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Policy Framework for Investment

A Review of Good Practices

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OECD's Policy Framework for Investment is designed to encourage policy makers to ask appropriate questions about their economy, their institutions and their policy settings in order to identify their priorities, to develop an effective set of policies and to evaluate progress. This Review of Good Practices in OECD and non-OECD economies is published as a companion volume to the Framework and provides analytical background material on each of the ten chapters of the Framework.

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Infrastructure and Financial Sector Development

Well functioning financial markets and good infrastructure promotes investment by connecting firms to their customers and suppliers and helping them to take advantage of modern production techniques and organisational structures. Conversely, inadequacies in infrastructure and financial services create barriers to opportunities and increase costs for all firms, from rural micro-entrepreneurs to multinational enterprises. By impeding new entry into markets (by either domestic or foreign firms), these inadequacies also limit competition, thus dulling incentives to innovate and to improve productivity.

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