The Voice of Foreign Direct Investment : Foreign Investor Policy Preferences and Experiences in Developing Countries

This paper provides insights to inform government efforts to attract and retain foreign direct investment, by analyzing the results of a survey of more than 2,400 affiliates of multinational enterprises across 10 middle-income countries. The paper...

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Main Authors: Saurav, Abhishek, Kuo, Ryan
Format: Working Paper
Language:English
Published: World Bank, Washington, DC 2020
Subjects:
Online Access:http://documents.worldbank.org/curated/en/587821601988275007/The-Voice-of-Foreign-Direct-Investment-Foreign-Investor-Policy-Preferences-and-Experiences-in-Developing-Countries
http://hdl.handle.net/10986/34596
id okr-10986-34596
recordtype oai_dc
spelling okr-10986-345962022-09-20T00:11:14Z The Voice of Foreign Direct Investment : Foreign Investor Policy Preferences and Experiences in Developing Countries Saurav, Abhishek Kuo, Ryan FOREIGN DIRECT INVESTMENT MULTINATIONAL CORPORATION BUSINESS SURVEY INVESTMENT CLIMATE INTERNATIONAL BUSINESS GLOBALIZATION GLOBAL VALUE CHAIN INVESTOR PERCEPTIONS This paper provides insights to inform government efforts to attract and retain foreign direct investment, by analyzing the results of a survey of more than 2,400 affiliates of multinational enterprises across 10 middle-income countries. The paper explores corporate perspectives and decision-making on countries’ legal and regulatory environments, political risk, and investment promotion activities. The survey finds that a business-friendly policy environment is critical to multinational enterprises’ investment decisions, confirming the importance of removing regulatory barriers to foreign direct investment (particularly approval processes), lowering political risks, and having investment promotion agencies. The survey results also show that investors are heterogeneous, with affiliates’ sectors, trading behaviors, sizes, ages, source countries, and foreign ownership levels affecting their perceptions of and sensitivity to various policy factors. Thus, policy makers should tailor their policy efforts to the needs of priority investor segments. Notably, the analysis consistently finds variation based on the extent to which affiliates import their inputs, suggesting that this relatively understudied topic deserves increased research and policy attention. 2020-10-08T14:22:15Z 2020-10-08T14:22:15Z 2020-10 Working Paper http://documents.worldbank.org/curated/en/587821601988275007/The-Voice-of-Foreign-Direct-Investment-Foreign-Investor-Policy-Preferences-and-Experiences-in-Developing-Countries http://hdl.handle.net/10986/34596 English Policy Research Working Paper;No. 9425 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic FOREIGN DIRECT INVESTMENT
MULTINATIONAL CORPORATION
BUSINESS SURVEY
INVESTMENT CLIMATE
INTERNATIONAL BUSINESS
GLOBALIZATION
GLOBAL VALUE CHAIN
INVESTOR PERCEPTIONS
spellingShingle FOREIGN DIRECT INVESTMENT
MULTINATIONAL CORPORATION
BUSINESS SURVEY
INVESTMENT CLIMATE
INTERNATIONAL BUSINESS
GLOBALIZATION
GLOBAL VALUE CHAIN
INVESTOR PERCEPTIONS
Saurav, Abhishek
Kuo, Ryan
The Voice of Foreign Direct Investment : Foreign Investor Policy Preferences and Experiences in Developing Countries
relation Policy Research Working Paper;No. 9425
description This paper provides insights to inform government efforts to attract and retain foreign direct investment, by analyzing the results of a survey of more than 2,400 affiliates of multinational enterprises across 10 middle-income countries. The paper explores corporate perspectives and decision-making on countries’ legal and regulatory environments, political risk, and investment promotion activities. The survey finds that a business-friendly policy environment is critical to multinational enterprises’ investment decisions, confirming the importance of removing regulatory barriers to foreign direct investment (particularly approval processes), lowering political risks, and having investment promotion agencies. The survey results also show that investors are heterogeneous, with affiliates’ sectors, trading behaviors, sizes, ages, source countries, and foreign ownership levels affecting their perceptions of and sensitivity to various policy factors. Thus, policy makers should tailor their policy efforts to the needs of priority investor segments. Notably, the analysis consistently finds variation based on the extent to which affiliates import their inputs, suggesting that this relatively understudied topic deserves increased research and policy attention.
format Working Paper
author Saurav, Abhishek
Kuo, Ryan
author_facet Saurav, Abhishek
Kuo, Ryan
author_sort Saurav, Abhishek
title The Voice of Foreign Direct Investment : Foreign Investor Policy Preferences and Experiences in Developing Countries
title_short The Voice of Foreign Direct Investment : Foreign Investor Policy Preferences and Experiences in Developing Countries
title_full The Voice of Foreign Direct Investment : Foreign Investor Policy Preferences and Experiences in Developing Countries
title_fullStr The Voice of Foreign Direct Investment : Foreign Investor Policy Preferences and Experiences in Developing Countries
title_full_unstemmed The Voice of Foreign Direct Investment : Foreign Investor Policy Preferences and Experiences in Developing Countries
title_sort voice of foreign direct investment : foreign investor policy preferences and experiences in developing countries
publisher World Bank, Washington, DC
publishDate 2020
url http://documents.worldbank.org/curated/en/587821601988275007/The-Voice-of-Foreign-Direct-Investment-Foreign-Investor-Policy-Preferences-and-Experiences-in-Developing-Countries
http://hdl.handle.net/10986/34596
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