The series captures the experience, innovative approaches and solutions for development of the World Bank Group covering financial sector topics of relevance to both the public and private sectors. The series is comprised of short knowledge notes, policy notes, case studies, lessons learned or a combination therein. This series was formerly known as Finance in Focus.
(Washington, DC: World Bank, 2019-12-31)
Heilbron, Armando; Whyte, Robert
A well-functioning institutional
framework can result in higher levels of foreign direct
investment. It requires several factors such as a shared
strategic vision, solid institutions capable of delivering
on their specific mandates and collaborating beyond their
walls, and a strong political and financial support for all.
The note describes key government functions for investment,
suggests a process and principles for creating optimal
institutional structures to deliver them, and provides
examples. In particular, it examines the role of investment
promotion agencies (IPAs) the agency usually tasked with
operationalizing government FDI goals as well as the
dilemmas that governments face in the context of
institutional specialization versus function consolidation.