The Impact of Investment Policy in a Changing Global Economy : A Review of the Literature

Echandi, Roberto ; Krajcovicova, Jana ; Qiang, Christine Zhenwei

World Bank, Washington, DC

关键词: TAX INCENTIVES;    WITHDRAWAL;    INVESTMENT PLANS;    MARKET STRUCTURE;    FOREIGN CAPITAL;   

DOI  :  10.1596/1813-9450-7437
RP-ID  :  WPS7437

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

Evidence shows that foreign directinvestment can provide many benefits to host countries,including productivity improvements, better jobs, andknowledge transfer. Further, it can serve as a vehicle fortransformation of domestic production and better integrationwith global value chains. Nonetheless, these benefits arenot automatic. Investment policies are required to maximizethe potential gains of foreign direct investment. Onechallenge is that there are different kinds of foreigndirect investment, and each may have different economic,social, and environmental impacts. However, the literatureanalyzing foreign direct investment often tends to swingfrom an extremely case-specific focus — analyzingexperiences in one particular country in a single sectorduring a given period — to lumping together the analysis asif it was a homogenous phenomenon. Investment policyformulation requires a framework sophisticated enough todifferentiate between the various kinds of foreign directinvestment, as well as potential challenges and benefits fordevelopment. It must also be simple enough to enablegovernments to organize and prioritize the multiple andcomplex variables affecting the maximization of investmentbenefits. This paper presents an overview of the literatureon the impact of foreign direct investment. The paper arguesthat a logical framework is needed to organize existingevidence from research to fill gaps in the literature andmake existing evidence more useful in targeting policy making.