Do Natural Resources Attract Nonresource FDI?

Unionization triggers tax incentives to attract FDI

This paper examines tax competition between a unionized and a nonunionized country for the location of an outside firm. We show that unionization offers an extra incentive for the government to attract a foreign competitor to a concentrated domestic market, in order to limit the power of the domestic union. This results in the unionized country’s government offering a tax discount (or a subsidy...

Government Strategies to Attract R&d-intensive Fdi

Due to the increased internationalization of business R&D, foreign-controlled multinational enterprises are now seen by most governments as a central actor in national innovation systems and as a catalyst for upgrading in global value chains. As a result, competition among countries to attract the R&D activities of multinational enterprises has increased substantially during the last years. The...

Measures to Attract FDI Investment Promotion , Incentives and Policy Intervention

The working assumption nowadays is that in a relatively non-distorted domestic policy environment, foreign direct investment (FDI) brings in much-needed capital, technical know-how, organisational, managerial and marketing practices and global production networks, thus facilitating the process of economic growth and development in host countries [Lall 2000; OECD 2002:Chapters 1 and 3]. For inst...

Do Democracies Attract Portfolio Investment?

Tourism And Natural Resources