Corporate income tax competition, double taxation treaties, and foreign direct investment

OpenAIRE

Janeba, Eckhard

1992-01-01

In the presence of international-capital mobility foreign direct investment is influenced by corporate income taxation and the rules how taxes paid in the host country are treated at home. In this paper the exemption, credit and deduction method are considered as tax rules. First, it is shown that under the exemption method there exist tax rate combinations that lead to a reversal of capital flows compared to a free-trade situation. Second, the decision on the tax rule and the corporate tax r...

Improvement of Tax Incentives of Small Innovative Business in Russia and Abroad

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Olga Valeryevna Nikulina

2016-06-01

Full Text Available In modern conditions activity of small innovative business, as the most flexible component of the innovation economy of the country is particularly important. However, due to the specifics of their activities small innovative business needs state support, including in the field of a tax policy. In this connection, consideration of tax incentives for small innovative business activity is relevant and timely. The purpose of this study is to identify the main directions of improvement of tax incentives for small innovative business in Russia through the use of foreign experience. The study used data analysis and comparisons to identify features of the tax incentives of small innovative business in Russia and abroad. In determining the main directions of improving, the study used the method of forecasting on the basis of the results of the analysis and comparison. The article described the basic instruments of tax incentives for activities of small innovation business in Russia. The article analyzed foreign experience of application of tax privileges and preferences. The article developed and substantiated recommendations on the improvement of the Russian system of tax incentives of activity of small innovative business. The authors make conclusion that the Russian system of tax incentives is ineffective and needs to be reformed by increasing the number of tax benefits, and the development of a special tax regime through the use of foreign experience.

Financing investment in environmentally sound technologies: Foreign direct investment versus foreign debt finance

International Nuclear Information System (INIS)

Anyangah, Joshua Okeyo

2010-01-01

This paper develops a screening model to examine the relationship between alternative sources of private capital and investment in environmentally sound technologies (ESTs). In the model, a polluter (agent) must secure investment funds from the international financial markets in order to upgrade its production and abatement technology. The requisite capital can be obtained via either market loans (debt finance) or foreign direct investment (FDI). Under debt finance, the foreign financier supplies only capital and the relationship between the two parties is more 'arms-length'. By contrast, under FDI, the investor delivers both capital and managerial skills. We use the model to derive the implications of debt finance for optimal investment decisions and compare them to those obtained under FDI. Investment incentives are more pronounced under debt finance. (author)

THE SIGNIFICANCE OF FOREIGN DIRECT INVESTMENT IN COUNTRIES IN TRANSITION WITH THE PROJECTION OF FDI INFLOW IN SERBIA UNTIL 2020

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STEVANOVIĆ Mirjana

2016-11-01

Full Text Available Foreign direct investments (FDI are the core and essence of every economic policy of any country, both in theory and in practice. In other words, we have fresh capital which is placed through foreign direct investment on the one hand and on the other hand, we have equity owners who use the opportunity to place it with the aim to make a profit. The inflow of foreign direct investments in countries in transition is analyzed in this paper, with a special emphasis on Serbia with the projection of inflow movement by the year 2020 (the statistical method of a linear growth trend was applied; problems the countries in transition are faced with, legislative regulations, tax incentives

Tax incentives to promote green electricity. An overview of EU-27 countries

International Nuclear Information System (INIS)

Cansino, Jose M.; Pablo-Romero, Maria del P.; Roman, Rocio; Yniguez, Rocio

2010-01-01

This paper provides a comprehensive overview of the main tax incentives used in the EU-27 member states (MSs) to promote green electricity. Sixteen MSs use tax incentives to promote green electricity simultaneously with other promotion measures, especially quota obligations and price regulation. However, not all available technologies are promoted. For example, six MSs (Germany, Romania, Slovak Republic, Denmark, Sweden and Poland) have included an exemption on the payments of excise duties for electricity when the electricity is generated from renewable energy sources (RES). This tax incentive is the most widely used. Limited tax incentives in personal income tax are available in Belgium, France, Czech Republic and Luxembourg. In corporate tax, tax incentives consist mainly of a deduction in the taxable profit (Belgium, Greece, Czech Republic and Spain). Lower tax rates in VAT are applied in three MSs, France, Italy and Portugal. Only Spain and Italy use effective tax incentives in property tax. As a great diversity of tax incentives has been used to promote green electricity, this adds another difficulty to the EU objective of providing a renewable energy policy framework, but also it offers a useful set of case studies which can be used to inform EU policy development. (author)

Economic reform in Vietnam - the role of foreign direct investment and trade policy

International Nuclear Information System (INIS)

Tran, D.L.

1998-11-01

Vietnam was one of the five poorest countries in the world in the 1980's. Since then, Vietnam has adopted a market economic policy, and she has made substantial economic progress. In the last 10 years Meanwhile Vietnam's per capita income has increased by 3 times, the volume of export doubled very two years, and the inflation rate was reduced to 4.5 % in 1997 from 775 % in 1986. The GDP also has increased, the exchange rate with the US$ was stabilized and foreign direct investment (FDI) and trade has increased. There was about US$35 billion were invested by the foreign investors between 1987 to the middle of June 1998. However, the current crisis in the economies of Southeast Asian countries has put pressure on Vietnam to rethink seriously her future reform program with respect to stabilization and sustainable current economic policies. Since FDI is an imperative for the development of a country like Vietnam, it is necessary to use this capital very careful for her economy. Thus, the main objective of this dissertation is to study the role of FDI in the development of Vietnam. To examine this objective, various investigations were made, especially focusing on development dimensions such as reforming state enterprises, foreign trade policy, foreign investment and so on. Therefore, in the future, FDI and privatization policies should be strengthened to maintain and create an international market. Moreover, there are some major reforms required to transform the state sector into a private sector with appropriate policy measures, such as improving management of financial companies, developing the agricultural sector and minimizing bureaucracy and red tapism of the government. This dissertation provides a set of recommendations how to strengthen Vietnams economic and market situation in the 21st century. (author)

Corporate income taxation uncertainty and foreign direct investment

OpenAIRE

Zagler, Martin; Zanzottera, Cristiana

2012-01-01

This paper analyzes the effects of legal uncertainty around corporate income taxation on foreign direct investment (FDI). Legal uncertainty can take many forms: double tax agreements, different types of legal systems and corruption. We test the effect of legal uncertainty on foreign direct investment with an international panel. We find that an increase in the ratio of the statutory corporate income tax rate of the destination relative to the source country exhibits a negati...

Investment promotion in the South African manufacturing industry: incentive comparisons with Malaysia and Singapore

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Martha SI Wentzel

2014-05-01

Full Text Available South Africa needs to increase its inward foreign direct investment in order to achieve economic growth. The purpose of this article is to explore which intervention could be launched in the short term to enhance the country's attractiveness for foreign investors. The findings of the literature review demonstrated that incentives, as a determinant of investment, are the short-term intervention with the most significant potential to attract additional foreign direct investment. A comparative study, which provided insight into the incentives that are currently offered to the manufacturing sectors of three countries (South Africa, Malaysia and Singapore, assisted in identifying two additional incentives that the South African government could introduce and three existing incentives that could be amended. The introduction or modification of these incentives could ensure that South Africa has a competitive advantage to attract investment from foreign investors and thereby increase South Africa's inward foreign direct investment in the manufacturing industry.

The Free Movement of Capital and Foreign Direct Investment

DEFF Research Database (Denmark)

Hindelang, Steffen

2009-01-01

The scope of protection offered to foreign investors by EU law has become a matter of intense political debate. Neo-protectionist policies are on the rise within EU Member States, who are struggling to acclimatise to increasing inward direct investment from developing countries. Strict regulations...... are being implemented to control the flow of this investment, undermining the principle of free movement of capital. Are such policies permitted under EU law? What impact does EU law have on foreign direct investment? This book addresses these questions through a coherent doctrinal reconstruction of the EC...... Treaty provisions on free movement of capital in a third country context. Opening with a timely restatement of the central features of the EU law of free movement of capital, the book then asks the central question: What rights does a private market participant, engaged in cross-border direct investment...

FOREIGN DIRECT INVESTMENT: DIAGNOSIS AND PROPOSALS FOR A BRAZILIAN PUBLIC POLICY

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Milton de Abreu Campanario

2011-01-01

Full Text Available The text is the part of public policy of a larger research project on Brazilian Outward ForeignDirect Investment - OFDI. The text analyses the viability to adopt policies to enhance FDI,particularly outward. Based on statistical data and on literature review, the policy agenda framesthe underling questions surrounding the theme. There is not yet a theoretical framework to dealwith emergent countries’ FDI and related policies. There exist strong evidences that capital flowsthrough FDI generate externalities in the following domains: macroeconomics, microeconomicsand foreign relations particularly in areas related to industrial organization and innovation. Thetheoretical proposition is that international capital flows are compatible to monetary stability,commercial openness, investment promotion and industrial innovation policies. A betterpositioning of national enterprises internationally may result in growing partnership within theforeign environment. Brazil has not a set of policies to deal with inward and outward BrazilianFDI flows. These policies do not necessarily jeopardize macroeconomic policy and the relatedmonetary and currency stabilization goals. It contends that FDI stimulus by means of publicpolicies may contribute not just to a better competitiveness and innovation of Brazilianenterprises, but also assure a balanced growing and economic structural change.

Crawling up the value chain: domestic institutions and non-traditional foreign direct investment in Brazil, 1990-2010

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PATRICK J. W. EGAN

2015-03-01

Full Text Available Brazil attracted relatively little innovation-intensive and export-oriented foreign investment during the liberalization period of 1990 to 2010, especially compared with competitors such as China and India. Adopting an institutionalist perspective, I argue that multinational firm investment profiles can be partly explained by the characteristics of investment promotion policies and bureaucracies charged with their implementation. Brazil's FDI policies were passive and non-discriminating in the second half of the 1990s, but became more selective under Lula. Investment promotion efforts have often been undercut by weakly coordinated and inconsistent institutions. The paper highlights the need for active, discriminating investment promotion policies if benefits from non-traditional FDI are to be realized.

The importance of foreign direct investments in Sumadija and Pomoravlje region

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Đorđević Ivan

2015-01-01

Full Text Available The terms of foreign investment and foreign direct investments are very often terms in foreign economics policy because they represent one of the key issues in foreign economics and practice. The relationship between investments and economic growth is the key question in the modern economic theory. Foreign direct investments are representing the most common shape of international capital movement wich are including the long term connections between more differents countries, regions. The Sumadija and Pomoravlje Region is located in the central Part of Serbia. This Region is the heart of Serbia. Economic development of this part of Serbia is important for the economic development of the whole Serbia as a country. It is very important for the longrange economic growth to define strategy for economic growth for the region of Sumadija and Pomoravlje. In this strategy we will determine the most important tasks and objectives of economic growth also the incentives in the ten year period to come. In the transition country which is Serbia with huge regional and economical problems, without its own funds it is important to attract foreign investment, first of all direct investment. Foreign direct investment which are the basics of all investments in Serbia especially in Shumadija and Pomoravlje region.

Chinese Foreign Direct Investment in Indonesia

DEFF Research Database (Denmark)

Gammeltoft, Peter; Tarmidi, Lepi T.

China‟s increasing integration with the world economy is met with much anticipation and much anxiety in the Southeast Asian region. In Indonesia, there is intense interest in Chinese foreign direct investment (FDI), not only among academics but also among policy makers, industrialists and the gen......China‟s increasing integration with the world economy is met with much anticipation and much anxiety in the Southeast Asian region. In Indonesia, there is intense interest in Chinese foreign direct investment (FDI), not only among academics but also among policy makers, industrialists...... conducted in 2008 among Chinese invested enterprises supplemented with available official statistics and secondary data, the study finds that Chinese FDI in Indonesia is performed by mixed entities: some are owned by central government, some by regional government and some are private firms. In the case...... of joint ventures, their local partners are mostly local Chinese, except in the infrastructure, mining and energy sector where their local partners are Indonesian state-owned enterprises. Where the local developmental effects are concerned, a picture emerges where Chinese investments, at this early period...

