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| Content Provider | Springer Nature Link |
|---|---|
| Author | Bellak, C. Leibrecht, M. Stehrer, R. |
| Copyright Year | 2009 |
| Abstract | Using public policy instruments to attract Foreign Direct Investment (FDI) has become standard in most countries, irrespective of their level of development, geographical location or industrial structure. Against this background the paper analyses the suitability of various public policies to attract inward FDI based on a sample of 11 countries and 10 industries from the manufacturing sector over 10 years. For this aim we derive an empirical baseline model of the determinants of inward FDI-stock. From this baseline model FDI-gaps—measured as the difference between the “estimated actual” inward FDI-stock and the “potential” FDI-stock, which could be realized if a certain “best practice policy” were carried out—are derived. Thereby the analysis focuses on business taxation, public research and development expenditures, the information and communication infrastructure endowment, labor costs as well as institutional and skill-related policies. The analysis inter alia reveals the share of each of these location factors in the total industry- and country-level FDI-gap. Moreover, the analysis explores how policy advice depends on the definition of the “best practice policy”. |
| Starting Page | 19 |
| Ending Page | 46 |
| Page Count | 28 |
| File Format | |
| ISSN | 03408744 |
| Journal | Empirica |
| Volume Number | 37 |
| Issue Number | 1 |
| e-ISSN | 15736911 |
| Language | English |
| Publisher | Springer US |
| Publisher Date | 2009-06-13 |
| Publisher Place | Boston |
| Access Restriction | One Nation One Subscription (ONOS) |
| Subject Keyword | Economic policy Foreign direct investment European Union Industry-level study Location decision Public Finance & Economics Industrial Organization Econometrics Macroeconomics/Monetary Economics International Economics European Integration |
| Content Type | Text |
| Resource Type | Article |
| Subject | Geography, Planning and Development Development Economics and Econometrics |
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