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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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Investment Promotion and Facilitation

Although domestic firms are by far the largest investors in developing and transition economies, foreign investors are often particularly sought after for their technology, skills and expertise and for their access to international markets. Most governments, including sometimes at the sub-national level, now actively promote foreign investment through agencies mandated to this effect and offer a range of inducements to link multinational enterprises (MNEs) more closely to the local economy. The traditional aims of foreign direct investment (FDI) policy in terms of employment, exports and, to a lesser extent, import substitution still exist, but the overall emphasis in now much more on the contribution of foreign MNEs to the overall development and competitiveness of the local business sector.

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