Encouraging private sector investment in climatefriendly technologies in developing countries. An assessment of policy options for the Dutch government

International Nuclear Information System (INIS)

Van Rooijen, S.N.M.; Van Wees, M.T.

2006-10-01

This study aims to explore new or reformed policies to be adopted by the Dutch government to encourage private sector investments in climate-friendly technologies in developing countries. A literature review of barriers to climate-friendly investments and of directions for solutions has been complemented with a number of in-depth interviews with stakeholders representing the major actors involved in investment projects (project sponsors, financing institutions, institutional investors and government). The barrier analysis has resulted in the following list of key obstacles to climate-friendly investments: (1) Lack of a sound, transparent and stable enabling environment for investing in developing countries; (2) Shortage of experienced and creditworthy sponsors; (3) High specific project risks; (4) Overestimation investment risks related to (sustainable) investments in developing countries in general (risk perspective); (5) Additional costs of climate-friendly technologies; (6) Shortage of risk capital; (7) Insufficient guarantee mechanisms; (8) Lack of know-how on public-private partnership structures and on financial design; and (9) Lack of insight how corporate social responsibility can be operationalised. Four main gaps have been identified on the basis of an assessment of current Dutch policies and instruments: (1) Shortage of instruments to directly promote investments; (2) Underdeveloped guarantee instruments; (3) Too restrictive cap on project size in financial schemes; (4) Lack of support in operationalising the concept of corporate social responsibility. Four areas for new or intensified policies have been identified based on the barrier and gap analysis: (1) Direct promotion of (potentially large scale) investments, including: (a) Supporting (the establishment of) sponsor companies developing sustainable energy projects in developing countries; (b) Making risk capital available; (c) Creating investment credit facilities; (d) Making development capital in

State property tax incentives for promoting ecosystem goods and services from private forest land in the United States: a review and analysis

Science.gov (United States)

Michael A. Kilgore; Paul B. Ellefson; Travis J. Funk; Gregory E. Frey

2017-01-01

Financial incentives provided by State property tax programs are a means of promoting ecosystem services from private forest land. Identified by this 50-State 2015 review, categories of ecosystem services frequently promoted by such programs are open space and scenic resources, conservation of...

Taxation and Foreign Direct Investment: A Synthesis of Empirical Research

OpenAIRE

Ruud A. de Mooij; Sjef Ederveen

2001-01-01

This paper reviews the empirical literature on the impact of company taxes on the allocation of foreign direct investment. We make the outcomes of 25 empirical studies comparable by computing the tax rate elasticity under a uniform definition. Read also the accompanying press release . The mean value of the tax rate elasticity in the literature is around 3.3, i.e. a 1%-point reduction in the host-country tax rate raises foreign direct investment in that country by 3.3%. There exists substanti...

Analysis of foreign direct investment in the Czech Republic

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Marcela Domesová

2011-01-01

Full Text Available The foreign direct investments are joined with the process of world globalisation. Foreign direct investments are carried out especially by multinational companies. The basic forms of the foreign direct investments are “greenfield” investments and “brownfield“ investments in the form of the privatization. The Czech Republic has shown mass inflow of foreign direct investments since 1998. The aim of the paper is to evaluate the inflow of foreign direct investments in the context of the balance of payments and the evaluation their impact on the outside economic equilibrium and gross value added in the Czech Republic. The subject of the analysis is the identification of the most important factors of foreign direct investments inflow and the classification of foreign direct investments inflow from the point of view of branches and technological intensity of production as well. The aim is fulfilled by analysis of selected indicators of the balance of payments, analysis of gross value added and international comparison of foreign direct investments inflow in countries of Visegrad Group. The results show the part of privatization in foreign capital inflow, increasing import intensity and export efficiency linked with foreign direct investments. The results are subject of research focused on the process of world globalisation and regional development.

ECONOMIC CRISIS AND FOREIGN DIRECT INVESTMENTS IN ROMANIA

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E. Bako

2015-10-01

Full Text Available Foreign direct investments represent an essential factor of economic development and growth at all levels: national, regional and local (county. The authors analyse the evolution of foreign direct investments in Romania over the last decade, taking into consideration the influence of the economic and financial crisis, different territorial levels, types of foreign investments, the economic activities and also the main countries of origin. The aim of the paper is to explain some of the reasons for the illustrated evolution of FDI and to reveal some policy implications for the future period.

Mode of foreign entry, technology transfer, and foreign direct investment policy

OpenAIRE

Mattoo, Aaditya; Olarreaga, Marcelo; Saggi, Kamal

2001-01-01

Foreign direct investment can take place through the direct entry of foreign firms or the acquisition of existing domestic firms. Mattoo, Olarreaga, and Saggi examine the preferences of a foreign firm and the host country government with respect to these two modes of foreign direct investment in the presence of costly technology transfer. The tradeoff between technology transfer and market...

Foreign Direct Investment and its Role in the Development of Greece

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Vasiliki DELITHEOU

2011-06-01

Full Text Available A distinctive characteristic of Global Economy over the last few decades has been the rising rate and impressive increase in Foreign Direct Investment (FDI globally. Due to the potential role that foreign direct investment may play in accelerating the growth rate and re-shaping the economy, many developing countries are seeking such types of investment that can multiply efforts being made towards the growth of their economy. Consequently, foreign direct investment has become an important source of private external finance for developing countries. For this reason, countries like Greece are attempting to focus on the implementation of policies that can attract specific FDI and thus achieve high rates of growth. Attracting FDI and the subsequent creation of sustainable enterprises that will provide an increase in jobs and will reinforce the productivity of the country, is today a national target.

Policy Recommendations for Developing Foreign-invested Enterprise in China

Institute of Scientific and Technical Information of China (English)

原磊

2008-01-01

China has undergone the three major stages in its development of foreign-invested enterprise: exploratory development, accelerated development and innovative development. This harnessing of foreign investment has resulted in tremendous success for China, including making up for the funds shortage for economic construction, promoting corporate technological progress and management expertise, easing employment pressure, increasing fiscal revenue and boosting trade. At the same time, there have been problems, including questions of economic security, environment and energy issues, unequal competition and problems with the management of foreign-invested enterprises. To promote the development of foreign-invested enterprises in both a healthy and rapid fashion, China should look toward "maintaining policy continuity, promoting the forward-looking nature of policy, strengthening policy guidance and highlighting policy innovativeness."

Private long-term care insurance and state tax incentives.

Science.gov (United States)

Stevenson, David G; Frank, Richard G; Tau, Jocelyn

2009-01-01

To increase the role of private insurance in financing long-term care, tax incentives for long-term care insurance have been implemented at both the federal and state levels. To date, there has been surprisingly little study of these initiatives. Using a panel of national data, we find that market take-up for long-term care insurance increased over the last decade, but state tax incentives were responsible for only a small portion of this growth. Ultimately, the modest ability of state tax incentives to lower premiums implies that they should be viewed as a small piece of the long-term care financing puzzle.

Investment Incentives and Effective Tax Rates in the Philippines; A Comparison With Neighboring Countries

OpenAIRE

Alexander D Klemm; Dennis P Botman; Reza Baqir

2008-01-01

We compare the general tax provisions and investment incentives in the Philippines to six other east-Asian economies-Malaysia, Indonesia, Lao, Vietnam, Cambodia, and Thailand. We calculate effective tax rates and find that general effective tax rates are relatively high in the Philippines, while investment incentives are comparable to those in neighboring countries. Tax holidays are most attractive for very profitable firms, creating redundancy, and for investment in short-lived assets. We al...

Foreign direct investment and liberalization policies in Pakistan: An empirical analysis

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Rana Ejaz Ali Khan

2014-12-01

Full Text Available To enhance the inflow of foreign direct investment (FDI and ultimately to increase the economic growth, the countries have implemented a variety of financial and trade liberalization policies in the last three decades. Pakistan also initiated such type of policies. This study makes an analysis of the impact of liberalization (financial and trade in Pakistan, on the inflow of FDI using the time series data of 1971–2009. The DF-GLS test is used to determine the level of integration, and autoregressive distributed lag model to examine the long-run relationship. The results indicate that liberalization indicators, like financial liberalization index and trade openness along with real interest rate, negatively affect the inflow of FDI in Pakistan. Tax revenue of product also negatively affects the FDI. On the other hand, the gross fixed capital formation, infrastructure, and inflation positively influence the FDI in Pakistan. The market size (proxied by real gross domestic product has shown insignificant effect on FDI.

BUSINESS DEVELOPMENT, FOREIGN DIRECT INVESTMENT AND INTERNATIONAL TRADE: A policy and economic comparative analysis for Canada

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Isabel Husid

2015-01-01

Full Text Available The present work aims to achieve an overall view of Foreign Direct Investment and International Trade in Canada, analyzing both the current situation and the actions and policies being implemented by several provinces to promote this subject. This study will be valuable to companies and governments to understand what has been done and to support strategic planning to invest and trade with Canada, especially for the Brazilian market.

The Promotion of Foreign Direct Investment into Japan - The Measures' Impact on FDI Series

OpenAIRE

Maiko Wada

2005-01-01

At the occasion of delivering the fiscal year 2003 policy speech, Prime Minister Junichiro Koizumi proposed to double foreign direct investment (hereafter, FDI) stock into Japan within five years to revitalize the Japanese economy. Against this background, various measures aimed at promoting FDI into Japan have been investigated and implemented by the government and concerned ministries. A number of significant measures implemented in the most recent years to improve the investment environmen...

Foreign investment, international mergers and the 1993 capital income tax reform in Finland

OpenAIRE

Hannu Piekkola

1995-01-01

Foreign direct investment in Finland and the 1993 Finnish Capital Income Tax Reform are examined in this article. Under territorial taxation, the most common form of international double taxation relief; the tax reform will encourage new capital investment. New capital investment from the US, which applies worldwide taxation, would be mildly discouraged, and FDI in the form of mergers and acquisitions largely discouraged. In the UK and Japan, the worldwide principle only covers tax rates. Thu...

Foreign Direct Investment and the Survival of Domestic Private Firms in Viet Nam

DEFF Research Database (Denmark)

Kokko, Ari; Thang, Tran Toan

2014-01-01

Foreign direct investment (FDI) may benefit local firms in the host country through various kinds of spillovers, but it may also raise competition and result in the crowding out of domestic firms. Using detailed firm-level data for the period 2001–2008, this paper examines the aggregate effect...... significantly, while downstream FDI may reduce the hazard. The presence of SOEs has a direct negative effect on the survival odds of local private firms in the same industry, but there is also an indirect impact on the exit hazard from FDI. Local firms are more vulnerable to foreign entry in sectors with high...

