ABSTRACT
Foreign Direct Investment (FDI) inflows and outflows to and from OECD countries have showed continuing rapid growth. Inward investment into OECD countries has grown by 35% and reached US dollars (USD) 684 billion, while outflows have showed an increase of 22% and amounted to USD 768 billion. Some OECD countries have experienced an unprecedented level of inflows (for instance, Japan, Sweden and Germany) and others have recorded historically high outflows (for instance, Denmark, France and Ireland). The increase in investment flows was significant in 1990s, but it was by far exceeded by the growth in mergers and acquisitions (M&A). As in previous years, M&A was the primary vehicle behind the increase in FDI. Last year, Western Europe was the world’s leading region for cross-border M&A. The 1990s brought considerable improvements in the investment climate, influenced in part by the recognition of the benefits of FDI.
