FDI Qualities Policy Toolkit

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Foreign direct investment (FDI) is an important source of finance for governments looking to meet global commitments on sustainable development. But, beyond the quantity of FDI, its quality also matters. The FDI Qualities Policy Toolkit complements the OECD Policy Framework for Investment by providing more detailed and tailored guidance on priorities for policy and institutional reforms that can enhance the impacts of investment in four areas of the Sustainable Development Goals (SDGs): productivity and innovation, job quality and skills, gender equality, and decarbonisation.


Policies for improving FDI impacts on productivity and innovation

This chapter presents a Policy Toolkit to help governments channel foreign direct investment (FDI) into productivity-enhancing activities and promote productivity and innovation spillovers on small and medium-sized enterprises (SMEs). The chapter describes the various transmission channels through which FDI affects productivity and innovation as well as contextual factors determining the magnitude and direction of such impacts. It also provides a thorough overview of policies and institutions at the intersection of investment and other complementary policies that can enhance the impacts of FDI on productivity and innovation.


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