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FOREIGN INVESTMENT SLACK IN POOR NATIONS

Foreign direct investment in all nations rose about three times as fast as the world economy over the last decade.Despite this rapid growth, the share of investment in plant, equipment, and offices going to developing countries has declined, notes a report by the Multilateral Investment Guarantee Agency, an affiliate of the World Bank. The report blames increasing protectionism in industrial nations as the single most important policy hampering the flow of foreign direct investment into developing countries.