Does Investment Promotion Work? : The B.E. Journal of Economic Analysis & Policy Jump to ContentJump to Main Navigation
Show Summary Details

The B.E. Journal of Economic Analysis & Policy

Editor-in-Chief: Jürges, Hendrik / Ludwig, Sandra

Ed. by Auriol , Emmanuelle / Brunner, Johann / Fleck, Robert / Mendola, Mariapia / Requate, Till / Zulehner, Christine / Schirle, Tammy


IMPACT FACTOR 2015: 0.250
5-year IMPACT FACTOR: 0.825

SCImago Journal Rank (SJR) 2015: 0.501
Source Normalized Impact per Paper (SNIP) 2015: 0.418
Impact per Publication (IPP) 2015: 0.455

Online
ISSN
1935-1682
See all formats and pricing

 


Select Volume and Issue
Loading journal volume and issue information...

30,00 € / $42.00 / £23.00

Get Access to Full Text

Does Investment Promotion Work?

Andrew Charlton1 / Nicholas Davis2

1London School of Economics,

2World Economic Forum,

Citation Information: The B.E. Journal of Economic Analysis & Policy. Volume 7, Issue 1, ISSN (Online) 1935-1682, DOI: 10.2202/1935-1682.1743, August 2007

Publication History

Published Online:
2007-08-17

Abstract

The large empirical literature on the relationship between Foreign Direct Investment (FDI) and economic growth has produced mixed results. Despite the ambiguous evidence on the benefits of FDI, investment promotion has become an active area of policy and a growing number of nations are offering services and incentives to attract investment by multinational firms. Rather than assessing whether the costs of investment promotion are justified by the potential benefits of FDI, this paper asks a prior question which is relevant to the policy debate. We investigate whether national investment promotion activities succeed in increasing the volume of inward investment or whether this expenditure merely subsidises investments which would have occurred in its absence. We use a widespread but under acknowledged feature of investment promotion practice to test the effectiveness of investment promotion at the industry level. We find that a positive effect of investment promotion on FDI inflows is robust across various empirical specifications.

Keywords: foreign direct investment; investment promotion; multinationals

Citing Articles

Here you can find all Crossref-listed publications in which this article is cited. If you would like to receive automatic email messages as soon as this article is cited in other publications, simply activate the “Citation Alert” on the top of this page.

[1]
Sasatra Sudsawasd and Santi Chaisrisawatsuk
Journal of International Commerce, Economics and Policy, 2014, Volume 05, Number 03, Page 1440009
[2]
Kazunobu Hayakawa, Hyun-Hoon Lee, and Donghyun Park
Asian Economic Journal, 2014, Volume 28, Number 2, Page 111
[3]
Gjalt de Jong, T. Binh Phan, and Hans van Ees
International Business Review, 2011, Volume 20, Number 4, Page 454

Comments (0)

Please log in or register to comment.