World Investment Report 2005—Transnational Corporations and the Internationalization of R&D

Led by developing countries, global FDI flows resumed growth in 2004... O ACCOUNT of a strong increase in foreign direct investment (FDI) flows to developing countries, 2004 saw a slight rebound in global FDI after three years of declining flows. At $648 billion, world FDI inflows were 2 per cent higher in 2004 than in 2003. Inflows to developing countries surged by 40 per cent, to $233 billion, but developed countries as a group experienced a 14 per cent drop in their inward FDI. As a result, the share of developing countries in world FDI inflows was 36 per cent, the highest level since 1997. The United States retained its position as the number one recipient of FDI, followed by the United Kingdom and China.