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Roll out the red carpet and they will come: investment promotion and FDI inflows

journal contribution
posted on 2023-06-08, 12:52 authored by Torfinn Harding, Beata S Javorcik
This study uses newly collected data on 124 countries to examine the effects of investment promotion on inflows of US foreign direct investment (FDI). We test whether sectors explicitly targeted by investment promotion agencies in their efforts to attract FDI receive more investment in the post-targeting period, relative to the pre-targeting period and non-targeted sectors. The results of our analysis are consistent with investment promotion leading to higher FDI flows to countries in which red tape and information asymmetries are likely to be severe. The data suggest that investment promotion works in developing countries but not in industrialised economies.

History

Publication status

  • Published

Journal

Economic Journal

ISSN

1468-0297

Publisher

Blackwell Publishing

Issue

557

Volume

121

Page range

1445-1476

Department affiliated with

  • Economics Publications

Full text available

  • No

Peer reviewed?

  • Yes

Legacy Posted Date

2012-10-29

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