Incentives And Foreign Direct Investment

Introduction 1
Chapter I. Definition and main types of foreign-direct-investment incentives 3
Chapter II. A theoretical analysis of foreign-direct-investment incentives 8
A. The rationale for incentives 8
B. Effects of competition on FDI incentives 13
Chapter III. Incentives competition among countries 16
A. Overall trends 16
B. Fiscal incentives 17
C. Financial incentives 28
D. Other incentives 33
Chapter IV. Effects of incentives on foreign investors’ decisions: a review of the evidence 35
A. Role of incentives 36
B. Impact of specific types of incentives 39
Chapter V. International experiences in dealing with foreign-direct-investment incentives 49
A. The OECD 50
B. The Uruguay Round Agreement 52
C. The Treaty of Rome 56
D. The Caribbean Community 62
Chapter VI. Conclusions: towards an action program 67
A. National initiatives 70
B. Bilateral initiatives 72
C. Regional initiatives 74
D. Multilateral initiatives 75
References 78