World Investment Report 2001: Promoting linkages

United Nations Conference on Trade and Development

No 11, World Investment Report from United Nations Conference on Trade and Development

Abstract: The 2001 Report analyses the role of linkages between foreign affiliates of multinational enterprises and domestic firms in developing countries. It examines how foreign direct investment contributes to development through the transfer of knowledge, technology, skills and managerial practices. Particular attention is given to supplier relationships, subcontracting arrangements and other forms of business interaction that can strengthen domestic productive capacities. The Report evaluates factors influencing the creation and quality of linkages and assesses policy measures that can enhance their developmental impact. It considers the experiences of countries and enterprises that have successfully integrated domestic firms into international production networks and identifies constraints that may limit these benefits. The analysis highlights the importance of fostering linkages as a means of improving competitiveness, productivity and long-term economic growth.

Date: 2001
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