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Foreign direct investment: Key issues for promotion agencies

This policy brief examines the importance of investment promotion agencies (IPAs), which endorse specific countries or locations to investors, in stimulating foreign direct investment (FDI). It discusses how policy incentives impact FDI and emphasises the importance of promoting investment opportunities in specific industries and businesses to match the interests of both the investors and the receiving country.

The brief describes the institutional characteristics of IPAs and considers how both their position within governments and their level of autonomy influence their ability to attract FDI. It concludes that an IPA's effectiveness depends on its political visibility, as well as on broader resources in the receiving country like market size, human capital and science and technology infrastructure.

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