FDI UnpluggedLaws governing foreign direct investment have been changing in favour of more cross-country flows. A study of changes in FDI laws and regulations done by UNCTAD shows that most of the changes have been in the form of increased incentives, liberal working conditions and lesser control.In 1996, 138 changes in 114 measures were made in 65 countries. Of these, only 12 per cent were in form of reduced incentives and more control. The same trend has been seen since 1991.The number of countries which introduced changes in their investment regimes in turn have increased from 35 in 1991 to 64 in 1995. And in most, the direction of change was in favour of liberalisation.There has been a sharp increase in favour of increasing controls. From 6 measures in 1995 to 16 in 1996. But that could be a temporary phenomenon.
