DPU Working Paper - No. 142
The Effects of Foreign Direct Investment in Urban Development: The Case of Budapest
6 December 2010
Author: Julia Maurer
Publication Date: 2010
Foreign direct investment (FDI) and its executing executive, the transnational corporations (TNCs), are an inherent part of global capitalism. In 2007, an estimated FDI volume of US$ 1.5 trillion was reached with the expectations of further growth after a short decline due to the economic crisis. The World Bank considers this growth to be demand driven with the emerging economies being a major source for this demand (MIGA 2008). Although most of FDI is flowing between developed countries, the share of inward FDI to developing countries is increasing with a faster pace. In particular, the countries of South, East and South-East Asia are steadily enhancing their position as FDI receivers with China and Hong Kong being the prime receivers in the region (UNCTAD 2008).