in attracting inward foreign direct investment (FDI).
  • Although most analysis of FDI is conducted at the national level, the lion’s share of global investment activity flows through the world’s cities.
  • Canada’s cities deserve a seat at the table with their national and provincial counterparts when policies and strategies to attract FDI are being developed, as both city-level economic development efforts and provincial and national investment promotion activities are needed.
  • To attract more FDI, improvements in physical infrastructure and the labour market could be achieved by investing in cities and in the people who live and work there.
  • A coordinated CCCA effort to attract FDI would benefit not only its members, but Canada as a whole.

Table of Contents

Executive Summary

Chapter 1—Introduction

Chapter 2—Foreign Direct Investment: Concepts and Determinants

  • What Is FDI?
  • Determinants of FDI

Chapter 3—Global and Canadian FDI Trends

  • Global FDI Trends
  • Canadian FDI Trends

Chapter 4—Economic Benefits and Impact of FDI

  • Economic Benefits of FDI
  • Channels of Transmission of FDI Spillovers to Domestic Firms
  • Economic Impact of FDI

Chapter 5—The Increasing Importance of Cities

  • Why Cities Are Becoming More Important
  • Canada’s Urban Regions
  • Canadian Cities’ Future Prosperity at Risk From Underfunding

Chapter 6—FDI and Cities

  • Cities and FDI Determinants
  • Local FDI Estimates
  • Implications

Chapter 7—Strategies to Attract FDI

  • Best Practices to Attract FDI
  • Investment Promotion Agencies
  • Policy Advocacy—What Policies?
  • Local FDI Policy Attraction

Chapter 8—Conclusion

Appendix A—Canada’s Hub Cities Study: An Update

  • Methodology
  • Determining the Canadian and Provincial Leaders
  • Testing for Pan-Canadian Convergence
  • Testing for Intraprovincial Convergence
  • Why Is Pan-Canadian Convergence Generally Slower than Intraprovincial Convergence?
  • Implications

Appendix B—Bibliography

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