Publication:
The Effectiveness of Promotion Agencies at Attracting Foreign Direct Investment

dc.contributor.author Morisset, Jacques
dc.contributor.author Andrews-Johnson, Kelly
dc.date.accessioned 2013-08-14T19:15:55Z
dc.date.available 2013-08-14T19:15:55Z
dc.date.issued 2004
dc.description.abstract A perplexing question has become increasingly important: Does investment promotion really work? The authors hereby made a major step in providing a convincing answer to this question. Because many countries were not yet trying to promote investment, the authors could conduct a very simple test: compare foreign direct investment (FDI) flows into countries that had promotion activities in the United States, with the flows into countries that didn't. The study provided some crude support for the idea that promotion worked and, with some assumptions, the costs of attracting an investor, or its trade-off seemed to favor promotion. But more recent data from this survey provided the authors a more sophisticated methodology; as a result, their study is more convincing, and addresses many more questions than earlier work. They find the median expenditure on investment by developing countries to be smaller than expected. However, the study shows that expenditures below a certain annual level yield few, if any returns. Where the investment climate is bad, efforts to improve policy seem sensible; but in fact, in countries with very poor investment climates, returns to expenditures on other promotion activities are likely to be especially low. Similarly, it is likely that promotion has more impact on certain kinds of investors than on others. The research stipulates important factors about organizational issues, and, results show that agencies with some kind of participation from the private sector, do better than those that are purely governmental. It also provides evidence to suggest that, at least for many countries, a dollar spent on investment promotion yields a better return than a dollar provided as a subsidy or given up through a tax incentive program. en
dc.identifier http://documents.worldbank.org/curated/en/2003/10/2809356/effectiveness-promotion-agencies-attracting-foreign-direct-investment
dc.identifier.isbn 0-8213-5606-2
dc.identifier.uri http://hdl.handle.net/10986/15073
dc.language English
dc.language.iso en_US
dc.publisher Washington, DC: World Bank
dc.relation.ispartofseries FIAS Occasional Paper;No. 16
dc.rights CC BY 3.0 IGO
dc.rights.holder World Bank
dc.rights.uri http://creativecommons.org/licenses/by/3.0/igo
dc.subject INVESTMENT PROMOTION
dc.subject PROMOTIONAL STRATEGIES
dc.subject FOREIGN DIRECT INVESTMENTS
dc.subject INVESTOR CONFIDENCE
dc.subject BUSINESS ENVIRONMENT
dc.subject PRIVATE SECTOR PARTICIPATION
dc.subject COST-BENEFIT ANALYSIS
dc.subject SURVEYS
dc.subject EXPENDITURE PATTERNS
dc.subject RATE OF RETURN
dc.subject POLICY FORMATION
dc.subject ORGANIZATIONAL STRUCTURE
dc.subject ADVERTISEMENTS
dc.subject BENEFIT ANALYSIS
dc.subject CHAMBERS OF COMMERCE
dc.subject CONCEPTUAL FRAMEWORK
dc.subject CROSS-COUNTRY REGRESSIONS
dc.subject DOMESTIC INVESTMENT
dc.subject ECONOMIC DEVELOPMENT
dc.subject ECONOMISTS
dc.subject ELASTICITIES
dc.subject EMPIRICAL ANALYSIS
dc.subject EXPENDITURES
dc.subject FDI
dc.subject FINANCIAL RESOURCES
dc.subject FOREIGN DIRECT INVESTMENT
dc.subject FOREIGN INVESTMENT
dc.subject FOREIGN INVESTOR
dc.subject FOREIGN INVESTORS
dc.subject GNP
dc.subject GROSS NATIONAL PRODUCT
dc.subject HOST COUNTRY
dc.subject HOST ECONOMY
dc.subject INCOME
dc.subject INCREASING RETURNS
dc.subject INDUSTRIAL COUNTRIES
dc.subject INDUSTRIAL DEVELOPMENT
dc.subject INFLATION
dc.subject INTERNATIONAL INVESTMENT
dc.subject INTERNATIONAL STANDARDS
dc.subject INVESTMENT CLIMATE
dc.subject INVESTMENT CLIMATES
dc.subject INVESTMENT DECISIONS
dc.subject INVESTMENT GUARANTEE AGENCY
dc.subject INVESTMENT INCENTIVES
dc.subject INVESTMENT LEADS
dc.subject INVESTMENT PROMOTION
dc.subject INVESTMENT PROMOTION AGENCIES
dc.subject INVESTMENT PROMOTION AGENCY
dc.subject INVESTMENT SERVICES
dc.subject IPA
dc.subject IPAS
dc.subject LABOR COSTS
dc.subject LEGAL STATUS
dc.subject LOCAL FIRMS
dc.subject LOCAL MARKET
dc.subject MARKET FAILURE
dc.subject MARKET SIZE
dc.subject MEDIA
dc.subject NATIONAL POLICIES
dc.subject NATURAL RESOURCES
dc.subject POTENTIAL INVESTORS
dc.subject PRIVATE INVESTMENT
dc.subject PRIVATE SECTOR
dc.subject PRIVATE SECTOR INVOLVEMENT
dc.subject PROFESSIONAL STAFF
dc.subject PROGRAMS
dc.subject PUBLIC SECTOR
dc.subject REGIONAL AGREEMENT
dc.subject SUBSIDIARY RIGHTS
dc.subject TAX INCENTIVES
dc.subject TAXATION
dc.subject TECHNICAL ASSISTANCE
dc.subject TECHNOLOGY TRANSFERS
dc.title The Effectiveness of Promotion Agencies at Attracting Foreign Direct Investment en
dspace.entity.type Publication
okr.doctype Publications & Research :: Publication
okr.doctype Publications & Research :: Publication
okr.docurl http://documents.worldbank.org/curated/en/2003/10/2809356/effectiveness-promotion-agencies-attracting-foreign-direct-investment
okr.globalpractice Transport and ICT
okr.globalpractice Trade and Competitiveness
okr.identifier.doi 10.1596/0-8213-5606-2
okr.identifier.externaldocumentum 000012009_20031203122658
okr.identifier.internaldocumentum 2809356
okr.identifier.report 27150
okr.language.supported en
okr.pdfurl http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2003/12/03/000012009_20031203122658/Rendered/PDF/271500PAPER0Ef1f0promotion0agencies.pdf en
okr.theme Financial and private sector development :: Other financial and private sector development
okr.topic International Economics and Trade :: Foreign Direct Investment
okr.topic International Economics and Trade :: Trade and Regional Integration
okr.topic International Terrorism and Counterterrorism
okr.topic Environmental Economics and Policies
okr.topic Information and Communication Technologies :: ICT Policy and Strategies
okr.unit FIAS Investment Generation-WB (CICIG)
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