The Impact of Investment Policy in a Changing Global Economy : A Review of the Literature
Evidence shows that foreign direct investment can provide many benefits to host countries, including productivity improvements, better jobs, and knowledge transfer. Further, it can serve as a vehicle for transformation of domestic production and be...
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| Format: | Working Paper |
| Language: | English en_US |
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World Bank, Washington, DC
2015
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| Online Access: | http://documents.worldbank.org/curated/en/2015/10/25147224/impact-investment-policy-changing-global-economy-review-literature http://hdl.handle.net/10986/22859 |
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okr-10986-22859 |
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oai_dc |
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Digital Repository |
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Foreign Institution |
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Digital Repositories |
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World Bank Open Knowledge Repository |
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World Bank |
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English en_US |
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TAX INCENTIVES WITHDRAWAL INVESTMENT PLANS MARKET STRUCTURE FOREIGN CAPITAL EQUIPMENT CHECKS TAX RATES FOREIGN INVESTMENT INVESTMENT PROMOTION STOCK FOREIGN INVESTORS MULTILATERAL INVESTMENT GUARANTEE AGENCY TAX INCENTIVES INTEREST FOREIGN OWNERSHIP GUARANTEES ARM INVESTMENT REGULATIONS INVESTMENT POLICIES EMERGING ECONOMIES PRIVATE CREDIT INVESTOR PROTECTION EXCHANGE DOMESTIC MARKET DEVELOPING COUNTRIES ASSET EXPORTERS REVENUES JOINT VENTURES INVESTMENT ENVIRONMENT REINVESTMENTS MARKET SHARES INCENTIVES TAX OWNERSHIP JOINT VENTURES INCOME TAX TREATIES MARKET ACCESS INTERNATIONAL BANK FOREIGN DIRECT INVESTMENT INFORMATION ASYMMETRIES INSTRUMENTS DISPUTE RESOLUTION POLITICAL RISKS BUDGET CONVERSION FOREIGN MARKETS STATUTORY TAX RATES AMOUNT OF CAPITAL LABOR MARKET ARBITRATION LACK OF TRANSPARENCY GLOBAL ECONOMY CURRENCY EXTENSIVE EXPORT GROWTH TELECOMMUNICATIONS CONTRACT ENFORCEMENT HOST ECONOMY INVESTMENT OPERATIONS PORTFOLIOS MULTILATERAL INVESTMENT GUARANTEE AGENCY DOMESTIC CAPITAL HOST COUNTRIES CONTRACTS TAX EXEMPTIONS ARBITRAL AWARDS FOREIGN FIRMS INVESTMENT INCENTIVES GLOBALIZATION MARKETS MULTINATIONAL COMPANIES RETURN SETTLEMENT ACCUMULATION ENTRY BARRIERS INVESTMENT CLIMATE CONDITIONS DIRECT INVESTMENT TAX REVENUES INVESTMENT OPPORTUNITIES INVESTMENT AGREEMENTS GROSS DOMESTIC PRODUCT TAX REVENUES RETURN ON ASSETS FINANCE TAXES ACCESS TO INFORMATION TAX COMPETITION INVESTMENT DECISIONS TRANSACTIONS INVESTMENT FLOWS INVESTMENT REGIMES EMERGING MARKETS POTENTIAL INVESTORS EQUITY TRANSACTION INVESTORS MACROECONOMIC INSTABILITY TAX CREDIT GOOD INVESTMENT POLICIES TAX RATE INVESTMENT PROMOTION STATUTORY TAX