| 7. May 2007 | | JureThe common belief in the positive relationship between economic growth and FDI led to the creation of over 160 investment promotion agencies around the world. A new paper, using comprehensive industry data over 15 years from 29 OECD countries, finds that not all FDI is equal.
Zanimivejša ugotovitev:
In 1999 alone, there were 140 changes to state or national laws related to foreign direct investment. More than 90% of these changes liberalized foreign investment policy. One fifth introduced new incentives for foreign investors including tax concessions, financial incentives, import duty exceptions, and infrastructure and training subsidies (UNCTAD (2000)). Such policies however do not guarantee realization of the potential benefits of FDI that go beyond the “capital” FDI transfers to the host country. If FDI does not exert a robust positive influence on growth, these pecuniary incentives and the active international competition for investment should be reconsidered. Local conditions in the recipient country can pose binding constraints on such spillovers.