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Business and Economic Update
Issue 02

Share of FDI in total investments and GDP

While the numbers in table 2 above can somehow give us an idea of the share of domestic capital to total investments among countries, the table below will provide a more definite figures how much are FDIs over Gross Fixed Capital Foundation (GFCF) or gross domestic investments. For instance, it is interesting to see how Germany and Japan have very small share of FDI/GFCF in 2014. This would somehow give an idea of how protectionist they are in the services sector.

The most open economies to global trade and investments, Hong Kong and Singapore, have the highest FDI/GFCF. And an FDI share of 2.5 to 14 percent seem to be the average, possibly a healthy mixture, including the 10.5 percent for the Philippines.

Table 3. FDI inflows as percent of gross fixed capital formation.
FDI inflows as percent of gross fixed capital formation$

In terms of FDI stock as a share of an economy’s gross domestic product (GDP), small territory but open and big economies Singapore and Hong Kong are the run-away leaders again with very high ratio of almost 300 and 535 percent share.

The Philippines’ 20 percent level is the lowest in the ASEAN in 2014, but it is not something to commiserate as other The Philippines’ 20 percent level is the lowest in the ASEAN in 2014, but it is not something to commiserate as other industrialized and emerging economies like Germany, Italy, Japan, Taiwan, S. Korea, China and India have levels lower than 20 percent.

Table 4. FDI inward stock as percent of GDP
FDI inward stock as percent of GDP

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