World Investment Report 2011: Non-Equity Modes of International Production and Development

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This document examines trends in FDI flows.  It notes that global value chains are an important way in which non-equity modes (NEMs) of production (contract manufacturing, etc.) are organized and that policy-makers should better understand the role of GVCs in development.  The report presents some recommendations for how governments can leverage NEMs for economic development, including through productive capacity-building (human capital, technology, finance), promoting NEMs (legal and policy frameworks) and addressing the negative effects of NEMs (strengthening domestic bargaining power, competition issues, labor and environment).  It also includes FDI trends by region as well as FDI trends in structurally weak economies.

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