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Foreign Direct Investment Incentives

Author

Listed:
  • Constantin Sanda
  • Lupsa Dana

    (Transilvania University of Brasov Faculty of Economic Sciences Brasov, Romania)

Abstract

The aim of this paper is to examine whether international investment incentives can be justified on the host country effects of foreign direct investments. In particular, we discuss whether the externalities from the operations of foreign multinational corporations are strong and systematic enough to justify subsidizing foreign investment with various fiscal and financial incentives. We also discuss some alternative policy measures available for governments to benefit from inward foreign investment Based on the current knowledge of spillovers, we try to see whether investment incentives can be justified or not, and discusses the design of incentive policies.

Suggested Citation

  • Constantin Sanda & Lupsa Dana, 2007. "Foreign Direct Investment Incentives," Revista Tinerilor Economisti (The Young Economists Journal), University of Craiova, Faculty of Economics and Business Administration, vol. 1(7), pages 149-154, April.
    • Handle: RePEc:aio:rteyej:v:1:y:2007:i:7:p:149-154
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    File URL: http://feaa.ucv.ro/RTE/007-18.pdf
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    Citations

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    Cited by:

    1. Kodjo N’Souvi & Chen Sun & Badoubatoba Mathieu DISSANI & Folly Dovénam YOVODEVI, 2021. "Impact of Chinese Foreign Direct Investment on the growth of West African Economic and Monetary Union (WAEMU) countries," Journal of Scientific Reports, IJSAB International, vol. 3(1), pages 9-25.
    2. Mourao, Paulo Reis, 2018. "What is China seeking from Africa? An analysis of the economic and political determinants of Chinese Outward Foreign Direct Investment based on Stochastic Frontier Models," China Economic Review, Elsevier, vol. 48(C), pages 258-268.

    More about this item

    Keywords

    foreign direct investment; incentives; multinational corporations;
    All these keywords.

    JEL classification:

    • F17 - International Economics - - Trade - - - Trade Forecasting and Simulation
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions

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