Retention and Expansion of Foreign Direct Investment : Political Risk and Policy Responses

Due to its recognized benefits, most countries today regardless of their level of development compete for and dedicate significant resources to attracting foreign direct investment (FDI). Capturing the full positive spillovers of FDI is a long-term...

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Main Author: World Bank
Format: Working Paper
Language:English
Published: World Bank, Washington, DC 2019
Subjects:
Online Access:http://documents.worldbank.org/curated/en/387801576142339003/Political-Risk-and-Policy-Responses
http://hdl.handle.net/10986/33082
id okr-10986-33082
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spelling okr-10986-330822021-05-25T09:31:17Z Retention and Expansion of Foreign Direct Investment : Political Risk and Policy Responses World Bank FOREIGN DIRECT INVESTMENT POLITICAL RISK GOVERNMENT CONDUCT Due to its recognized benefits, most countries today regardless of their level of development compete for and dedicate significant resources to attracting foreign direct investment (FDI). Capturing the full positive spillovers of FDI is a long-term process and requires regulatory certainty and predictability to enable strategic business planning. This paper aims to fill this gap in evidence-based policy making, by contributing to the understanding of how political risks emanating from government conduct affect FDI and proposing a tool for governments to help investors retain and expand investments. Based on investor survey data and empirical analysis of investor-state dispute settlement (ISDS), the paper aims to draw attention to this issue and to highlight that many countries may inadvertently be losing significant amounts of FDI. The paper responds to an urgent need for governments to provide a minimum institutional infrastructure that can enable a lead agency to identify, track, and manage conflicts arising between investors and public agencies as early as possible. 2019-12-23T21:32:25Z 2019-12-23T21:32:25Z 2019 Working Paper http://documents.worldbank.org/curated/en/387801576142339003/Political-Risk-and-Policy-Responses http://hdl.handle.net/10986/33082 English CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Working Paper
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic FOREIGN DIRECT INVESTMENT
POLITICAL RISK
GOVERNMENT CONDUCT
spellingShingle FOREIGN DIRECT INVESTMENT
POLITICAL RISK
GOVERNMENT CONDUCT
World Bank
Retention and Expansion of Foreign Direct Investment : Political Risk and Policy Responses
description Due to its recognized benefits, most countries today regardless of their level of development compete for and dedicate significant resources to attracting foreign direct investment (FDI). Capturing the full positive spillovers of FDI is a long-term process and requires regulatory certainty and predictability to enable strategic business planning. This paper aims to fill this gap in evidence-based policy making, by contributing to the understanding of how political risks emanating from government conduct affect FDI and proposing a tool for governments to help investors retain and expand investments. Based on investor survey data and empirical analysis of investor-state dispute settlement (ISDS), the paper aims to draw attention to this issue and to highlight that many countries may inadvertently be losing significant amounts of FDI. The paper responds to an urgent need for governments to provide a minimum institutional infrastructure that can enable a lead agency to identify, track, and manage conflicts arising between investors and public agencies as early as possible.
format Working Paper
author World Bank
author_facet World Bank
author_sort World Bank
title Retention and Expansion of Foreign Direct Investment : Political Risk and Policy Responses
title_short Retention and Expansion of Foreign Direct Investment : Political Risk and Policy Responses
title_full Retention and Expansion of Foreign Direct Investment : Political Risk and Policy Responses
title_fullStr Retention and Expansion of Foreign Direct Investment : Political Risk and Policy Responses
title_full_unstemmed Retention and Expansion of Foreign Direct Investment : Political Risk and Policy Responses
title_sort retention and expansion of foreign direct investment : political risk and policy responses
publisher World Bank, Washington, DC
publishDate 2019
url http://documents.worldbank.org/curated/en/387801576142339003/Political-Risk-and-Policy-Responses
http://hdl.handle.net/10986/33082
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