RATES TRANSPARENCY INTERNATIONAL INVESTMENT INTERNATIONAL PORTFOLIOS TURNOVER FUTURE VALUE FOREIGN DIRECT INVESTMENT CONTRACTUAL RELATIONSHIPS RETURNS FOREIGN INVESTMENT INVESTOR CONFIDENCE CONTRACT INVESTMENT PATTERNS TAX COMPETITION PROPERTY INVESTMENT TAX CREDITS TAX RATES SHARES AFFILIATED ORGANIZATIONS ASSETS MARKET EMERGING EQUITY INVESTMENT INVESTMENT POLICY TAX RATE INVESTMENT DECISIONS MULTINATIONAL FIRMS INVESTMENT CLIMATE CONDITIONS INSURANCE EXPROPRIATION FOREIGN FIRMS ECONOMIC DEVELOPMENT INTERESTS TAX CREDITS INVESTOR GOODS FIXED ASSETS DOMESTIC INVESTMENT GLOBAL TRADE SECURITY INVESTMENT OPERATIONS STOCKS FOREIGN INVESTORS INVESTMENT INVESTMENT CLIMATE HOST COUNTRY SHARE INVESTOR PROTECTION INVESTMENT FLOWS INVESTMENT CLIMATE POVERTY INVESTMENT TAX CREDITS TREATY CONTRACT ENFORCEMENT AFFILIATED POLITICAL STABILITY REVENUE FOREIGN DIRECT INVESTMENT INVESTMENTS FOREIGN OWNERSHIP INVESTMENT ENVIRONMENT INVESTMENT INCENTIVES INTERNATIONAL INVESTMENT AGREEMENTS INCOME TAX RATE INVESTMENT PLANS TRANSITION ECONOMIES COMMODITIES HOST ECONOMIES INVESTMENT CLIMATE CONDITIONS PROFITS CAPITAL INVESTMENT LABOR MARKETS INVESTMENT REGULATIONS FOREIGN EQUITY EXPORT SHARE GUARANTEE DOMESTIC INVESTMENT INTERNATIONAL INVESTMENT AGREEMENTS POLITICAL RISK MULTINATIONAL COMPANIES COMPETITION INVESTING |
| spellingShingle |
TAX INCENTIVES WITHDRAWAL INVESTMENT PLANS MARKET STRUCTURE FOREIGN CAPITAL EQUIPMENT CHECKS TAX RATES FOREIGN INVESTMENT INVESTMENT PROMOTION STOCK FOREIGN INVESTORS MULTILATERAL INVESTMENT GUARANTEE AGENCY TAX INCENTIVES INTEREST FOREIGN OWNERSHIP GUARANTEES ARM INVESTMENT REGULATIONS INVESTMENT POLICIES EMERGING ECONOMIES PRIVATE CREDIT INVESTOR PROTECTION EXCHANGE DOMESTIC MARKET DEVELOPING COUNTRIES ASSET EXPORTERS REVENUES JOINT VENTURES INVESTMENT ENVIRONMENT REINVESTMENTS MARKET SHARES INCENTIVES TAX OWNERSHIP JOINT VENTURES INCOME TAX TREATIES MARKET ACCESS INTERNATIONAL BANK FOREIGN DIRECT INVESTMENT INFORMATION ASYMMETRIES INSTRUMENTS DISPUTE RESOLUTION POLITICAL RISKS BUDGET CONVERSION FOREIGN MARKETS STATUTORY TAX RATES AMOUNT OF CAPITAL LABOR MARKET ARBITRATION LACK OF TRANSPARENCY GLOBAL ECONOMY CURRENCY EXTENSIVE EXPORT GROWTH TELECOMMUNICATIONS CONTRACT ENFORCEMENT HOST ECONOMY INVESTMENT OPERATIONS PORTFOLIOS MULTILATERAL INVESTMENT GUARANTEE AGENCY DOMESTIC CAPITAL HOST COUNTRIES CONTRACTS TAX EXEMPTIONS ARBITRAL AWARDS FOREIGN FIRMS INVESTMENT INCENTIVES GLOBALIZATION MARKETS MULTINATIONAL COMPANIES RETURN SETTLEMENT ACCUMULATION ENTRY BARRIERS INVESTMENT CLIMATE CONDITIONS DIRECT INVESTMENT TAX REVENUES INVESTMENT OPPORTUNITIES INVESTMENT AGREEMENTS GROSS DOMESTIC PRODUCT TAX REVENUES RETURN ON ASSETS FINANCE TAXES ACCESS TO INFORMATION TAX COMPETITION INVESTMENT DECISIONS TRANSACTIONS INVESTMENT FLOWS INVESTMENT REGIMES EMERGING MARKETS POTENTIAL INVESTORS EQUITY TRANSACTION INVESTORS MACROECONOMIC INSTABILITY TAX CREDIT GOOD INVESTMENT POLICIES TAX RATE INVESTMENT PROMOTION STATUTORY TAX RATES TRANSPARENCY INTERNATIONAL INVESTMENT INTERNATIONAL PORTFOLIOS TURNOVER