Publication: Global Investment Promotion Best Practices 2012
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Date
2012-04
ISSN
Published
2012-04
Author(s)
World Bank Group
Abstract
Global flows of foreign direct
investment (FDI) declined severely during the recent
economic and financial crisis. As the crisis eased, recovery
in world economies spurred a resurgence of FDI, and that in
turn reignited competition for investments among host
countries. Especially in emerging markets, governments long
have prized FDI as a source of much-needed capital and jobs.
But in the 21st century, governments value FDI as much or
more as a source of technology and know-how. Policymakers
have witnessed how knowledge brought by foreign investors
can spill over to local firms, bolster skills in the local
workforce, and thus increase the overall competitiveness of
their economies. To foster development of intellectual
capital as well as businesses and jobs, governments
increasingly recognize the importance of cultivating FDI.
Providing business and investment climate information is a
crucial component of IPI activities in all economies. But
IPIs can gain particular advantage in those settings where
investors find it most difficult to obtain reliable
information and meet bureaucratic requirements. Research
shows, for example, that investment promotion is more
effective in economies where English is not an official
language, and in economies that are more culturally distant
from the investors corporate homes. Investment promotion
also has more impact in countries with less effective
governments and in economies that erect more barriers to
launching a business (such as more time to obtain a
construction permit). In this 2012 edition, GIPB focuses
specifically on information provision in two sectors,
tourism and agribusiness. This focus should be of particular
use to economies that seek or are considering seeking FDI in
those sectors.
Citation
“World Bank Group. 2012. Global Investment Promotion Best Practices 2012. © Washington, DC. http://hdl.handle.net/10986/20423 License: CC BY 3.0 IGO.”