Feature Article - FACTBase Bulletin 65 - Investment and Trade: Drilling Down into Our Global Attractiveness

Published:

FACTBase Bulletin 65 provides important economic context to the Hashtag Perth project, reporting on the state of foreign direct investment (FDI) in Australia and the investment attractiveness of Western Australia.

Foreign direct investment is a measure of national attractiveness and the competitiveness of its industry in the context of the global market. Moreover, FDI is a key means by which various sectors measure national success. From 2001 onwards, both inward and outward FDI has steadily increased in Australia.

The most recent resources boom generated significant growth in FDI during the 2003-2007 period, followed by a slight downturn from 2007-2009 as a result of the global financial crisis (GFC). In 2018, Australia’s inward FDI reached a record AU$967 billion.

Drilling down into the figures, the mining and quarrying sector has consistently attracted the largest share of FDI in Australia (37.8%). As WA has a strong resources sector, the State will continue to attract high levels of FDI, particularly as WA gears up for another production and infrastructure boom.

The Bulletin suggests a note of caution, however, and warns against failing to implement appropriate economic development policy and strategy. All actions should be taken to avoid an overheating of the economy in which resource wealth is unevenly distributed, negatively impacting structural inequality.


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