Investment Linkages and Incentives
This note seeks to provide an overview of investment incentive policy as a tool for Governments seeking to promote technology transfer and productivity spillovers by multinational enterprises (MNEs) in the host economy to local firms and suppliers. It summarizes international experiences to demonstrate what has worked and what has not worked, as well as the advantages and disadvantages of different investment incentive schemes. Evidence suggests that backward linkages between MNEs and local suppliers are the most important channels for technology and productivity spillovers to local firms (Jordaan et al, 2020). Furthermore, backward linkages offer an important avenue for ambitious local firms to integrate into Global Value Chains (GVCs). However, several market failures and challenges often prevent backward linkages from materializing. Policy makers can use investment incentives and other policy tools to help address these challenges. This note highlights examples of investment incentive schemes used by Governments, as well as their pros and cons.
Main Authors: | Sabha, Yassin, Liu, Yan, Douw, Wim |
---|---|
Format: | Brief biblioteca |
Language: | English |
Published: |
World Bank, Washington, DC
2020-05-01
|
Subjects: | INVESTMENT INCENTIVES, FOREIGN DIRECT INVESTMENT, FDI, BACKWARD LINKAGE, GLOBAL VALUE CHAIN, INVESTMENT CLIMATE, |
Online Access: | http://documents.worldbank.org/curated/en/354781589316916550/Investment-Linkages-and-Incentives-Promoting-Technology-Transfer-and-Productivity-Spillovers-from-Foreign-Direct-Investment-FDI https://hdl.handle.net/10986/33760 |
Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
Similar Items
-
Foreign Direct Investment, Backward Linkages, and Productivity Spillovers
by: Jordaan, Jacob, et al.
Published: (2020-05-01) -
Romania's Integration into European Markets: Implications for Sustainability of the Current Export Boom
by: Kaminski, Bartlomiej, et al.
Published: (2004-11) -
Global Investment Competitiveness Report 2017/2018 : Foreign Investor Perspectives and Policy Implications
by: World Bank Group
Published: (2018) -
Multinational Corporation Affiliates, Backward Linkages, and Productivity Spillovers in Developing and Emerging Economies
by: Jordaan, Jacob A., et al.
Published: (2020-08) -
Global Investment Competitiveness Report 2019/2020 : Rebuilding Investor Confidence in Times of Uncertainty
by: World Bank Group
Published: (2020-05-27)