Does A Country Need A Promotion Agency To Attract Foreign Direct Investment

Author : Jacques Morisset
Publisher : World Bank Publications
Page : 28 pages
File Size : 51,6 Mb
Release : 2003
Category : Investment, Foreign
ISBN : 8210379456XXX

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Does a Country Need a Promotion Agency to Attract Foreign Direct Investment? by Jacques Morisset Pdf

Establishing an investment promotion agency has become a central part of most countries' development strategies. Today there are more than 150 investment promotion agencies worldwide. Yet very little is known about what these agencies have been really doing, notably in emerging countries, and whether they have been effective in influencing investors' decisions. Using data from a new survey on 58 countries, Morisset shows that greater investment promotion is associated with higher cross-country foreign direct investment (FDI) flows, on top of the influence of the country's investment climate and market size. But this result has to be qualified on several counts. First, the effectiveness of the agency depends on the country's environment in which it operates. An agency in a poor investment climate is less effective at attracting investment. Second, the scope of activities that an agency undertakes influences its performance. Morisset's empirical analysis indicates that agencies devoting more resources on policy advocacy are more effective because such activity is not only beneficial to foreign investors but also to domestic investors. In contrast, investment generation or targeting strategies appear expensive and risky, especially in countries with poor investment climates. Finally, certain internal characteristics of the agencies are associated with greater effectiveness. The agencies that have established reporting mechanisms to the country's highest policymakers (the president or prime minister) or to the private sector have been systematically more efficient at attracting foreign direct investment. Such institutional links are crucial because they contribute to strengthen the government's commitment as well as reinforce the agency's credibility and visibility in the business community.

Author : Jacques P. Morisset
Publisher : Unknown
Page : 23 pages
File Size : 46,7 Mb
Release : 2016
Category : Electronic
ISBN : OCLC:1290704195

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Does a Country Need a Promotion Agency to Attract Foreign Direct Investment? A Small Analytical Model Applied to 58 Countries by Jacques P. Morisset Pdf

Establishing an investment promotion agency has become a central part of most countries' development strategies. Today there are more than 150 investment promotion agencies worldwide. Yet very little is known about what these agencies have been really doing, notably in emerging countries, and whether they have been effective in influencing investors' decisions.Using data from a new survey on 58 countries, Morisset shows that greater investment promotion is associated with higher cross-country foreign direct investment (FDI) flows, on top of the influence of the country's investment climate and market size.But this result has to be qualified on several counts. First, the effectiveness of the agency depends on the country's environment in which it operates. An agency in a poor investment climate is less effective at attracting investment. Second, the scope of activities that an agency undertakes influences its performance. Morisset's empirical analysis indicates that agencies devoting more resources on policy advocacy are more effective because such activity is not only beneficial to foreign investors but also to domestic investors. In contrast, investment generation or targeting strategies appear expensive and risky, especially in countries with poor investment climates.Finally, certain internal characteristics of the agencies are associated with greater effectiveness. The agencies that have established reporting mechanisms to the country's highest policymakers (the president or prime minister) or to the private sector have been systematically more efficient at attracting foreign direct investment. Such institutional links are crucial because they contribute to strengthen the government's commitment as well as reinforce the agency's credibility and visibility in the business community.This paper - a product of the Foreign Investment Advisory Service - is part of a larger effort in the Bank to understand foreign direct investment flows.

Author : Louis T. Wells,Alvin G. Wint
Publisher : World Bank Publications
Page : 204 pages
File Size : 41,7 Mb
Release : 2000
Category : Business & Economics
ISBN : UCSD:31822028770691

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Marketing a Country by Louis T. Wells,Alvin G. Wint Pdf

The Foreign Investment Advisory Service, a joint facility of the International Finance Corporation (IFC) and the World Bank, was established to help governments of developing member countries to review and adjust the policies, institutions, and programmes that affect foreign direct investment (FDI). The ultimate purpose of FIAS is to assist member governments to attract beneficial foreign private capital, technology, and managerial expertise.

