Both developing and transition countries benefit from the presence of foreign direct investments. The existence of FDI within their environment helps boost local productivity growth significantly. Rich country’s investment policies that are development-friendly are ranked through the Commitment to Development Index. FDI in China sees significant increase in last decade. At $19.1 billion just in the first half of 2012, China becomes the FDI recipient in the world. This number far exceeds that of the US, which was $17.4 billion. The number increased in 2013, at $24.1 billion, making up 34.7% of total market share of FDI in the region of Asia-Pacific.
FDI in Chia fell down a bit during the global financial crisis in 2009 but the number returned back to the top the next year. In India, FDI was brought in under FEMA (Foreign Exchange Management Act) in 1991. India is regarded as the second most important country to direct FDI. Industry sectors that attract FDI into India include computer software and hardware, construction activities, telecommunication, and services. Investments come from mainly the UK, the US Singapore and Mauritius. By 2015, India has surpassed China and the US as the leading FDI destination.
In the US, FDI receives relatively low level of resistance. In 2010, the total amount of FDI in the US was $194 billion, which came primarily from Canada, the Netherlands, Luxemburg, Germany, France, Japan, the UK, and Switzerland. Industry sector that receives most investments is real estate with a total of $92.2 billion in 2013 alone. In Canada, FDI made CAD$634 billion in 2012, far beyond the US in this regard. The UK, meanwhile, has a market that is very open toward foreign investment. The skyscraper, The Shard, was built in a project funded through a foreign direct investment and serves as a perfect example of the application of FDI.