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Policy Framework for Investment

A Review of Good Practices

image of Policy Framework for Investment
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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Trade Policy

A country’s trade policy influences both domestic and foreign investment and is important for any development strategy. Investment has long been recognised as a key ingredient to economic growth and development. This chapter explores how trade policy can: - Encourage investment – both domestic and foreign. When appropriate, foreign direct investment (FDI) is the focus. The positive role of FDI for development has been recently stressed by the Monterrey Consensus. Trade policy is one of the main determinants of foreign firms in their investment decisions. - Maximise the contribution of investment to development growth, in particular in the context of trade policy by encouraging technology transfers and other linkages that induce growth. 

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