Global Investment Promotion Best Practices 2012

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Global flows of foreign direct investment (FDI) declined severely during the recent economic and financial crisis. As the crisis eased, recovery in world economies spurred a resurgence of FDI, and that in turn reignited competition for investments among host countries.

Especially in emerging markets, governments long have prized FDI as a source of much-needed capital and jobs. But in the 21st century, governments value FDI as much or more as a source of technology and know-how. Policymakers have witnessed how knowledge brought by foreign investors can spill over to local firms, bolster skills in the local workforce, and thus increase the overall competitiveness of their economies. To foster development of intellectual capital as well as businesses and jobs, governments increasingly recognize the importance of cultivating FDI.

To position themselves to compete for FDI, most countries have set up investment promotion intermediaries (IPIs) to provide information on business conditions and opportunities to potential foreign investors. When IPIs develop relevant, accurate and timely information and make it easily available to potential investors, they reduce the risk perceptions and transaction costs of investment projects. The Global Investment Promotion Best Practices (GIPB) project examines how IPIs perform when approached by foreign investors during their short-listing process. The GIPB 2012 report, building on data and analysis from past editions, offers the most complete examination yet of how well IPIs accomplish this crucial task of information provision.

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