Foreign direct investment, regional change and poverty : identifying Norwegian controlled FDI in developing countries

Abstract

This report discusses the role of the involvement of multi-national companies in development and poverty reduction strategies, by identifying Norwegian controlled FDI in developing countries. The first part of the report reviews FDI literature discussing the relation between FDI, regional change and poverty. This is followed by an investigation of existing data on Norwegian FDI in developing countries, and a survey of Norwegian FDI at firm level. The portion and magnitude of investments in developing countries is discussed by combining existing data on Norwegian FDI and data from the survey. In addition, the survey maps motives behind Norwegian FDI in Developing countries; how these investments take place; and preliminary regional effects of these investments. It is evident that to employ FDI as a poverty reducing strategy, it is important to be aware that different FDI characteristics and local conditions yield different outcomes. As a venue for further study, there is a need for knowledge on what these characteristics are and how policy initiatives can improve the outcome of FDI. This must be established through case studies.