FUTURE VALUE FOREIGN DIRECT INVESTMENT CONTRACTUAL RELATIONSHIPS RETURNS FOREIGN INVESTMENT INVESTOR CONFIDENCE CONTRACT INVESTMENT PATTERNS TAX COMPETITION PROPERTY INVESTMENT TAX CREDITS TAX RATES SHARES AFFILIATED ORGANIZATIONS ASSETS MARKET EMERGING EQUITY INVESTMENT INVESTMENT POLICY TAX RATE INVESTMENT DECISIONS MULTINATIONAL FIRMS INVESTMENT CLIMATE CONDITIONS INSURANCE EXPROPRIATION FOREIGN FIRMS ECONOMIC DEVELOPMENT INTERESTS TAX CREDITS INVESTOR GOODS FIXED ASSETS DOMESTIC INVESTMENT GLOBAL TRADE SECURITY INVESTMENT OPERATIONS STOCKS FOREIGN INVESTORS INVESTMENT INVESTMENT CLIMATE HOST COUNTRY SHARE INVESTOR PROTECTION INVESTMENT FLOWS INVESTMENT CLIMATE POVERTY INVESTMENT TAX CREDITS TREATY CONTRACT ENFORCEMENT AFFILIATED POLITICAL STABILITY REVENUE FOREIGN DIRECT INVESTMENT INVESTMENTS FOREIGN OWNERSHIP INVESTMENT ENVIRONMENT INVESTMENT INCENTIVES INTERNATIONAL INVESTMENT AGREEMENTS INCOME TAX RATE INVESTMENT PLANS TRANSITION ECONOMIES COMMODITIES HOST ECONOMIES INVESTMENT CLIMATE CONDITIONS PROFITS CAPITAL INVESTMENT LABOR MARKETS INVESTMENT REGULATIONS FOREIGN EQUITY EXPORT SHARE GUARANTEE DOMESTIC INVESTMENT INTERNATIONAL INVESTMENT AGREEMENTS POLITICAL RISK MULTINATIONAL COMPANIES COMPETITION INVESTING Echandi, Roberto Krajcovicova, Jana Qiang, Christine Zhenwei The Impact of Investment Policy in a Changing Global Economy : A Review of the Literature |
| relation |
Policy Research Working Paper;No. 7437 |
| description |
Evidence shows that foreign direct
investment can provide many benefits to host countries,
including productivity improvements, better jobs, and
knowledge transfer. Further, it can serve as a vehicle for
transformation of domestic production and better integration
with global value chains. Nonetheless, these benefits are
not automatic. Investment policies are required to maximize
the potential gains of foreign direct investment. One
challenge is that there are different kinds of foreign
direct investment, and each may have different economic,
social, and environmental impacts. However, the literature
analyzing foreign direct investment often tends to swing
from an extremely case-specific focus — analyzing
experiences in one particular country in a single sector
during a given period — to lumping together the analysis as
if it was a homogenous phenomenon. Investment policy
formulation requires a framework sophisticated enough to
differentiate between the various kinds of foreign direct
investment, as well as potential challenges and benefits for
development. It must also be simple enough to enable
governments to organize and prioritize the multiple and
complex variables affecting the maximization of investment
benefits. This paper presents an overview of the literature
on the impact of foreign direct investment. The paper argues
that a logical framework is needed to organize existing
evidence from research to fill gaps in the literature and
make existing evidence more useful in targeting policy making. |
| format |
Working Paper |
| author |