Not Just for Americans: The Case for Expanding Reciprocal Tax Exemptions for Foreign Investments by Pension Funds

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Jack M. Mintz

2014-11-01

Full Text Available From provision of OAS, GIS and CPP to the favourable taxation of Registered Pension Plans and RRSPs , Canada’s government has long focused policy efforts on better ensuring that working Canadians approach retirement with sufficient income supports in place. If the government wants to continue to move in this direction by trying to help maximize returns to pension plan members, while decreasing the portfolio risks faced by those pension plans, one step it could consider would be: Expanding the exemption for withholding taxes on foreign dividends and interest earned by pension plans. The exemptions for foreign interest and dividends are already available to U.S. investments, part of a reciprocal arrangement spelled out in the Canada-U.S. Tax Convention. Those exemptions allow U.S. and Canadian pension funds to participate in cross-border investments that would otherwise be too costly. Pension funds rely on international investments to optimize diversification and returns. And tax conventions between countries are typically designed to protect investors from the participating countries from being double taxed by both their resident country and the foreign jurisdiction where they invest. This good policy has certainly been Canada’s model in its numerous bilateral tax treaties. But while the U.S.-Canada Tax Convention extends the benefit of tax exemption to dividends and interest earned from cross-border investments by tax-exempt pension funds, when it comes to all other countries, there is no equivalent result. Yet, aspects of these same exemptions exist in certain bilateral treaties between other countries in treaties with one another. That certainly suggests that there are other trading partners, besides just the U.S., that are open to the possibility of these particular exemptions. If Canada could negotiate broadening these exemptions to countries beyond the United States, it would realize important advantages with little cost. By not moving

Canada’s Foreign Direct Investment Challenge: Reducing Barriers and Ensuring a Level Playing Field in the Face of Sovereign Wealth Funds and State-Owned Enterprises

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Matt Krzepkowski

2010-10-01

Full Text Available Recent takeovers – and attempted takeovers – of strategic resource companies have renewed concerns that some of Canada’s prized corporate players are falling into foreign hands. However, data shows that Canada has not been a significant attractor of multinational investment, lagging behind a number of developed and developing nations. Indeed, since the mid-1990s, Canada has been a net exporter of capital in world markets, as foreign direct investment by Canadian companies far outpaced the inflow of foreign capital. Rather than being hollowed out, we are hollowing out other countries. As a general policy, Canada should reduce barriers to foreign direct investment and welcome our growing role in international markets. As many studies have shown, foreign direct investment brings significant net benefits to the Canadian economy, including knowledge transfers, new management, better wages and productivity. Only in limited circumstances, such as in the case of protecting Canada’s national security, should Canada block foreign takeovers of Canadian companies. In the interest of neutrality and minimizing economic distortions, takeovers of Canadian companies by foreign sovereign wealth funds or state-owned enterprises should be reviewed on a case-by-case basis. When state-owned enterprises have similar commercial objectives and operate on a level-playing field without financial support by state owners, they could also provide net benefits to the Canadian economy. One important area that requires further consideration is with respect to the tax-exempt status of sovereign wealth funds and state-owned companies. Canadian tax treaties should be reviewed to ensure that Canadian withholding taxes maintain an even playing field among private and state-owned businesses operating in Canada.

Response of Foreign Private Investment to Public Debt in Nigeria

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Emenike Kalu O.

2015-06-01

Full Text Available The study investigates the long-term relationship and dynamic short-term impact of public debt on foreign private investment for a developing country – Nigeria during the period 1962 to 2012. The paper deploys cointegration model to examine long-term relationship between the variables. The study also examines dynamic short-term impact and causality between public debt and foreign private investment using the VECM and Granger causality test. The study further examines the response paths of foreign private investment variable due to public debts shocks using variance decomposition. The results confirm absence of long-term relationship between public debt and foreign private investment in Nigeria. The results also show that external debt has negative impact on foreign private investment in the short-term. Finally, the results show that there is no causality between foreign private investment and public debt. The major economic implication of these findings is for debt management authorities to be conscious of growing external debts as it discourages foreign private investments into Nigeria.

National policy measures. Right approach to foreign direct investment flows

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Cătălin-Emilian HUIDUMAC-PETRESCU

2013-02-01

Full Text Available 2011 was a difficult year for all the countries, developed and emerging ones. For overcoming the negative effects of the financial crisis, many economies have established as purpose to adopt new economic policies regarding the foreign direct investment flows (FDI, even to stimulate the flows or to reduce it (protectionism measures. So, there can be identified two categories of national policies: measures for the FDI flows stimulation and measures whose aim was the weighting of FDI developing, through restriction and regulation. In the first category we could include the liberalization measures and promotional and faciletation policies. In this study we evidenced that the fundament of the second category of policies is the belief that the FDI outward lead to job exports, to a raise of unemployment and a weakness of the industrial base.Many reports on FDI flows, here we talk about those made by UNCTAD, show that the regulation and restriction policies are seen as a possible protectionism, especially in the agricultural and extractive industries, where there have been required nationalization processes and divestments. Even more, the economies which adopted this kind of policies have been less interested in investing abroad, the outward of FDI being affected and globally the total outward decreased.

Changes in the demand for private medical insurance following a shift in tax incentives.

Science.gov (United States)

Rodríguez, Marisol; Stoyanova, Alexandrina

2008-02-01

The 1998 Spanish reform of the Personal Income Tax eliminated the 15% deduction for private medical expenditures including payments on private health insurance (PHI) policies. To avoid an undesired increase in the demand for publicly funded health care, tax incentives to buy PHI were not completely removed but basically shifted from individual to group employer-paid policies. In a unique fiscal experiment, at the same time that the tax relief for individually purchased policies was abolished, the government provided for tax allowances on policies taken out through employment. Using a bivariate probit model on data from National Health Surveys, we estimate the impact of said reform on the demand for PHI and the changes occurred within it. Our findings indicate that the total probability of buying PHI was not significantly affected by the reform. Indeed, the fall in the demand for individual policies (by 10% between 1997 and 2001) was offset by an increase in the demand for group employer-paid ones. We also briefly discuss the welfare effects on the state budget, the industry and society at large.

Financial Incentives to Promote Active Travel

Science.gov (United States)

Martin, Adam; Suhrcke, Marc; Ogilvie, David

2012-01-01

Context Financial incentives, including taxes and subsidies, can be used to encourage behavior change. They are common in transport policy for tackling externalities associated with use of motor vehicles, and in public health for influencing alcohol consumption and smoking behaviors. Financial incentives also offer policymakers a compromise between “nudging,” which may be insufficient for changing habitual behavior, and regulations that restrict individual choice. Evidence acquisition The literature review identified studies published between January 1997 and January 2012 of financial incentives relating to any mode of travel in which the impact on active travel, physical activity, or obesity levels was reported. It encompassed macroenvironmental schemes, such as gasoline taxes, and microenvironmental schemes, such as employer-subsidized bicycles. Five relevant reviews and 20 primary studies (of which nine were not included in the reviews) were identified. Evidence synthesis The results show that more-robust evidence is required if policymakers are to maximize the health impact of fiscal policy relating to transport schemes of this kind. Conclusions Drawing on a literature review and insights from the SLOTH (sleep, leisure, occupation, transportation, and home-based activities) time-budget model, this paper argues that financial incentives may have a larger role in promoting walking and cycling than is acknowledged generally. PMID:23159264

Foreign direct investments into French real estate

OpenAIRE

BRIZARD, Arthur

2013-01-01

The purpose of this thesis is to draw the global trend of Foreign Direct Investments (FDI) in the French real estate market since 2008 and to understand foreign investors’ behavior and the incentives which urge them to invest in French property market. This study relies on the numerous yearly reports released by consulting and real estate companies and gives an overview of FDI since 2008. From a legal point of view, the French property market is extremely organized. Acquiring, holding and sel...

Globalisation, Trade Openness and Foreign Direct Investment in Romania

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Dima Stela

2016-11-01

Full Text Available The paper analyses the trend of globalisation, trade openness and foreign direct investments (FDI in Romania and the link between them in the last 25 years. Data from UNCTAD, World Bank and KOF globalisation index were used in econometrical models testing the link between globalisation, trade openness and foreign direct investment. A strong positive and statistical validated link is found between globalisation and FDI, between trade openness and FDI, and between FDI and globalisation. In the context of Romanian economy, these three phenomena are interrelated and each of them is acting to potentiate the effect of the other. Moreover, a multivariate regression analysis emphasized the dependency between globalisation index and foreign direct investment, trade openness and market capitalisation. These results can be taken into account when national policies aiming to attract FDI and stimulating export-import activities are designed.

In praise of tax havens: international tax planning and foreign direct investment

OpenAIRE

Hong, Qing; Smart, Michael

2007-01-01

The multinationalization of corporate investment in recent years has given rise to a number of international tax avoidance schemes that may be eroding tax revenues in industrialized countries, but which may also reduce tax burdens on mobile capital and so facilitate investment. Both the welfare effects of and the optimal response to international tax planning are therefore ambiguous. Evaluating these factors in a simple general equilibrium model, we find that citizens of high-tax countries be...

R&D tax incentives for innovation and managerial decisions

Directory of Open Access Journals (Sweden)

Monika Walicka

2016-09-01

Full Text Available In many countries tax incentives are a popular means of realizing political, economic and social objectives. The main motive of their application is often to achieve and accelerate the selected activities in the public interest and also stimulate development of industry, and induce growth in research and investment. The key element that helps a company achieve a competitive advantage is innovation. Global competition forces the production of unique products and services. Tax incentives in science, research and development are important in stimulating innovation. The purpose of this article is to show the level of managerial awareness about R&D tax incentives, the level of R&D tax incentive usage by companies in Poland, and main obstacles that managers meet with R&D tax incentives in practice. We explore R&D tax incentives as a government instrument on R&D management and aim to find the reasons why Polish companies do not take advantage of them. We examine 275 companies using a semi-structured questi onnaire. Our findings suggest that many firms report lack of knowledge about such incentives, and firms find many obstacles to reach all of the requirements which are necessary to use the incentive. Due to our analysis we find that large firms, especially those that implement innovation, are more likely to use the tax incentives, but small and medium sized companies find more obstacle. The effect of this tax policy is significant mainly in large, high-tech sector firms.

Foreign direct investment in China

OpenAIRE

Bredero, Q.S.

2007-01-01

Foreign Direct Investment in China is one of the most comprehensive studies of FDI in China and provides a remarkable background of information on the evolution of China’s FDI policies over the last 30 years.

Foreign Remittances, Foreign Direct Investment, Foreign Imports and Economic Growth in Pakistan: A Time Series Analysis

Directory of Open Access Journals (Sweden)

Muhammad Tahir

2015-10-01

Full Text Available This empirical research paper focuses on establishing a relationship between external determinants and economic growth of Pakistan economy. Empirical analyses are carried out with time series econometric techniques using data over the period of 1977-2013. The main finding is that external determinants such as foreign remittances, foreign direct investment, and foreign imports matter from a growth perspective. Foreign remittances and foreign direct investment have a significant positive role in the growth process of Pakistan economy. Furthermore, it is found that foreign imports have adversely influenced the economic growth of Pakistan. The study recommends that policy makers shall take appropriate steps to increase the inflow of both foreign remittances and foreign direct investment in order to achieve the long run economic growth.

EXTENSIVE ROLE OF FOREIGN DIRECT INVESTMENT IN DEVELOPMENT OF INDIAN ECONOMY

Directory of Open Access Journals (Sweden)

Amit Saini

2016-12-01

Full Text Available Since 2001, the extensive growth in domestic economy were potentially associated with the scale of foreign direct inflows that were largely interconnected with industrial growth, re-shuffling investment policies, and availability of large market size in India. However, the government remained much restrictive earlier in these issues to protect the domestic entrepreneurs along with to promote the self-efficacy among individuals. Within this framework, this paper is being prepared to observe the degree of effect of foreign direct investment inflow over successive economic parameters such as gross domestic product and Export. Moreover, to define such interconnection, the generalized linear model econometric model has been developed to analyze the overall effect and uni-variate effect over three categorical factors i.e. country, year and foreign direct investment itself. Finally, the results shown, the consistent foreign direct investment inflows is the result of successive years that led to increase the prestige of gross domestic products and Export in many folds during a period from 2000 to 2012.

