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Roll out the red carpet and they will come: investment promotion and FDI inflows
journal contribution
posted on 2023-06-08, 12:52 authored by Torfinn Harding, Beata S JavorcikThis study uses newly collected data on 124 countries to examine the effects of investment promotion on inflows of US foreign direct investment (FDI). We test whether sectors explicitly targeted by investment promotion agencies in their efforts to attract FDI receive more investment in the post-targeting period, relative to the pre-targeting period and non-targeted sectors. The results of our analysis are consistent with investment promotion leading to higher FDI flows to countries in which red tape and information asymmetries are likely to be severe. The data suggest that investment promotion works in developing countries but not in industrialised economies.
History
Publication status
- Published
Journal
Economic JournalISSN
1468-0297Publisher
Blackwell PublishingExternal DOI
Issue
557Volume
121Page range
1445-1476Department affiliated with
- Economics Publications
Full text available
- No
Peer reviewed?
- Yes
Legacy Posted Date
2012-10-29Usage metrics
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