Canada has lost its allure as a destination for foreign direct investment (FDI). This report offers insights into the global trends in FDI, the reasons for Canada’s poor performance and possible actions that Canadian governments can take to make this country more attractive for global direct investment.
Document Highlights
Canada has lost its allure as a destination for foreign direct investment (FDI), as multinational enterprises seek to improve their strategic advantages and efficiencies. While developed countries overall increased their share of the global stock of inward FDI over the past two decades, Canada’s share fell from 7.7 per cent in 1980 to 3.1 per cent in 2002.
Canada must do a better job of attracting FDI to improve its economic potential. Achieving that objective demands a better understanding of the trends in global direct investment and the factors affecting Canada’s ability to attract FDI.
This report offers insights into the global trends in FDI, the reasons for Canada’s poor performance and possible actions that Canadian governments and others can take to make this country more attractive for global direct investment. The findings are based on a literature review, data analysis, and a survey of and interviews with executives in multinational firms.
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