FDI Environments and Policy Competitiveness of Asia Pacific Economies

Abstract

This study provides an assessment of FDI regimes on selected Asia-Pacific economies before the financial crisis, and then follows the changes of FDI policies after the crisis. For this purpose, this paper uses survey results on FDI environment for Asia Pacific economies and Individual Action Plans for FDI policies presented to APEC by member economies. There are wide differences in the inducement of FDI among different economies and regions. Different FDI regimes and policies seem to explain, at least to some extent, different performances of FDI Indices. Economies with high FDI index reflect highly liberalized FDI regimes. Economies, which have not made any necessary measures, showed significant decrease in their indices. This study examines the details of policy measures undertaken by Asia-Pacific countries. While many countries have taken various measures to improve their FDI environment, most of their actions are not directed to problematic areas of their FDI regimes which are identified in the survey. Countries have made numerous policy measures but they seem to have missed the target.