Main menu For students For teachers Explore our subjects Student events & courses

Explore

More for students
Sign in

Free Economics resources

Study Notes

Foreign Direct Investment in the Global Economy

Level:
A-Level, IB Diploma
Board:
AQA, Edexcel, Eduqas, IB, OCR, WJEC

Last updated 1 Feb 2019

Share this content:

Many countries rely on inflows of foreign direct investment (FDI) as a key source of aggregate demand and also as a driver of real economic growth. In 2017, total foreign direct investment was $1.43 trillion globally.

Developed economies

  • FDI Inflows: $712.4 billion
  • FDI Outflows: $1,009.2 billion

Developing economies

  • FDI Inflows: $670.7 billion
  • FDI Outflows: $380.8 billion

Google public data on net foreign direct investment measured as a % of a nation's GDP (Source, World Bank)

Google public data on net flows of foreign direct investment (measured as a % of GDP)

Why is China pouring money into Africa?
Share this content:

You might also like

Introduction to Macroeconomics: Economic Growth

25th August 2026

In the News Teaching Activity – Can the UK afford a big rise in defence spending? (July 2026)

13th July 2026

In the News Teaching Activity – What key economic challenges will a new PM face? (June 2026)

29th June 2026

In the News Teaching Activity – How has the vote to Brexit 10 years ago affected the economy? (June 2026)

15th June 2026

In the News Teaching Activity – Good news on UK growth, but will it last? (May 2026)

25th May 2026

In the News Teaching Activity – How might reducing immigration affect growth in the UK? (May 2026)

11th May 2026

Macro Case Study: India's development

Topical case studies

In the News Teaching Activity – Could the UK economy tip into recession? (Mar 2026)

23rd March 2026