Author : Jacques Morisset,Kelly Andrews-Johnson
Publisher : World Bank Publications
Page : 130 pages
File Size : 44,7 Mb
Release : 2004
Category : Business & Economics
ISBN : 0821356062

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The Effectiveness of Promotion Agencies at Attracting Foreign Direct Investment by Jacques Morisset,Kelly Andrews-Johnson Pdf

Investment promotion agencies (IPAs) exist in almost all countries around the world, but there has been no global attempt to determine whether they have been able to significantly influence the investor's decision to locate in one country rather than another. 'The Effectiveness of Promotion Agencies at Attracting Foreign Direct Investment' is the first empirical study of the effectiveness of these agencies in attracting foreign direct investment (FDI).This study finds that promotion is unambiguously associated with greater FDI flows. The effectiveness of promotion, however, depends on: • the quality of the investment climate, market size • the level of development of the country • the IPA's budget and type of activities it carries out • communication with the highest level of policymakers and support from the private sector. An important resource, 'The Effectiveness of Promotion Agencies at Attracting Foreign Direct Investment' provides many lessons about how to carry out effective investment promotion.

Author : Christian Volpe Martincus,Monika Sztajerowska
Publisher : Inter-American Development Bank
Page : 173 pages
File Size : 49,6 Mb
Release : 2019-07-08
Category : Business & Economics
ISBN : 8210379456XXX

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How to Solve the Investment Promotion Puzzle by Christian Volpe Martincus,Monika Sztajerowska Pdf

The investment promotion puzzle remains unsolved. Nearly every country in the world has established an investment promotion agency (IPA) to attract and retain foreign direct investment (FDI) in both greater quantities and of higher “quality.” Meanwhile, the literature has been virtually silent on investment promotion and its effects on FDI. As a result, we know little about what such agencies look like in different countries, what they do, how they do it, and whether and to what extent they make a difference. How to Solve An Investment Promotion Puzzle aims to fill in this gap by providing detailed information on the organization, functions and activities, and operational modalities of IPAs across over 50 countries in LAC and OECD, distilling similarities and differences and creating a new basis for peer-to-peer benchmarking and analysis of their impact. As such, it can serve as a useful guide to professionals and policymakers interested in designing better policies for FDI.

Author : Osmel Manzano,Sebastián Auguste,Laura Alfaro,Daniel Artana,Adolfo Taylhardat,Mario Cuevas,Luis Porto
Publisher : Inter-American Development Bank
Page : 304 pages
File Size : 40,6 Mb
Release : 2015-02-01
Category : Business & Economics
ISBN : 9781597822084

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Partners or Creditors? Attracting Foreign Investment and Productive Development to Central America and Dominican Republic by Osmel Manzano,Sebastián Auguste,Laura Alfaro,Daniel Artana,Adolfo Taylhardat,Mario Cuevas,Luis Porto Pdf

Promotion of foreign direct investment (FDI) has been a priority policy goal in Central America, Panama and Dominican Republic for the past twenty years. Fiscal benefits are among the policies that have been used to attract it. At first sight the model followed has been fruitful. In 2013 the eight countries of the region succeeded in attracting US$ 12.7 billion, the highest level of FDI in their history. But there are question marks about how FDI will perform in future and what the incentives to promote it should be now that World Trade Organization rules on the instruments used to promote FDI in the region have changed. The present book analyzes this situation in depth. Firstly, it reviews the importance of FDI in the region as a source of financing for the external deficit. Then it reviews the findings of international economic research on the impact of FDI on growth and the factors that attract it. It highlights that far from being assured, the benefits of FDI depend on complementary factors which are often not present in the region. Subsequently the book analyzes the international evolution of FDI and the growing importance of multinationals of Latin origin. It then tackles the controversial question of the efficacy of fiscal incentives as a means to attract investment, following an innovative technical approach based on firm level data which questions whether the free zones have had a net positive impact on development. This analysis is complemented by a study of investment promotion policies, which focuses particularly on the Investment Promotion Agencies. Finally, the book outlines the prospects for FDI attraction now the sun has set on strategies based on providing fiscal incentives. It argues that a new strategy should be based on the creation of new skills and capacities through instruments designed to complement productive development policies and thereby generate positive spillovers in the economy.

Author : Organisation for Economic Co-operation and Development
Publisher : OECD
Page : 118 pages
File Size : 48,9 Mb
Release : 1993
Category : Capital investments
ISBN : STANFORD:36105008908670

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Promoting Foreign Direct Investment in Developing Countries by Organisation for Economic Co-operation and Development Pdf

Author : Multilateral Investment Guarantee Agency
Publisher : World Bank Publications
Page : 6 pages
File Size : 45,6 Mb
Release : 2001
Category : Business & Economics
ISBN : 0821349333

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Investment Promotion Toolkit by Multilateral Investment Guarantee Agency Pdf

