Relationships between trade and FDI flows within two panels of US and French industries LIONEL FONTAGN ´E ANDMICHA ¨E L PAJOT

A good measure of the magnitude of globalization is the ratio of international to domestic investment (Table 3.1). On average, this ratio has been stable in the recent period for developed economies, even for outward flows, with the exception of USA and France. In the UK, outward FDI accounts for one-fifth of domestic investment. In contrast, the increase is very sharp for developing countries, noticeably for Central Europe where one-fifth of domestic investment is inward FDI.