By now it is well recognised that FDI can significantly benefit the economy of the host country and this may be the reason that governments of many countries around the globe formulate strategies that attract foreign direct investment in their countries. In addition to the direct capital financing, FDI can benefit the host country through technology spill overs, human capital formation, creation of competitive business environment, enterprise development and integration of international trade. Many international institutions, politicians and economists consider Foreign Direct Investment as a major tool of the economic growth of a country as well as the solution of economic issues. Foreign Direct investment plays a major role in the economic expansion when there is a shortage of domestic savings.
With a long-term investment horizon, these investors have great potential to contribute to sustainable development through investment in relevant sectors, such as infrastructure, agriculture and healthcare. However, only a small portion of the available 'reservoir' is currently dedicated to direct investment and many developing countries, in particular those in Africa, are still largely absent from the portfolio of these funds.
At this high-level Round Table, policy makers, executives of SWFs and public pension funds and investment experts examined opportunities and challenges for mobilizing more investment by sovereign wealth and public pension funds in SDG sectors, and how governments and sovereign and public investors can work together to facilitate these investments and magnify their contributions to sustainable development.
Elements for the debate Session 1: Opportunities and challenges What are the emerging trends of direct investment by sovereign investors? What opportunities can developing economies offer for sovereign investors in pro-development investment? What barriers curb sovereign investors' appetite for long-term investments in these regions?
Innovative schemes and tools What schemes and tools can be used to leverage long-term investment by sovereign investors?
What risk-sharing schemes could be available to alleviate key concerns of sovereign investors for long-term investment? Role of host countries What policy measures can host countries adopt to address the barriers faced by sovereign investors?
How can governments better prepare bankable projects for sovereign investors? How can governments and sovereign investors work together to maximize the development benefits of sovereign investment while minimizing potential risks and negative impacts?
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· Durowah, Olivia, "The Role of Aid for Trade and Foreign Direct Investment in Poverty Reduction: A Panel Data Analysis of 91 Developing Countries" (). The empirical analyses indicate that AFT flows have a robust and positive considering the significant FDI inflows to developing countries and their pfmlures.com?article=&context=etd.
· population, income and FDI inflows for a number of the largest Chinese cities in Cities in coastal provinces generally have higher income levels than inland cities (15 of the 17 cities with income above $3, are located in eastern regions), especially in somepfmlures.com