Echandi, Roberto Krajcovicova, Jana Qiang, Christine Zhenwei |
| author_facet |
Echandi, Roberto Krajcovicova, Jana Qiang, Christine Zhenwei |
| author_sort |
Echandi, Roberto |
| title |
The Impact of Investment Policy in a Changing Global Economy : A Review of the Literature |
| title_short |
The Impact of Investment Policy in a Changing Global Economy : A Review of the Literature |
| title_full |
The Impact of Investment Policy in a Changing Global Economy : A Review of the Literature |
| title_fullStr |
The Impact of Investment Policy in a Changing Global Economy : A Review of the Literature |
| title_full_unstemmed |
The Impact of Investment Policy in a Changing Global Economy : A Review of the Literature |
| title_sort |
impact of investment policy in a changing global economy : a review of the literature |
| publisher |
World Bank, Washington, DC |
| publishDate |
2015 |
| url |
http://documents.worldbank.org/curated/en/2015/10/25147224/impact-investment-policy-changing-global-economy-review-literature http://hdl.handle.net/10986/22859 |
| _version_ |
1764452252108455936 |
| spelling |
okr-10986-228592021-04-23T14:04:11Z The Impact of Investment Policy in a Changing Global Economy : A Review of the Literature Echandi, Roberto Krajcovicova, Jana Qiang, Christine Zhenwei TAX INCENTIVES WITHDRAWAL INVESTMENT PLANS MARKET STRUCTURE FOREIGN CAPITAL EQUIPMENT CHECKS TAX RATES FOREIGN INVESTMENT INVESTMENT PROMOTION STOCK FOREIGN INVESTORS MULTILATERAL INVESTMENT GUARANTEE AGENCY TAX INCENTIVES INTEREST FOREIGN OWNERSHIP GUARANTEES ARM INVESTMENT REGULATIONS INVESTMENT POLICIES EMERGING ECONOMIES PRIVATE CREDIT INVESTOR PROTECTION EXCHANGE DOMESTIC MARKET DEVELOPING COUNTRIES ASSET EXPORTERS REVENUES JOINT VENTURES INVESTMENT ENVIRONMENT REINVESTMENTS MARKET SHARES INCENTIVES TAX OWNERSHIP JOINT VENTURES INCOME TAX TREATIES MARKET ACCESS INTERNATIONAL BANK FOREIGN DIRECT INVESTMENT INFORMATION ASYMMETRIES INSTRUMENTS DISPUTE RESOLUTION POLITICAL RISKS BUDGET CONVERSION FOREIGN MARKETS STATUTORY TAX RATES AMOUNT OF CAPITAL LABOR MARKET ARBITRATION LACK OF TRANSPARENCY GLOBAL ECONOMY CURRENCY EXTENSIVE EXPORT GROWTH TELECOMMUNICATIONS CONTRACT ENFORCEMENT HOST ECONOMY INVESTMENT OPERATIONS PORTFOLIOS MULTILATERAL INVESTMENT GUARANTEE AGENCY DOMESTIC CAPITAL HOST COUNTRIES CONTRACTS TAX EXEMPTIONS ARBITRAL AWARDS FOREIGN FIRMS INVESTMENT INCENTIVES GLOBALIZATION MARKETS MULTINATIONAL COMPANIES RETURN SETTLEMENT ACCUMULATION ENTRY BARRIERS INVESTMENT CLIMATE CONDITIONS DIRECT INVESTMENT TAX REVENUES INVESTMENT OPPORTUNITIES INVESTMENT AGREEMENTS GROSS DOMESTIC PRODUCT TAX REVENUES RETURN ON ASSETS FINANCE TAXES ACCESS TO INFORMATION TAX COMPETITION INVESTMENT DECISIONS TRANSACTIONS INVESTMENT FLOWS INVESTMENT REGIMES EMERGING MARKETS POTENTIAL INVESTORS EQUITY TRANSACTION INVESTORS MACROECONOMIC INSTABILITY TAX CREDIT GOOD INVESTMENT POLICIES TAX RATE INVESTMENT PROMOTION STATUTORY TAX RATES TRANSPARENCY INTERNATIONAL INVESTMENT INTERNATIONAL PORTFOLIOS TURNOVER FUTURE VALUE FOREIGN DIRECT INVESTMENT CONTRACTUAL