The Economic Impact of U.S. Foreign Direct Investment on the Asia Pacific Region

TL;DRAbstract

FOREIGN direct "htvestment (FDI) flows to the de~el~pU;g co~ntnes have increased at a rapid rate'in recent years reaching an estimated US$38 billion in 1992; a four-fold increase since the mid-1980s (see Table 9.1).This reflects improv~d macroeconomic performance, a relaxed regulatory environment, and active privatisation-and debt conversion programmes irl many of these economies.The share ofFDI going into developing c~untries increased from ~ 10; p~~t ofless than 12 percent in 1987 to 22 percent in 1991 (see Table 9.1).FDI nowrepresents the dominant form of reSource flows to" the developing countries and the primary source of private capital fo; i~w-ii-tcome countries.'FDI flows into Asia and the Pacific region have been considerable, and have been particul~rlyirnporta~t for'the ~xPort-oriented manufacturing sector of the ec~nomy (see Tables 9.2 'and 9.3).For instance, in the Association of Southeast Asian (Asean) c~tintries, foreign firms account for more than 50, per"2ent ~f ~anufa~

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