Generating private co-investments in area-based urban regeneration: Lessons from Denmark

DEFF Research Database (Denmark)

Jensen, Jesper Ole; Larsen, Jacob Norvig; Storgaard, Kresten

a factor 5 times higher than the public investments in the areas, in terms of urban regeneration subsidies. Private investments, however, might cover different property investment strategies: ‘Passive management’, ‘active management’ and ‘development’. We suggest that for the urban regeneration areas......In recent years, public-private collaboration as well as private co-investments has been intensely promoted in Danish area-based urban regeneration policy and programmes. The paper will discuss to which extent these ambitions have been full-filled, and what has actually attracted private...... investments to the urban regeneration areas. The paper is based on evaluations of the Danish area-based regeneration programmes, as well as research on private investments in selected urban regeneration areas. Our research shows that area-based urban regeneration in average generates private investments...

Reasons Why it is Beneficial to Invest in Republic of Kosovo

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Nakije Kida

2014-06-01

Full Text Available The purpose of this paper is to examine the role of Foreign Direct Investment (FDI in economic development through the development of the country that has the potential sectors. The effect of technology in these sectors had risen sector and area that until then had remained neglected. The paper investigates the impact of foreign direct investment (FDI in economic growth using detailed sectoral FDI in Kosovo during the period 2000-2013. Sectors considered are: Agribusiness, Tourism, forestry, services, manufacturing, mining, energy, construction, wholesale and retail trade, hotels and restaurants, transport, telecommunications and other sectors. The negative effect of extractive industries in creating income and environmental pollution in Kosovo is not surprising. FDI in manufacturing industries by stimulating exports generate more income. FDI are likely to repatriate their profits but are likely to increase employment. To ensure legal protection for foreign investors, have signed an agreement with the Agency Multilateral Investment Guarantee (MIGA, the avoidance of double taxation, taxes are the lowest in Europe. Investment Promotion Agency of Kosovo (IPAK, the level of government makes the promotion of Kosovo. As a developing country taking the time information is more difficult but efforts in this direction are great.

Corporate Tax Stimulus and Investment in Colombia

OpenAIRE

Galindo, Arturo; Melendez, Marcela

2010-01-01

This paper uses a yearly dataset of plant-level investment in Colombian firms during the period 1997 to 2007 to assess the impact of a tax incentive for firms that invest in fixed assets implemented in 2004. A positive and statistically significant correlation is found between the boom observed in investment and the adoption of the tax policy. However, the correlation vanishes when year-specific effects are controlled for. This result is robust to changes in the empirical specification, chang...

External Finance and the Foreign Direct Investment Decision: Evidence from Privately-Owned-Enterprises in China

OpenAIRE

Duanmu, J-L

2015-01-01

Access to external finance is found to be a statistically significant factor explaining the probability of privately owned enterprises (POEs) in China undertaking foreign direct investment (FDI). The significance of external finance is magnified in industries featuring a heavy dependence on external finance, high technology, low tangibility, and high inventory. The external finance and FDI linkage is weaker for POEs with group affiliation, but stronger for those with generous employment welfa...

76 FR 42038 - Determining the Amount of Taxes Paid for Purposes of the Foreign Tax Credit

Science.gov (United States)

2011-07-18

... investment condition''). The direct investment condition requires that the U.S. party's share of the foreign...) of this section if the foreign payment were an amount of tax paid. (3) Direct investment. The U.S... claim direct and indirect foreign tax credits. DATES: Effective Date: These regulations are effective on...

The scope of foreign direct investment in South Eastern Europe and the economy of SCG

Directory of Open Access Journals (Sweden)

Beslać Milan

2006-01-01

Full Text Available Foreign direct investments have had a long tradition in the modern Serbian history. The influence of the foreign capital on the Serbian economy was particularly expressed in the period between the two World Wars, when France England, Belgium, Germany and even Russia invested into Serbia. After World War II, until the end of the sixth decade, foreign direct investments were not stipulated in the legal regulations. In the last decade of the twentieth century and at the beginning of the twenty-first, the inflow of foreign direct investments has been provided for through the economy transformation and privatization process. In the last three years, privatization has been oriented only to sale and inflow of foreign capital, while the reverse process, i.e. investment into foreign countries (outflow, has been totally neglected. Therefore, orientation only to the FDI inflow constitutes both an opportunity and an obstacle to intensive economic development. Along with that, the following laws have not been passed yet: Law on Denationalization Law on Investment Funds and Law on Takeover of Joint-Stock Companies. Such laws will ensure completion of the privatization process and create an ambience for intensive economic development.

Particularities Regarding the Evolution and Role of Foreign Direct Investments in Romania’s Economy

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Ion Botescu

2016-01-01

Full Text Available Criticized by some, praised by others foreign direct investments are a financial flow with amajor impact on the economies of many countries. In an increasingly globalized world, the processthrough which multinationals open production and distribution branches over the entire surface ofthe globe is something as natural as possible. After the fall of communism in Europe, Romania has been a favorite destination for manyforeign investors, fact which requires a careful analysis on the dynamics and structure of foreigndirect investment flows attracted by Romania. I have also tried to highlight the nature of the linkbetween the flow of foreign direct investment attracted by Romania and the variations recorded inthe economic development of our country. Given all the positive and negative aspects presented, foreign direct investments are a realityfor Romania, and future policies promoted in the area should stimulate the entry foreign capitalfirms whose work will generate a high level of content of knowledge and technology directlyimpacting the improvement of the economic efficiency at national level.

DIRECT FOREIGN INVESTMENTS AND THE LACK OF POSITIVE EFFECTS ON THE ECONOMY

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Suzana Djordjevic

2015-12-01

Full Text Available In recent years, Croatia was interesting to investors in attracting foreign direct investment. One of the objectives of this research was to deal with their negative effects. Most of invested capital was invested in brownfield investments, i.e. in taking over the ownership share of companies through privatization. Consequently, revenues were spent to settle financial debts and not on the growth and development of competitiveness. According to economic theory, foreign direct investments have a positive impact on the economic growth of the recipient country. This paper attempts to answer the question: ‘Is the economic theory confirmed in the Croatian case?’ The aim is to analyse the impact of foreign direct investments on the economic growth of Croatia in the period from 1999 to 2014. The paper analyses the impact that direct foreign investments had on the unemployment rate, GDP per capita and export using the model of linear regression.

The Influence of Implicit Tax in Making Profitable Foreign Direct Investment Decisions: Evidence of Indonesian Listed Companies in All Sectors

OpenAIRE

Angelina Tiffany Iskandar; Melinda Haryanto

2015-01-01

The aim of this study was to test whether the implicit tax has an influence ontax explicitly in the context of Foreign Direct Investment for the companies listed onthe Indonesia Stock Exchange 2010-2013. The study sample as many as 34 companies,net of outlier as much as 6 data, the sample to 130 data. This study uses multipleregression. The results showed that the implicit tax that does not have a significantpositive influence on the explicit tax. This is because the role of tax planning andf...

ATTRACTING FOREIGN DIRECT INVESTMENT IN TRANSITION ECONOMIES WITH SPECIAL REFERENCE TO THE REPUBLIC OF MACEDONIA

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Marija Gogova Samonikov

2013-07-01

Full Text Available The focus of this paper is an analysis of foreign direct investment and their impact and scale in countries in transition, with special reference to Macedonia. The main aim of this article is to show the investment in Macedonia, in the period before and after the crisis of 2007 and to provide guidance for future activities that will help improve the economic situation in general. The results show that the Macedonian economy is especially supported by active government action on this issue. Government and its activities significantly improve the position of Macedonia in relation to neighboring countries, but there are still areas that need to act. Such domain infrastructure is an issue that would fulfill the image of Macedonian policy for attracting foreign investors. The conclusion is that despite all activities there are determinants that affect traditional markets. The most important of them is the level of gross domestic product. Macedonia has taken many measures to increase the level of GDP and in the level of attracting foreign capital has introduced tax benefits, customs benefits and other benefits with which is competitive with neighboring countries. However, GDP and employment are still not satisfactorily reflected.

A New Trend of Foreign Direct Investment and Sustainable Growth of Emerging Economies

Directory of Open Access Journals (Sweden)

Pradeep Kumar

2016-07-01

Full Text Available With the rise of globalisation concept, the opportunity of going global for companies has become so influential that many of the companies that are doing well in the home country are staring up their businesses in other countries to maximise the profit. The trend of investing in other economies has become very popular that's why the trend of foreign direct investment between developed and developing economies has not only been increased but significantly a new trend has emerged for foreign direct investment among developing to developing economies. It has been seen that foreign direct investment (FDI as foreign capital is playing very wider and important role in the socio-economic development of a nation. Evidently, it played an important role to the development of the developed nations, and playing a significant role in the development of the number of developing nations. Today, FDI is considered to be the core incentive for economic and social development as far as the developing nations are concerned.

Determinants of private fixed investment in emerging country

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Goitsemodimo Abel Molocwa

2018-03-01

Full Text Available The neoclassical and Keynesian theories regard private investment not only as a source of economic growth but also as a determinant of the potential extent of the national income. The aim of this research was to examine the determinants of private fixed investment in South Africa by employing the Johansen cointegration technique and the vector error correction model (VECM analysis. Based on the literature survey it appears that the previous studies mainly focused on private investment in manufacturing and infrastructure sectors therefore this is envisaged to add knowledge to a body of economics literature in this area by focusing more on private fixed investment and its determinants in South Africa. The study concludes that for the period under investigation GDP has the positive sign as expected. This suggests that in the long run it impact positively on private fixed investment. The findings of the study also confirmed that tax rate is a complementary to private fixed investment. Similarly, the real exchange rate coefficient was negative as expected which suggests that the depreciation of the currency stimulates the growth of South Africa private fixed investment. It is obvious that even the best economic model cannot achieve the expected outcomes immediately but these results encourage the study to believe that the South African monetary policy on exchange rate complements private fixed investment. Therefore, the study proposes that both even though both growth and general tax rate are difficult to accomplish simultaneously, they should be used to promote the flow of private fixed investment in South Africa.

Tax incentives and enhanced oil recovery techniques

International Nuclear Information System (INIS)

Stathis, J.S.

1991-05-01

Tax expenditures-reductions in income tax liability resulting from a special tax provision-are often used to achieve economic and social objectives. The arguments for petroleum production tax incentives usually encompass some combination of enhancing energy security, rewarding risk, or generating additional investment in new technologies. Generally, however, some portion of any tax expenditure is spend on activities that would have occurred anyway. This paper is a review of tax incentives for petroleum production found two to be of questionable merit. Others, including tax preferences for enhanced oil recovery methods, which offered the potential for better returns on the tax dollar. Increased use of enhanced oil recovery techniques could lead to additional environmental costs, however, and these need to be factored into any cost-benefit calculation

Issues in the Design of Saving and Investment Incentives

OpenAIRE

David F. Bradford

1981-01-01

This paper examines the characteristics of and interactions among measures to effect saving and investment incentives ("S-I incentives")in the context of an income tax system that is inadequately indexed for inflation. Examples are proposals for more rapid depreciation of buildings and equipment and proposals to exempt larger amounts of interest income. SI incentives are classified into "consumption tax" and "direct grant" types, and it is shown that these differ in their influence on portfol...

Foreign Direct Investment from China in the Regions of Russia: Are They Substitutes or Compliments of Foreign Trade?

