This paper, prepared by Professor M

This paper, prepared by Professor Magnus Blomström, Stockholm School of Economics, discusses the overall pros and cons of offering FDI incentives. It argues that the use of investment incentives focusing on foreign firms is not a recommendable strategy. The main argument in support of this is that the strongest theoretical motive for financial subsidies to inward FDI tends to be external effects such as spillovers of technology and human capital, which do not follow automatically from foreign direct investment. In other words, it is not clear that FDI has an advantage over other kinds of investment. Also, the quality of the enabling environment for investment – which affects a country’s ability to attract FDI, and to benefit from it – is equally important to domestic investors. Hence, rather than proposing narrowly defined FDI policies, attractive terms to investors should be seen as part of a country’s overall industrial policy and be available on equal terms to all investors, foreign as well as domestic. Incentives should, following the same logic, focus on those activities that create the strongest potential for spillovers, including linkages between foreign-owned and domestic firms, education, training and R&D.

Kết quả (Anh) 1:

This paper, prepared by Professor Magnus Blomström, Stockholm School of Economics, discusses the overall pros and cons of offering INVESTMENT incentives. It argues that the use of investment incentives focusing on foreign firms» is not a recommendable strategy. The main argument in support of this is that the strongest theoretical motive for financial subsidies to inward FDI tends to be external effects such as spillovers of technology and human capital, which do not follow automatically from foreign direct investment. In other words, it is not clear that FDI has an advantage over other kinds of investment. Also, the quality of the enabling environment for investment-which affects a country's ability to attract FDI, and to benefit from it-is equally important to domestic investors. Hence, rather than proposing narrowly defined FDI policies, attractive terms to investors should be seen as part of a country's overall industrial policy and be available on equal terms to all investors, foreign as well as domestic. Incentives should, following the same logic, focus on those activities that create the strongest potential for spillovers, including linkages between foreign-owned and domestic firms», education, training and R & D.

Kết quả (Anh) 2:

This paper, prepared by Professor Magnus Blomström, Stockholm School of Economics, discusses the overall FDI offering pros and cons of Incentives. It argues có dùng focusing on the foreign Investment Firms Incentives is not a recommendable strategy. The main argument in support of this is theoretical motive là Strongest subsidies to inward FDI for Financial tends to be external effects of technology overflow như and human capital, do not follow automatically from mà plies. In other words, it is not clear có FDI has an Advantage over other kinds of Investment. Also, the quality of the Enabling environment for Investment - affects a country's ability mà to Attract FDI, and to Benefit from it - is Equally Important to Domestic Investors. Hence, thay proposing FDI policies narrowly defined, attractive terms to Investors seen as part of nên country's overall industrial policy a and be available to all on equal terms Investors, the foreign as well as Domestic. Incentives should, sau the same logic, focus on những hoạt có The Strongest create potencial for overflow, the between the foreign-owned gồm Linkages and Domestic Firms, education, training and R & D.