The Multilateral Investment Guarantee Agency (MIGA; a member of the World Bank Group) is pleased to announce its latest initiative to empower investment promotion programs worldwide—the 'Investment Promotion Toolkit'. The toolkit is a comprehensive compilation of international best practices in investment promotion, and aims to assist national and local investment intermediaries to attract and retain foreign direct investment. The toolkit represents first-hand insights gained during MIGA's 12 years of investment experience in over 150 emerging economies and developing countries worldwide.This new resource forms the foundation for delivery of MIGA's technical assistance services and provides a valuable reference tool for sustaining investment initiatives after completion of MIGA's formal capacity-building work. Is is also available for purchase by any organization that wishes to promote foreign direct investment.The toolkit is designed for use by a broad range of investment intermediaries, including investment promotion agencies, consulting firms, sectoral ministries, international development agencies, and economic development agencies at the national, state, and local levels. It consists of nine discrete modules covering all basic functions of investment promotion:Module 1. Understanding foreign direct investment Module 2. Developing an investment promotion agency Module 3. Creating an investment promotion strategy Module 4. Building effective partnerships Module 5. Strengthening the location's image Module 6. Targeting and generating investment opportunities Module 7. Servicing investors Module 8. Monitoring and evaluating activities and results Module 9. Utilizing information technology

Author : Dale R. Weigel
Publisher : World Bank Publications
Page : 132 pages
File Size : 49,7 Mb
Release : 1997-01-01
Category : Business & Economics
ISBN : 0821340506

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Foreign Direct Investment by Dale R. Weigel Pdf

The report reviews lessons from the International Finance Corporation's (IFC) investment, and advisory experience in the developing world, which show the interactions between policy frameworks, and the volume and structure of foreign direct investments (FDI). Case studies show how the Corporation promotes successful project structures, and regulatory changes, as it tries to attain the strongest development impact for investments. In developing countries, FDI has flowed mainly into manufacturing, and processing industries. In the past, investment attractiveness had been closely linked to possession of natural resources, or a large domestic market, while production and trade globalization, competitiveness as a location for investment, and exporting, have become the main determinants of attractiveness. Sources of FDI in the past, came almost exclusively from industrial countries, though recently those sources have widened, emerging from developing countries in their own right, and for their own regions. IFC, as an international initiative to promote FDI in developing countries, is liable to promote bilateral trade agreements, bilateral and multilateral financial institutions, and investment promotion programs; its advisory role may vary from diagnostic studies overviewing constraints to FDI, to investment policy studies giving specific solutions on either changes, or strategies. The study further looks at how policy environment is set, and at finding investor opportunities, through project financing, largely structured as joint ventures. The inherent, fragile nature of joint ventures, restricts foreign ownership, thus limiting project structures; however, careful project design has lead to successful operations, by ensuring management, and financial arrangements. Still, to maximize benefits, an unfinished agenda of policy reform remains, and, as more countries open to FDI, this integration will lead to an overall increase in FDI flows.

Author : TORFINN HARDING AND BEATA SMARZYNSKA JAVORCIK
Publisher : World Bank Publications
Page : 52 pages
File Size : 41,6 Mb
Release : 2012
Category : Electronic
ISBN : 8210379456XXX

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Developing Economies and International Investors: Do Investment Promotion Agencies Bring Them Together? by TORFINN HARDING AND BEATA SMARZYNSKA JAVORCIK Pdf

Many countries spend significant resources on investment promotion agencies in the hope of attracting inflows of foreign direct investment. Despite the importance of this question for public policy choices, little is known about the effectiveness of investment promotion efforts. This study uses newly collected data on national investment promotion agencies in 109 countries to examine the effects of investment promotion on foreign direct investment inflows. The empirical analysis follows two approaches. First, it tests whether sectors explicitly targeted by investment promotion agencies receive more foreign direct investment in the post-targeting period relative to the pre-targeting period and non-targeted sectors. Second, it examines whether the existence of an investment promotion agency is correlated with higher foreign direct investment inflows. Results from both approaches point to the same conclusion. Investment promotion efforts appear to increase foreign direct investment inflows to developing countries. Moreover, agency characteristics, such as the agency's legal status and reporting structure, affect the effectiveness of investment promotion. There is also evidence of diversion of foreign direct investment due to investment incentives offered by other countries in the same geographic region.