Directory of Open Access Journals (Sweden)

Alina Nikolaevna Novopashina

2012-12-01

Full Text Available The study summarizes theoretical approaches explaining the conditions under which foreign direct investment (FDI can complement or substitute foreign trade depending on investment incentives. The author examines the example of investment and trade cooperation between cross-border and internal regions of Russia and China. Using regression analysis of China’s FDI impact on the foreign trade of Russian regions with China the author concludes that cross-border regions can attract China’s FDI because of their comparative advantages. The paper also employs FDI localization ratios in cross-border and internal regions and the structure of China’s FDI by different activities. The study shows that FDI from China can complement foreign trade with China in cross-border regions. However internal regions attract FDI from China mostly because of access to their home markets, and in this case FDI are substitutes of foreign trade with China

Tax policy

International Nuclear Information System (INIS)

1990-07-01

This report contains information on the effects of additional tax incentives for the petroleum production industry. It considers the effects of additional incentives on petroleum production and federal revenues, the federal tax burden on new domestic petroleum production investments under current law, and the comparative tax treatment of petroleum production investments in the United States and other nations

Capital Accumulation in a Region. Cooperatives Versus Foreign Direct Investments

Directory of Open Access Journals (Sweden)

Zimnoch Krystyna

2016-09-01

Full Text Available The main aim of this article is to demonstrate the ability of cooperatives to create internal resources of a region through foreign direct investments and the creation of financial, physical, human, and social capital. It concerns the comparing and emphasizing of the stability of resources created in a region by these forms of action. In order to demonstrate the stability of internal resources of a region, generated through foreign direct investment, a research was conducted involving the analysis of the rankings of the largest foreign investors in Poland, statistical data from the Central Statistical Office and the NBP, showing the inflow and outflow of FDIs, the number of companies with foreign capital participation, and the number of people working in them. In addition, a case study was used for the regions where the investments have been withdrawn, showing the importance of cooperatives for the stabilization of the potential of the regions. The study shows that the transfer of FDIs is always guided by the maximization of profit, tax optimization of a location, and the native currency exchange rate fluctuations. The following consequences of withdrawal have no significance to foreign investors but affect the regions: the increase in the unemployment rate, the reduction in the income of local residents, the increase in debt, the acquisition of real estate purchased on credit. The case study shows that cooperative enterprises can replace foreign capital in the region, ensuring the stability and durability of its internal resources. The concepts and strategies for regional development should focus on cooperatives as a way to create the internal resources of a region, which are seen as the current development source. Co-operatives can prevent the leaching of resources and backwash effects. The economic policy must ensure the equal treatment of all of the entities investing in the region. Currently, Poland gives the priority to foreign investors

An Analysis of U.S. Foreign Direct Investment Policy and Economic Development. A.I.D. Discussion Paper No. 36.

Science.gov (United States)

Bergsten, C. Fred; De Castro, Bruce

The purpose of the paper is to analyze U.S. policies toward financial investment in developing nations. The paper is presented in two sections. In section I, the controversial effects of direct foreign investment on development are discussed. Case studies of investment policies toward India, the Philippines, Ghana, Guatemala, and Argentina are…

Transnational Tobacco Company Influence on Tax Policy During Privatization of a State Monopoly: British American Tobacco and Uzbekistan

Science.gov (United States)

Gilmore, Anna; Collin, Jeff; Townsend, Joy

2007-01-01

Objectives. The International Monetary Fund encourages privatization of state-owned tobacco industries. Privatization tends to lower cigarette prices, which encourages consumption. This could be countered with effective tax policies. We explored how investment by British American Tobacco (BAT) influenced tax policy in Uzbekistan during privatization there. Methods. We obtained internal documents from BAT and analyzed them using a hermeneutic process to create a chronology of events. Results. BAT thoroughly redesigned the tobacco taxation system in Uzbekistan. It secured (1) a reduction of approximately 50% in the excise tax on cigarettes, (2) an excise system to benefit its brands and disadvantage those of its competitors (particularly Philip Morris), and (3) a tax stamp system from which it hoped to be exempted, because this would likely facilitate its established practice of cigarette smuggling and further its competitive advantage.. Conclusions. Privatization can endanger effective tobacco excise policies. The International Monetary Fund should review its approach to privatization and differentiate the privatization of an industry whose product kills from privatization of other industries. PMID:17138915

Financial incentives to promote active travel: an evidence review and economic framework.

Science.gov (United States)

Martin, Adam; Suhrcke, Marc; Ogilvie, David

2012-12-01

Financial incentives, including taxes and subsidies, can be used to encourage behavior change. They are common in transport policy for tackling externalities associated with use of motor vehicles, and in public health for influencing alcohol consumption and smoking behaviors. Financial incentives also offer policymakers a compromise between "nudging," which may be insufficient for changing habitual behavior, and regulations that restrict individual choice. The literature review identified studies published between January 1997 and January 2012 of financial incentives relating to any mode of travel in which the impact on active travel, physical activity, or obesity levels was reported. It encompassed macroenvironmental schemes, such as gasoline taxes, and microenvironmental schemes, such as employer-subsidized bicycles. Five relevant reviews and 20 primary studies (of which nine were not included in the reviews) were identified. The results show that more-robust evidence is required if policymakers are to maximize the health impact of fiscal policy relating to transport schemes of this kind. Drawing on a literature review and insights from the SLOTH (sleep, leisure, occupation, transportation, and home-based activities) time-budget model, this paper argues that financial incentives may have a larger role in promoting walking and cycling than is acknowledged generally. Copyright © 2012 American Journal of Preventive Medicine. Published by Elsevier Inc. All rights reserved.

Stimulation of investment in international energy through Nigerian tax exemption laws

International Nuclear Information System (INIS)

Osimiri, U.J.

2002-01-01

This article assesses the impact of recent tax exemption legislation as a vehicle for the attraction of investment in the quest for the development of international energy in Nigeria, particularly oil and gas. It seeks to argue that generous tax incentives are the most successful method of inducement of foreign investors, judging from the rising profile in the expansion of investment in the gas sector and the attendant increase in world trade. It attempts to assert that tax incentives alone, without the combination of other favourable factors, like political stability, observance of the rule of law and deregulation or trade liberalisation, cannot produce the desired result of local industrialisation and integration into the world economy. (author)

Role of Tax Instruments in Investment and Innovation Strategy of Development of Ukraine

Directory of Open Access Journals (Sweden)

Demchyshak Nazar B.

2014-02-01

Full Text Available The article speaks about problems of formation of the investment and innovation potential in Ukraine. It identifies priority of development and introduction of the investment and innovation strategy for the national economy. It studies the role of state stimulation of the investment and innovation activity using direct and indirect methods. It considers foreign experience of tax stimulation of innovation activity. It analyses application of different tax preferences by different foreign states. It shows positive and negative sides of preferential taxation under conditions of financial instability of Ukrainian economy. In order to identify the level of investment activity the article analyses dynamics of change of the investment attractiveness index and shows problem aspects of attraction of foreign investments into the national economy. It identifies priorities of formation of efficient investment and innovation strategy of development of economy on the basis of a common system approach.

Fiscal Paradise: Foreign Tax Havens and American Business

OpenAIRE

James R. Hines, Jr.; Eric M. Rice

1990-01-01

The offshore tax haven affiliates of American corporations account for more than a quarter of US foreign investment, an nearly a third of the foreign profits of US firms. This paper analyzes the origins of this tax haven activity and its implications for the US and foreign governments. Based on the behavior of US fins in 1982, it appears that American companies report extraordinarily high profit rates on both their real and their financial investments in tax havens. We calculate from this beh...

26 CFR 1.1247-4 - Election by foreign investment company with respect to foreign tax credit.

Science.gov (United States)

2010-04-01

... year of the company, as (b) the fair market value of all shares of stock of the company held by such... 26 Internal Revenue 11 2010-04-01 2010-04-01 true Election by foreign investment company with... Capital Gains and Losses § 1.1247-4 Election by foreign investment company with respect to foreign tax...

An Information-Based Trade Off between Foreign Direct Investment and Foreign Portfolio Investment

OpenAIRE

Itay Goldstein; Assaf Razin

2005-01-01

The paper develops a model of foreign direct investments (FDI) and foreign portfolio investments (FPI).The model describes an information-based trade off between direct investments and portfolio investments. Direct investors are more informed about the fundamentals of their projects. This information enables them to manage their projects more efficiently. However, it also creates an asymmetric-information problem in case they need to sell their projects prematurely, and reduces the price they...

FOREIGN DIRECT INVESTMENT IN POST-CONFLICT COUNTRIES: THE CASE OF IRAQ’S OIL AND ELECTRICITY SECTORS

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Ghassan Faraj Hanna

2014-04-01

Full Text Available Foreign direct investment is new phenomenon to Iraq, a post conflict country with abundance of natural resources. With dominant state-controlled public sector, attracting foreign investment is an added challenge to an economy devastated by years of wars. A qualitative case study was conducted to assess determinants of foreign direct investment in Iraq’s energy sector. Data was collected from interviews with business and government subject matter experts, and a review of publically available documents. Lack of security, political instability, corruption, and inadequate government policies towards foreign direct investment as symptoms found and typically shared by other post-conflict countries. The persistence of violence was not seen as a deterrent; however, foreign direct investment activity in the energy sector was virtually limited to the semi-autonomous region of Kurdistan. Investments were either wholly-owned or joint-venture enterprises. Implications to other post conflict countries, using Kuwait and Nigeria as illustrative examples, are presented and recommendations made.

Geothermal Brief: Market and Policy Impacts Update

Energy Technology Data Exchange (ETDEWEB)

Speer, B.

2012-10-01

Utility-scale geothermal electricity generation plants have generally taken advantage of various government initiatives designed to stimulate private investment. This report investigates these initiatives to evaluate their impact on the associated cost of energy and the development of geothermal electric generating capacity using conventional hydrothermal technologies. We use the Cost of Renewable Energy Spreadsheet Tool (CREST) to analyze the effects of tax incentives on project economics. Incentives include the production tax credit, U.S. Department of Treasury cash grant, the investment tax credit, and accelerated depreciation schedules. The second half of the report discusses the impact of the U.S. Department of Energy's (DOE) Loan Guarantee Program on geothermal electric project deployment and possible reasons for a lack of guarantees for geothermal projects. For comparison, we examine the effectiveness of the 1970s DOE drilling support programs, including the original loan guarantee and industry-coupled cost share programs.

Analysis Of Supporting Factors On Foreign Direct Investment And Its Impact Toward Indonesian Employment And Export Performance Period 2005-2015

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Suharto

2017-09-01

Full Text Available This research analyzes effects of foreign direct investment and Its Impact toward employment and export performance in Indonesia 2005-2015. This research with secondary data focuses on the Supporting factors in which attract foreign direct investment into Indonesia. This research focused on the problem First the impact of labor export results economic growth rate exchange rate inflation rate interest rate and tax toward foreign direct investment second the impact of foreign direct investment on the expansion of employment and export performance in Indonesia during the period 2005-2015. The result of this research explains that variables of human resourceslabor and export performance give positive effect as significantly to attracting foreign direct investment in Indonesia. While foreign direct investment in Indonesia gives positive effect to employment creation and to export performance.

IMPACT OF FOREIGN DIRECT INVESTMENTS ON CROATIAN FINANCIAL GROWTH

Directory of Open Access Journals (Sweden)

Zoran Ivanovic

2014-12-01

Full Text Available Foreign direct investments are for the transition and less developed countries very important source of capital. Such investments have very positive impact on country’s economy in terms of employment growth, industrial production growth, gross domestic product growth, favorable effects on the balance of payments and many other positive impacts for country economy, so it’s not strange that countries in the absence of its domestic investors, are trying to attract foreign investors. Foreign investors analyze in detail possibilities and risks of each country, and if the risks exceed the opportunities there will be no inflow of foreign capital. Therefore every country which is trying to attract foreign direct investments must take care about the policy and its economy and try to be most attractive as it can be.

Tax incentives in emerging economies

OpenAIRE

Brodzka, Alicja

2013-01-01

Emerging economies have introduced tax incentives for various reasons. In some countries in transition, such instruments may be seen as a counterweight to the investment disincentives inherent in the general tax system. In other countries, the incentives are intended to offset other disadvantages that investors may face, such as a lack of infrastructure, complicated and antiquated laws, bureaucratic complexities and weak administration. The article brings closer the issue of tax incentives of...

