From a development perspective, FDI is more than a flow of capital
that can stimulate economic growth. It comprises a package of assets
that includes long-term capital, technology, market access, skills and
know-how (WIR99). As such, it can contribute to sustainable development
by providing financial resources where such resources are often scarce;
generating employment (WIR94); strengthening export capacities
(WIR02); transferring skills and disseminating technology; adding to GDP
through investment and value added, both directly and indirectly; and
generating fiscal revenues (WIR15). In addition, FDI can support industrial
diversification and upgrading, or the upgrading of agricultural productivity
(WIR09) and the build up of productive capacity, including infrastructure
(WIR08). Importantly, it can contribute to local enterprise development
through linkages with suppliers (WIR01) and by providing access to
GVCs (WIR13) – the growing importance of GVCs can have an important
pro-poor dynamic to the extent that marginalized communities and small
suppliers can integrate into global or regional value chains as producers,
suppliers or providers of goods and services.