RELATIONSHIPS RETURNS FOREIGN INVESTMENT INVESTOR CONFIDENCE CONTRACT INVESTMENT PATTERNS TAX COMPETITION PROPERTY INVESTMENT TAX CREDITS TAX RATES SHARES AFFILIATED ORGANIZATIONS ASSETS MARKET EMERGING EQUITY INVESTMENT INVESTMENT POLICY TAX RATE INVESTMENT DECISIONS MULTINATIONAL FIRMS INVESTMENT CLIMATE CONDITIONS INSURANCE EXPROPRIATION FOREIGN FIRMS ECONOMIC DEVELOPMENT INTERESTS TAX CREDITS INVESTOR GOODS FIXED ASSETS DOMESTIC INVESTMENT GLOBAL TRADE SECURITY INVESTMENT OPERATIONS STOCKS FOREIGN INVESTORS INVESTMENT INVESTMENT CLIMATE HOST COUNTRY SHARE INVESTOR PROTECTION INVESTMENT FLOWS INVESTMENT CLIMATE POVERTY INVESTMENT TAX CREDITS TREATY CONTRACT ENFORCEMENT AFFILIATED POLITICAL STABILITY REVENUE FOREIGN DIRECT INVESTMENT INVESTMENTS FOREIGN OWNERSHIP INVESTMENT ENVIRONMENT INVESTMENT INCENTIVES INTERNATIONAL INVESTMENT AGREEMENTS INCOME TAX RATE INVESTMENT PLANS TRANSITION ECONOMIES COMMODITIES HOST ECONOMIES INVESTMENT CLIMATE CONDITIONS PROFITS CAPITAL INVESTMENT LABOR MARKETS INVESTMENT REGULATIONS FOREIGN EQUITY EXPORT SHARE GUARANTEE DOMESTIC INVESTMENT INTERNATIONAL INVESTMENT AGREEMENTS POLITICAL RISK MULTINATIONAL COMPANIES COMPETITION INVESTING Evidence shows that foreign direct investment can provide many benefits to host countries, including productivity improvements, better jobs, and knowledge transfer. Further, it can serve as a vehicle for transformation of domestic production and better integration with global value chains. Nonetheless, these benefits are not automatic. Investment policies are required to maximize the potential gains of foreign direct investment. One challenge is that there are different kinds of foreign direct investment, and each may have different economic, social, and environmental impacts. However, the literature analyzing foreign direct investment often tends to swing from an extremely case-specific focus — analyzing experiences in one particular country in a single sector during a given period — to lumping together the analysis as if it was a homogenous phenomenon. Investment policy formulation requires a framework sophisticated enough to differentiate between the various kinds of foreign direct investment, as well as potential challenges and benefits for development. It must also be simple enough to enable governments to organize and prioritize the multiple and complex variables affecting the maximization of investment benefits. This paper presents an overview of the literature on the impact of foreign direct investment. The paper argues that a logical framework is needed to organize existing evidence from research to fill gaps in the literature and make existing evidence more useful in targeting policy making. 2015-11-05T15:38:31Z 2015-11-05T15:38:31Z 2015-10 Working Paper http://documents.worldbank.org/curated/en/2015/10/25147224/impact-investment-policy-changing-global-economy-review-literature http://hdl.handle.net/10986/22859 English en_US Policy Research Working Paper;No. 7437 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research |