Impact of public policy uncertainty on renewable energy investment: Wind power and the production tax credit

International Nuclear Information System (INIS)

Barradale, Merrill Jones

2010-01-01

It is generally understood that the pattern of repeated expiration and short-term renewal of the federal production tax credit (PTC) causes a boom-bust cycle in wind power plant investment in the US. This on-off pattern is detrimental to the wind industry, since ramp-up and ramp-down costs are high, and players are deterred from making long-term investments. It is often assumed that the severe downturn in investment during 'off' years implies that wind power is unviable without the PTC. This assumption turns out to be unsubstantiated: this paper demonstrates that it is not the absence of the PTC that causes the investment downturn during 'off' years, but rather the uncertainty over its return. Specifically, it is the dynamic of power purchase agreement (PPA) negotiations in the face of PTC renewal uncertainty that drives investment volatility. With contract negotiations prevalent in the renewable energy industry, this finding suggests that reducing uncertainty is a crucial component of effective renewable energy policy. The PTC as currently structured is not the only means, existing or potential, for encouraging wind power investment. Using data from a survey of energy professionals, various policy instruments are compared in terms of their perceived stability for supporting long-term investment. - Research highlights: →The case of wind energy investment in the face of PTC uncertainty provides an important study in how industry structure, and in particular the process of contract negotiations, can amplify the impact of public policy uncertainty on corporate investment. →The finding that contract negotiations in the face of uncertainty are sufficient in themselves to hinder investment implies that the assumption that investment downturns reflect unfavorable economics is unfounded. This assumption falsely discourages interest and investment in wind energy. →Policy stability should be added to the list of criteria explicitly considered in designing policy

A Dynamic Growth Model for Flows of Foreign Direct Investment

OpenAIRE

Yi-Hui Chiang; Yiming Li; Chih-Young Hung

2007-01-01

In this work, we for the first time study the dynamic flows of the foreign direct investment (FDI) with a dynamic growth theory. We define the FDI flow as a process which transmits throughout a given social system by way of diverse communication channels. In model formulation, seven assumptions are thus proposed and the foreign capital policy of the host country is considered as an external influence; in addition, the investment policy of the investing country is modeled as an internal influe...

The pioneer income tax relief as an investment incentive in Nigeria ...

African Journals Online (AJOL)

Taxation is one of the major fiscal policy instruments used by government in regulating the economy, boosting investments and regulating inflation. Many developing nations formulate tax policies aimed at stimulating rapid economic growth. One of such policies in Nigeria is the Pioneer Income Tax Relief with the main goal ...

Direct foreign investment: a migration push-factor?

Science.gov (United States)

Sassen-koob, S

1984-01-01

Policymakers and analysts now recognize that US military activities abroad contribute to the creation of refugee flows into the US. Previously, immigration into the US was viewed as a result of inept and failed domestic policies in the countries of origin. Results show that recent immigrants to the US come from countries with neither the poorest nor the largest population growth rate in the less developed world. However, the sending countries received US direct foreign investment (DFI) in the 1970s, particularly labor intensive investment in export manufacturing. Significant levels and concentrations of DFI promote emigration through: 1) the incorporation of new segments of the population into wage labor and the associated disruption of traditional work structures, 2) the feminization of the new industrial work force and its impact on the work opportunities of men, and 3) the consolidation of objective and ideological links with the highly industrialized countries where most foreign capital originates. The data suggest an examination of the causes of emigration on a much more specific level than that of underdevelopment, poverty, and population growth. These facts carry immediate policy implications for US immigration organizations: 1) if US firms in export processing zones recruited workers from the pool of unemployed--mostly prime-age males--rather than expanding the labor supply by recruiting young women, thereby disrupting unwaged work structures, and 2) if these firms would desist from having high turnover rates among workers, then the migration impact of this type of development would be minimized.

Institutional Field for Outward Foreign Direct Investment:

DEFF Research Database (Denmark)

Marinova, Svetla Trifonova; Child, John; Marinov, Marin Alexandrov

2012-01-01

The paper AU :3 explores the stages of development of an outward foreign direct investment (OFDI) institutional field during periods of major system change in big emerging economies. The state and its agencies appear to be the principal institutional entrepreneurs in developing the OFDI...

Foreign Direct Investment in Central and Eastern Europe

DEFF Research Database (Denmark)

Marinov, Marin Alexandrov; Marinova, Svetla Trifonova

facilities there. These processes result in intensive penetration of companies through foreign direct investment into the CEE region. Simultaneously, the foreign investing companies face the specific context of a region that poses new requirements to their investment strategies, approaches and practices....... Covering a diverse range of CEE countries, as well as referring to the characteristics of the region as a whole, this book examines the inflow and outflow of foreign direct investment from both home and host company and country perspectives. By analyzing foreign direct investment in terms of process......, content and context, the book provides a holist approach towards foreign direct investment in the transitional context of CEE. The book includes a comprehensive study of the motives of multi-national companies for investing in Central and Eastern Europe through various investment modes and the degree...

FOREIGN DIRECT INVESTMENTS DURING FINANCIAL CRISES

Directory of Open Access Journals (Sweden)

VINTILA DENISIA MARIANA

2011-12-01

Full Text Available The fundamental idea of International capital flows is that short-term flows can be easily reversed, while flows on a longer time horizon are more stable. Crises are associated with withdrawals of short-term capital flows and growth of the foreign direct investment flows. The current crisis has meant a major decline of international capital flows, also of the foreign direct investment. The analysis in this article tries to establish if and under which conditions foreign direct investments can bring greater stability during the crisis, comparing the evolution of foreign direct investments in the current crisis with their response in previous crises. We show that during previous crises foreign direct investments were stable, behaving differently from other types of capital. Yet, during the current crisis, foreign direct investments have proven to be not so stable and all the components declined, raising questions about the resumption of the positive trend. The stability of foreign direct investments in the past was given by the increase of mergers and acquisitions during the crisis, reflecting fire-sale FDI. This feature is not found in the current crisis as mergers and acquisitions were severe affected by the crises and recorded a major decline. The current paper is realized in the doctoral program entitled PhD in economics at the standards of European knowledge- DoEsEc, scientific coordinator Prof. PhD Rodica Zaharia, institution The Academy of Economic Studies Bucharest, Faculty of International Business, period of research 2009-2012.

The causal relationship between Foreign Direct Investment (FDI ...

African Journals Online (AJOL)

The causal relationship between Foreign Direct Investment (FDI) and the ... of selected west African countries: Panel ARDL/Granger Causality Analysis. ... among this developing countries and an important revelation for policy implication.

Seeking new growth hotspots in absorbing foreign direct investment

Institute of Scientific and Technical Information of China (English)

裴长洪

2009-01-01

In recent years, China’s service industries have absorbed an increasing amount of foreign direct investment (FDI); foreign investors have taken wholly foreign-owned enterprise (WFOE) as the most preferred vehicle of making investment in China; free ports have become a major source of FDI inflows to China; China’s FDI inflows as a percentage of global FDI inflows have been in decline. In the export-oriented or import-substitution manufacturing industries, China still needs to vigorously absorb FDI in the future. In addition, China should continue opening its infrastructure and social service industries. It is therefore imperative to further improve the institutional and policy environment for foreign investment utilization.

78 FR 14962 - BE-15: Annual Survey of Foreign Direct Investment in the United States

Science.gov (United States)

2013-03-08

... BE-15: Annual Survey of Foreign Direct Investment in the United States AGENCY: Bureau of Economic... Survey of Foreign Direct Investment in the United States. This survey is authorized by the International... BE-12, Benchmark Survey of Foreign Direct Investment in the United States. What To Report: The survey...

THE ROLE OF FOREIGN DIRECT INVESTMENT IN THE AUTOMOBILE

Directory of Open Access Journals (Sweden)

CEAUȘESCU IONUT

2015-08-01

Full Text Available Direct foreign investment consists of the placing of funds to an economic objective that works abroad, for the purpose of obtaining a certain degree of control over it. Therefore, foreign direct investments are those types of investments in which investors issuers of investment flows have the ability to control and decision on the activity of economic agents receivers of investments. Foreign direct investments have three components, namely: social capital, reinvested profit and loans inside the company. Foreign investment is at this time the engine Romania's development strategy, among the biggest investors in Romania in the country being French Renault group. The investment made, Renault has increased as a brand name, DACIA, extending over boundaries of the country even on the American continent were said so, benefited from your investment both Romanian state, as well as Renault.

Anti-double dipping rules for federal tax incentives

Energy Technology Data Exchange (ETDEWEB)

Ing, E.T.C. [Law Office of Edwin T.C. Ing, Washington, DC (United States)

1997-12-31

Political as well as technological changes are now reshaping the electric utility industry. While accommodating these changes, state legislative and regulatory agencies have the opportunity to promote public policies. In this regard, various state entities are evaluating appropriate incentives for renewable energy development so as to introduce greater competition in electric generation. For example, the California legislature is considering a supplemental production payment and the State of Iowa has instituted a low-interest loan program for wind and other alternative energy generation. By complementing the existing federal tax incentives, state incentives can spur the wind industry`s growth. If structured in the wrong way, however, state assistance programs will undercut the value of the federal tax incentives. The federal anti-double dipping rules apply to certain state programs. If a developer utilizes the wrong type of state assistance for a wind project, the anti-double dipping rules will reduce the federal tax incentives and this in turn will decrease the project`s profitability. Rather than suffer these results, very few if any developer will use the state program. Despite the time and effort a state may expend to enact a program for alternative energy development, the state assistance will be ineffectual. This paper reviews the counterproductive results which state assistance can have on a wind project because of the federal anti-double dipping rules.

Antidumping duties, undertakings and foreign direct investment in the EU

NARCIS (Netherlands)

Belderbos, R.A.; Vandenbussche, H.; Veugelers, R.

2004-01-01

We study the effects of EU antidumping policy when foreign firms can ‘jump’ antidumping duties through foreign direct investment (FDI) in the EU. We show that duty jumping or duty pre-empting FDI occurs if the EU administration has broader objectives than protecting EU industry's profitability and

Foreign direct investments and their impact on the economic development of Bosnia and Herzegovina

Science.gov (United States)

Susic, I.; Stojanovic-Trivanovic, M.; Susic, M.

2017-05-01

From the perspective of macroeconomic indicators, investment is a significant determinant of economic development in general, as well as the development indicator of economic entities in the micro segment. Investments are an essential element of any economic policy, because their implementation provides a platform not only for economic development, but also are prerequisite for the stability of economic and social trends. Foreign direct investment plays an important role in the financing of the global economy, and it represents the most frequent feature in financing the national economies of developing countries and countries in transition. Demand for foreign investment in the global market is large, and thus the governments have been conducting many activities in order to create a more favorable environment to attract investors. In this paper, special attention was paid to direct investments in financing the economy on a global scale, their importance for the development of the global economy and the impact of foreign direct investment in the economic development of Bosnia and Herzegovina. The major activities, which are necessary to be done to attract investments in the highest possible volume, have been emphasized. With the use of statistical and quantitative analysis, the paper shows that the inflow of foreign capital is one of the basic prerequisite of economic growth acceleration and that the inflow of foreign capital has a positive impact on the economic development of Bosnia and Herzegovina. By monitoring and analyzing the various instruments of foreign capital inflow, with an emphasis on investment in the free zone and a joint venture with foreign investors, it has been clearly pointed out the fact that they have diverse, but proven positive impact on macroeconomic variables in the economy of Bosnia and Herzegovina.

Does Foreign Aid increase Foreign Direct Investment?

