Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/247882 
Year of Publication: 
2021
Series/Report no.: 
IFN Working Paper No. 1400
Publisher: 
Research Institute of Industrial Economics (IFN), Stockholm
Abstract: 
Foreign Direct Investment (FDI) can benefit host countries by facilitating access to sophisticated technologies, good management and global value chains. However, multinational firms have many alternative locations from which to choose. As a consequence, countries trying to attract inflows of FDI need to consider what types of industrial policies will increase the country's attractiveness to foreign firms. Moreover, different types of FDI are of different value for the host country and might require different sets of policies. This paper starts by examining and discussing the global evolution of FDI. It continues by examining determinants to FDI and the types of industrial policies that are effective in attracting FDI. It ends with a discussion on quality FDI and how host country governments can maximize the benefits of FDI.
Subjects: 
FDI
MNE
Industrial policy
Host country effects
JEL: 
F21
F23
F60
Document Type: 
Working Paper

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