Author : Annie Dufey,Maryanne Grieg-Gran,Halina Ward
Publisher : IIED
Page : 202 pages
File Size : 47,5 Mb
Release : 2008
Category : Direkte investeringer
ISBN : 9781843696834

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Responsible Enterprise, Foreign Direct Investment and Investment Promotion by Annie Dufey,Maryanne Grieg-Gran,Halina Ward Pdf

Brings together a series of papers identifying opportunities for Investment Promotion Agencies (IPAs) to attract Foreign direct investment (FDI) that is associated with positive contributions to sustainable development and good corporate social responsibility practices.

Author : J Anthony VanDuzer,Patrick Leblond
Publisher : Routledge
Page : 261 pages
File Size : 47,8 Mb
Release : 2020-02-17
Category : Law
ISBN : 9780429594694

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Promoting and Managing International Investment by J Anthony VanDuzer,Patrick Leblond Pdf

This book provides an overview of international investment policy and policy-making, drawing upon perspectives from law, economics, international business, and political science. International investment is a complex phenomenon with significant effects worldwide. Developing effective policies and strategies to attract investment in sufficient quantities and marshal it to contribute to sustainable development is a critical challenge for governments at all levels. This book’s interdisciplinary approach provides fresh insights into the mix of policy options available to governments seeking investment to support their country’s (or region’s) development. As well as identifying ways to effectively design, implement, and assess policies to attract foreign investment, it explores how to manage foreign investment’s effects. Various dimensions of international investment policy are discussed, including benefits and costs (economic, environmental, social, and political) of foreign investment, the significance of global value chains, state-owned enterprises and sovereign wealth funds, and the role of tax policy, investment promotion, and policy advocacy, location branding, investment treaties, and national security considerations. Through its contributions to a new interdisciplinary understanding of international investment policy-making, this book will benefit students and scholars working in areas such as international business, international economic law, international economics, development economics, international development, and international political economy as well as being a valuable resource for policy-makers.

Author : Thérèse J. Bélot,Dale R. Weigel,International Finance Corporation,Multilateral Investment Guarantee Agency
Publisher : Washington, D.C. : World Bank
Page : 86 pages
File Size : 44,9 Mb
Release : 1992
Category : Social Science
ISBN : STANFORD:36105008717691

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Programs in Industrial Countries to Promote Foreign Direct Investment in Developing Countries by Thérèse J. Bélot,Dale R. Weigel,International Finance Corporation,Multilateral Investment Guarantee Agency Pdf

Author : Boris Ricken,George Malcotsis
Publisher : CRC Press
Page : 222 pages
File Size : 51,7 Mb
Release : 2016-03-23
Category : Business & Economics
ISBN : 9781317037620

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The Competitive Advantage of Regions and Nations by Boris Ricken,George Malcotsis Pdf

The importance of technology transfer for the competitive advantage of companies and the economic success of nations cannot be overstated. Technology is a determining element for firms and nations to increase productivity, to compete, and to prosper. In The Competitive Advantage of Regions and Nations, the authors stress that companies, investment promotion agencies, and government bodies cannot simply sit and wait until new technologies arrive in their domain. Rather, they need to manage the identification, assessment, attraction, absorption and application of new technologies. In this comprehensive book, Boris Ricken and George Malcotsis explain how technology transfer in Foreign Direct Investment (FDI) projects can be systematically managed. Using some 40 case studies as illustration, they give step-by-step guidance for managers. The explanation of theory in this book, together with the frameworks and cases delivering solutions to the various challenges of technology transfer will be highly appreciated by managers of companies, investment promotion agencies, and government bodies alike. It also offers students confronted with the topic an understandable study guide.

Author : United Nations. Economic Commission for Europe
Publisher : Unknown
Page : 112 pages
File Size : 50,8 Mb
Release : 2000
Category : Investments, Foreign
ISBN : UCBK:C079775534

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Promoting Foreign Direct Investment in Central and Eastern Europe and the CIS by United Nations. Economic Commission for Europe Pdf

There are over 20 countries classified as transition economies. It is undeniable that a basic and essential challenge for all transition economies is still the attraction of investment and, in particular, long-term investment. The aim of this publication is to outline and discuss structure, strategies and aims of investment promotion, and to help already existing investment promotion agencies (IPAs) to define a more targeted and clearer direction of their work. The papers presented in the guide are intended to give an overview of foreign direct investment (FDI) flows, the role of IPAs and the everyday problems these agencies face. This volume is part of a series on trade and investment guides to assist economies in transition, as well as economic actors in other countries, to become familiar with best practices in the areas of trade, investment and related legal and commercial practices.