DEFF Research Database (Denmark)

Selaya, Pablo; Sunesen, Eva Rytter

2012-01-01

We examine the idea that aid and FDI are complementary sources of foreign capital. We argue that the relationship between aid and FDI is theoretically ambiguous: aid raises the marginal productivity of capital when used to finance complementary inputs (like public infrastructure and human capital...... investments), but aid may crowd out private investments when it comes in the shape of pure physical capital transfers. Empirically, we find that aid invested in complementary inputs draws in FDI, while aid invested in physical capital crowds it out. The paper shows that the composition of aid matters for its...

Influence of foreign direct investment on indicators of environmental degradation.

Science.gov (United States)

Solarin, Sakiru Adebola; Al-Mulali, Usama

2018-06-21

This study aims to contribute to the existing literature by looking at the influence of foreign direct investment on carbon dioxide emissions, carbon footprint, and ecological footprint. In order to realize the aim of this study, we have utilized the augmented mean group estimator, which is supported by common correlated effect mean group estimator in the analysis for 20 countries. The panel results reveal that foreign direct investment has no effect on environmental degradation indicators. The panel results further reveal that gross domestic product, energy consumption, and urbanization are the main contributors to environmental degradation. The results at country level show that foreign direct investment and urbanization increase pollution in the developing countries while they mitigate pollution in the developed countries. Moreover, gross domestic product and energy consumption increase pollution for both developed and developing countries, which includes China and the USA. The negative impact of foreign direct investment on environmental degradation in the developed countries can be explained on the basis that these countries have strong environmental regulations, which makes it almost impossible for dirty foreign industries to invest therein. From the output of this research, several policy recommendations are enumerated for the investigated countries.

The place of foreign direct investment in the global economy

Directory of Open Access Journals (Sweden)

Tomasz Gutowski

2011-06-01

Full Text Available Foreign direct investment (FDI plays an extraordinary and growing role in global business. It can provide a firm with new markets and marketing channels, cheaper production facilities, access to new technology, products, skills and financing. For a host country or the foreign firm which receives the investment, it can provide a source of new technologies, capital, processes, products, organizational technologies and management skills and as such can provide a strong impetus to economic development. The sea change in trade and investment policies and the regulatory environment globally in the past decade, including trade policy and tariff liberalization, easing of restrictions on foreign investment and acquisition in many nations, and the deregulation and privitazation of many industries, has probably been been the most significant catalyst for FDI’s expanded role.

Spillovers from Foreign Direct Investment

DEFF Research Database (Denmark)

Meyer, Klaus E.; Sinani, Evis

2005-01-01

The extensive empirical literature analyzing productivity spillovers from foreign direct investment to local firms provides inconclusive results. Some studies find that foreign presence has a positive impact on the productivity of domestic firms, while others find no evidence or a negative effect...... for industrialized countries in the 1990s. Transition economies may experience spillovers, but these have been declining in recent years. Keywords: developing countries, transition economies, spillovers, foreign direct investment, technology transfer, meta-analysis...

The impact of International Financial Reporting Standards (IFRS) adoption on Foreign Direct Investments (FDI): Evidence from Africa and implications for managers of education

OpenAIRE

Akpomi, Margaret Emalereta; Nnadi, Matthias Akandu

2017-01-01

Foreign direct investments have been shown by previous studies to promote economic growth and development especially in the emerging markets through human capital development and technology transfer. In this study, adopting the International Financial Reporting Standards (IFRS) is considered a way of attracting FDI, improving comparability in financial reporting, reducing information asymmetries and cost for foreign investors. The effect of regulatory quality is found as an incentive fo...

FORMS AND MOTIVATIONS OF FOREIGN DIRECT INVESTMENT

Directory of Open Access Journals (Sweden)

Maria-Ramona SÂRBU

2014-04-01

Full Text Available This study proposes the identification of forms of Foreign Direct Investment (FDI and analyzes factors influencing FDI motivation. Designing a coherent program to encourage foreign direct investment is based on knowledge of the factors that determine international companies to resort to this type of development: these companies resort to foreign direct investment if they have ownership advantages and internationalization, while another country has locational advantages to the company's home country. Thus, identifying the factors that influence the motivation of FDI is important both at the microeconomic level, local, local authorities and macroeconomic, national, government to develop measures for multiplying FDI .

Labor Force – Main Determinant Of the Foreign Direct Investments Located in Romania

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Aniela Raluca Danciu

2015-03-01

Full Text Available The foreign direct investments can be considered as one of the main factors that have sustained the evolution of the centralized former communist East-European economies into open competitive market systems. The East-European countries were the destination of some significant capital inflow because of some important features of each market as: development level of the infrastructure, labor force characteristics, market size and its future development possibilities, regulation level of the market, liberalization level of the prices, tax policies and technology absorption capability. When talking about Romania one of the main determinants of the foreign direct investments was the labor force, which attracted in the manufacturing industry to types of investors: cost oriented investors and quality oriented investors. The main goal of this research paper is to provide a clear description of the similarities and of the differences of the two investor types, at national and regional. Data used in this research were collected using a questionnaire and were further analyzed using the SPSS software.

The Exon-Florio National Security Test for Foreign Investment

National Research Council Canada - National Science Library

Jackson, James K

2006-01-01

.... While the United States actively promotes internationally the policy of relaxing rules concerning foreign investment, including the national treatment of foreign firms, some Members of Congress...

Foreign and Domestic Investment in Argentina: The Politics of Privatized Infrastructure, By Alison E. Post

DEFF Research Database (Denmark)

Manzetti, Luigi

2016-01-01

Book review of: Alison E. Post: Foreign and Domestic Investment in Argentina: The Politics of Privatized Infrastructure. Cambridge, 2014. 266 p. ISBN: 9781107048041......Book review of: Alison E. Post: Foreign and Domestic Investment in Argentina: The Politics of Privatized Infrastructure. Cambridge, 2014. 266 p. ISBN: 9781107048041...

Investment Timing, Liquidity, and Agency Costs of Debt

DEFF Research Database (Denmark)

Hirth, Stefan; Uhrig-Homburg, Marliese

2010-01-01

This paper examines the effect of debt and liquidity on corporate investment in a continuous-time framework. We show that stockholder-bondholder agency conflicts cause investment thresholds to be U-shaped in leverage and decreasing in liquidity. In the absence of tax effects, we derive the optimal...... level of liquid funds that eliminates agency costs by implementing the first-best investment policy for a given capital structure. In a second step we generalize the framework by introducing a tax advantage of debt, and we show that an interior solution for liquidity and capital structure optimally...... trades off tax benefits and agency costs of debt....

The Attracting of Foreign Investment in the Russian Economic Development

Directory of Open Access Journals (Sweden)

Sergey I. Girko

2018-03-01

Full Text Available The attracting of foreign investment is a strategic goal of the Russian economy’s development. Direct investment plays a special role in this process providing an access to financial resources, modern technologies, management skills, innovative goods and services as well as contributing to increase of economic competitiveness, sustained growth and improvements in living standards. In this connection, creation of an enabling environment for foreign investors is a priority sector of public investment policy. Based on the analysis of federal and regional forms of supporting investment activities, it can be concluded that the forms associated with budget injections into the economy are dominant. Co-financing of investment projects, government programs to support exports, create infrastructure (technology parks, SEZ infrastructure, TAD, create support centers for entrepreneurs, all this can be called financial stimulation of economic activity and, in particular, investment activity. The study suggest that the state has to go to these costs in connection with the reduction of the investment potential of the private sector, as a result of the economic crisis and international sanctions.

Using the tax system to promote physical activity: critical analysis of Canadian initiatives.

Science.gov (United States)

von Tigerstrom, Barbara; Larre, Tamara; Sauder, Joanne

2011-08-01

In Canada, tax incentives have been recently introduced to promote physical activity and reduce rates of obesity. The most prominent of these is the federal government's Children's Fitness Tax Credit, which came into effect in 2007. We critically assess the potential benefits and limitations of using tax measures to promote physical activity. Careful design could make these measures more effective, but any tax-based measures have inherent limitations, and the costs of such programs are substantial. Therefore, it is important to consider whether public funds are better spent on other strategies that could instead provide direct public funding to address environmental and systemic factors.

THE STRUCTURE AND TERRITORIAL DYNAMIC OF FOREIGN DIRECT INVESTMENT IN ROMANIA

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LILIANA SCUTARU

2015-03-01

Full Text Available This paper analyzes the structure of foreign direct investment in Romania, FDI agglomeration areas at the local level and their fields, with a particular analysis on greenfield investments because this type of investment is, par excellence, the promoter of new technologies and technical and technological progress. In this respect, the paper considers the analysis of foreign direct investment stock in greenfield enterprises and their location and territorial distribution by regions in Romania of stock of greenfield investments. The research reveals that, in the period under review, greenfield investments in Romania have shifted from the manufacturing sector to the service sector, thereby increasing the country's vulnerability to financial risks and speculation worldwide. In terms of regional distribution, the research highlights the fact that FDI are highly unevenly localized in Romania

Modern aspects of tax regulation of investment activity

Directory of Open Access Journals (Sweden)

E.S. Podakov

2016-03-01

Full Text Available The article investigates the tax regulation of investment activity in modern conditions. Scientists studied different views about the impact of tax regulations on the investment activity in the country. The author determines that the tax regulation of investment activity involves the use of state mechanisms taxation of certain measures to improve investment conditions. The subject is the state tax regulations, and the object is the investment activity of individual and institutional investors of any form of ownership including organizational and legal forms. Such regulation is performed by using complex special tools. The possible methods of tax stimulation of investment processes are described. The article deals with the current results of tax reform in Ukraine and predicts its possible consequences for agricultural producers. The rating positions of Ukraine according to international organizations are showed. The systematic analysis has been carried out and the impact of differential tax rates, tax exemption for a specified period, reducing the tax base, elimination of double taxation on investment activity in certain areas have been researched. The special instruments of investment activity tax regulation are considered. The options for improving investment activity by introducing effective tax regulation are determined.

Do democratic institutions and foreign direct investment affect ...

African Journals Online (AJOL)

Do democratic institutions and foreign direct investment affect economic growth? Evidence from ... International Journal of Development and Management Review ... The importance of sound democratic institutional structures and foreign direct investment for enhancing economic growth is well documentedin literature.

Renewable energy policies in promoting financing and investment among the East Asia Summit countries: Quantitative assessment and policy implications

International Nuclear Information System (INIS)

Chang, Youngho; Fang, Zheng; Li, Yanfei

2016-01-01

Many countries have implemented various policies for renewable energy development ranging from setting power purchase agreements and the legislation of renewable energy requirements to providing incentives and imposing carbon taxes. The evaluation of the effectiveness of such policies, however, is fragmented, which raises a need for a comprehensive analysis. This paper aims to assess whether and how policies promoting renewable energy investment have achieved the intended goals. It employs five broadly defined criteria - market, uncertainty, profitability, technology, and financial resources - to build an index to assess respectively if such policies have helped create a market for renewable energy, maximize potential profits, reduce risks relating to the investment, develop and adopt new technologies, and improve the access to financial resources. Each criterion is reflected by three indicators. Values of each indicator are converted into ordinal values for analysis. The index not only scans comprehensively all relevant renewable energy investment policies in the East Asia Summit countries, but also provides systematic and quantitative measures to compare the effectiveness of policies in these countries with respect to the creation of market, the degree of uncertainty, the potential of profitability, the development and adoption of technology and the accessibility of financial resources. - Highlights: •This paper evaluate renewable energy policies in 16 East Asia Summit countries. •Five criteria are used to build the quantitative index. •They are market, profitability, legislation, technology, and financial resources. •Policy implications are drawn based on the index.

Foreign Direct Investment versus Portfolio Investment : A Global Games Approach

OpenAIRE

Yamin Ahmad; Pietro Cova; Rodrigo Harrison

2004-01-01

We present a model of investment under uncertainty about fundamentals, using a global games approach. Goldstein & Razin (2003) show that there is an information based trade-off between foreign direct investment (FDI) and portfolio investment (PI) which rationalizes some well known stylised facts in the literature - the relative volatility and reversibility of foreign direct investment versus portfolio investment. We extend their result and show that uncertainty about fundamentals does not imp...

Canadian tax policy and renewable energy : are the benefits illusory : a comparison of Canadian and US approaches

International Nuclear Information System (INIS)

Chant, A.

2008-01-01

Tax policies for targeted activities such as wind energy need to be efficient and effective in promoting activities that may not otherwise take place. An efficient tax policy will not have unintended consequences that may lead to tax leakage or benefits outside the targeted activity, and will be consistent with other incentives promoting the target activity. This presentation discussed Canadian tax policies related to wind power and then compared them to tax policies in the United States directed at promoting wind energy development. Benefits and subsidies available to Canadian wind energy producers include the ecoEnergy program, the Canadian Renewable and Conservation Expense (CRCE) program; and Class 43.2 directed at high efficiency and renewable energy generation equipment. The Canadian valuation methodology considers capacity factors; capital costs; leverage; interest rates; corporate tax rates; and required equity. While the ecoEnergy program is valuable as it removes the tax risk for the recipient, the CRCE may be more valuable as it does not expire and is not subject to limitations on amounts deductible. Class 43.2 is valuable but constrained by the limitations of a project's income. The United States has a production tax credit (PTC) for wind developers based on a tax credit of $15 per MWh subject to adjustment, and is available for a 10-year period, is transferable to taxable investors, and has a current value of $20. It was concluded that while Canadian subsidies are the equivalent of $7.15, US subsidies are the equivalent of $17. tabs., figs

Foreign Policy and Public-Private Partnership for Economic ...

African Journals Online (AJOL)

This paper examines foreign policy and public-private partnership for economic development in Nigeria. It proceeds from the assumption that foreign policy goes beyond spontaneous reaction to international issues and events, but an extrapolative and empirical attempt at achieving a state's short and long term goals ...

76 FR 53818 - Determining the Amount of Taxes Paid for Purposes of the Foreign Tax Credit; Correction

Science.gov (United States)

2011-08-30

... regulations affect individuals and corporations that claim direct and indirect foreign tax credits. DATES... Determining the Amount of Taxes Paid for Purposes of the Foreign Tax Credit; Correction AGENCY: Internal... determination of the amount of taxes paid for purposes of the foreign tax credit. These regulations address...

Foreign Direct Investment And Poverty Redution In Nigeria ...

African Journals Online (AJOL)

Journal of Research in National Development ... The relationship between Foreign Direct Investment and growth has been realized or ... to reduce her poverty level throughout without the right conducive environment, ... for empirical analysis that embrace the impact of foreign direct investment as GDP ... from 32 Countries:.

26 CFR 1.901-2T - Income, war profits, or excess profits tax paid or accrued (temporary).

Science.gov (United States)

2010-04-01

... amount of tax paid. (3) Direct investment. The U.S. party's proportionate share of the foreign payment or... the interest is owned by a U.S. or foreign entity. (5) Passive investment income—(i) In general. The... recognize their distributive shares of the $10 million premium income and claim a direct foreign tax credit...

Human Rights Promotion through Transnational Investment Regimes: An International Political Economy Approach

Directory of Open Access Journals (Sweden)

Claire Cutler

2013-05-01

Full Text Available International investment agreements are foundational instruments in a transnational investment regime that governs how states regulate the foreign-owned assets and the foreign investment activities of private actors. Over 3,000 investment agreements between states govern key governmental powers and form the basis for an emerging transnational investment regime. This transnational regime significantly decentralizes, denationalizes, and privatizes decision-making and policy choices over foreign investment. Investment agreements set limits to state action in a number of areas of vital public concern, including the protection of human and labour rights, the environment, and sustainable development. They determine the distribution of power between foreign investors and host states and their societies. However, the societies in which they operate seldom have any input into the terms or operation of these agreements, raising crucial questions of their democratic legitimacy as mechanisms of governance. This paper draws on political science and law to explore the political economy of international investment agreements and asks whether these agreements are potential vehicles for promoting international human rights. The analysis provides an historical account of the investment regime, while a review of the political economy of international investment agreements identifies what appears to be a paradox at the core of their operation. It then examines contract theory for insight into this apparent paradox and considers whether investment agreements are suitable mechanisms for advancing international human rights.

Investment Timing, Liquidity, and Agency Costs of Debt

DEFF Research Database (Denmark)

Hirth, Stefan; Uhrig-Homburg, Marliese

This paper examines the effect of debt and liquidity on corporate investment in a continuous-time dynamic framework. We show that due to stockholder-bondholder agency conflicts, investment thresholds are U-shaped in leverage and decreasing in liquidity. While the underinvestment problem dominates...... for low-liquidity firms, there is overinvestment for high-liquidity firms. In the absence of tax effects, we derive the optimal level of liquid funds that eliminates agency costs by implementing the first-best investment policy for some given capital structure. In a second step we generalize the framework...... by introducing a tax advantage of debt, and we show that an interior solution for liquidity and capital structure optimally trades off tax benefits and agency costs of debt....

Foreign direct investment and policy framework: New Granger causality evidence from African countries

Directory of Open Access Journals (Sweden)

Rafiu Adewale Aregbeshola

2014-11-01

Full Text Available The strategic importance of foreign direct investment in the contemporary economies has been tremendous.While various countries (developed and developing economies have benefitted from the direct and spillovereffects of FDI, which range from improved technology and knowledge diffusion through to individual andcorporate capability enhancement, FDI outflow remains largely channelled to the developed countries, andthe rapidly developing countries in Asia and South America. Evidence suggests that the developmentenhancingeffects of FDI are felt more highly in the developing economies, such as economies in Africa.However, FDI inflow to the developing economies has been very low. Using data generated from the AfricanDevelopment Indicators (ADI between 1980 and 2008 in econometric estimations, this paper finds thatgovernment policies (especially fiscal and monetary policies play significant roles in facilitating FDI inflow tothe African countries studied. The study thereby suggests an improved regulatory framework to make Africamore attractive to inflow of FDI.

Foreign Direct Investment – The Case of Botswana

Directory of Open Access Journals (Sweden)

Patricia Lindelwa Makoni

2015-08-01

Full Text Available This article sets out to analyse the occurrence of foreign direct investment (FDI in Botswana. Diamonds contribute more than 50% of Botswana’s gross domestic product (GDP, hence economic growth and development focus has been on the mining sector. The country’s other sectors of tourism, agriculture, financial services and manufacturing have not received as much support from the Government, private sector and even international investors. This article briefly examines FDI inflow trends and the country’s national economic-building policies which the Government has put in place to diversify its economy from the current export-oriented, diamond mining economy. A country-specific case study approach was adopted. The results yielded show that Botswana is overly dependent on export earnings from diamonds. This leaves the country vulnerable to external global economic shocks. Given that diamonds are a natural resource with a limited lifespan, the Government of Botswana needs to draw up investor-friendly policies to attract FDI inflows to expand its economic base. International capital inflows would complement domestic savings and further boost employment and trade opportunities in the country.

Does foreign direct investment cause higher levels of productivity or do higher levels of productivity attract foreign direct investment? A study in transforming brazilian industry

Directory of Open Access Journals (Sweden)

Nádia Campos Pereira

2013-04-01

Full Text Available DOI: http://dx.doi.org/10.5007/2175-8077.2013v15n35p82   With this research, it was aimed to investigate the factors that determine the investment decision of foreign investors in the Brazilian industry. Evidence shows that foreign investors are attracted not only by more productive and best performing sectors, but depending on the adopted strategy, they may choose investment projects in sectors that have lower performance levels which offer the potential for growth and the and improvement of efficiency levels and capacity. Granger causality test indicated that not only foreign investment gives more productivity gains, but also this productivity induces more foreign investment inputs. Foreign investors are also attracted by those sectors, which use their assets in an inefficient way in order to generate profits. These sectors may be attractive to foreign investors that want to invest in a more aggressive growth policy in order to get advantages on the availability of inefficiently used assets. These sectors may be also attractive targets to investors who seek to compete directly in relatively less competitive sectors.

Application of GIS in foreign direct investment decision support system

Science.gov (United States)

Zhou, Jianlan; Sun, Koumei

2007-06-01

It is important to make decisions on how to attract foreign direct investment (FDI) to China and know how the inequality of FDI introduction by locational different provinces. Following background descriptions on China's FDI economic environments and FDI-related policies, this paper demonstrates the uses of geographical information system (GIS) and multi-criterion decision-making (MCDM) framework in solving a spatial multi-objective problem of evaluating and ranking China's provinces for FDI introduction. It implements a foreign direct investment decision support system, which reveals the main determinants of FDI in China and gives some results of regional geographical analysis over spatial data.

The Angolan law of foreign investment in petroleum activities

International Nuclear Information System (INIS)

Marques, M.M.L.; Moreira, Vital

1992-01-01

Accompanying the political and economical transformations which are under way in Angola, the law on foreign investments (and in general on the freedom of private initiative) was recently the object of important alterations which were also reflected in the access to petroleum activities. These changes are examined and the current regime of foreign investment in Angola and in particular the legal framework of petroleum activities are described. First, however, it is important to provide a summary of the legislative evolution pertaining to this subject so that we can better understand the present situation. (author)

RISK AND FOREIGN DIRECT INVESTMENT IN ROMANIA

Directory of Open Access Journals (Sweden)

Catalin Drob

2014-07-01

Full Text Available This paper tries to present the main categories (types of risks that affect the inflows of foreign direct investment (FDI in Romania, such as: country risk, political risk, economic risks, sovereign risks and so on. FDI is an important factor contributing to the economic development and to the economic growth of a country. In order to recuperate its economic handicap as compared to the other countries in the EU, Romania needs a massive inflow of foreign capital, especially in the form of direct investment. The paper also presents the evolution of FDI inflows in Romania and how they were influenced by the main factors affecting the FDI. In principle, between risk and the level of FDI inflows there is a direct dependency relationship: the higher the risk is in a country, the lower the level of FDI inflows is in that country. This is demonstrated by the empirical studies regarding FDI. These studies show that countries with high risk have major difficulties in attracting foreign investment. Therefore, it is important to identify very precisely the main risks that may affect the level of FDI inflows in Romania, in order to propose and implement strategies to mitigate these risks and to attract more foreign direct investment in Romania.

Financial Frictions, Foreign Direct Investment, and Growth

OpenAIRE

Luis San Vicente Portes

2010-01-01

This paper assesses the role of financial frictions and Foreign Direct Investment (FDI) on an economy´s growth rate, business cycle volatility, and firm´s capital structure. We gauge these effects within the Financial Accelerator framework, where entrepreneurs can establish affiliates of local firms abroad through Foreign Direct Investment. Model simulations suggest that in the presence of credit market imperfections FDI is associated with faster growth, less leverage, and lower aggregate vol...

The Russian petroleum tax system: evolution, effects and prospects

International Nuclear Information System (INIS)

Kemp, A.G.

1996-01-01

The investment climate in the Russian petroleum industry was the subject of this discourse. Legal uncertainties, particularly in taxation, have been identified as having had an inhibiting effect on investment incentives for all enterprises, domestic and foreign. For example, until recently taxes have been based on gross production revenues rather than on profits. Extensive and frequent changes in recent years have been moving towards a more profit related structure, with marked effect on investment incentives for both domestic and foreign companies. Passing of the Law on Production Sharing, and amendments to the Tax Code proposed in 1996, which are aimed at encouraging investment, were described. Further changes to make the Law on Production Sharing and the Tax Code more consistent with each other, and most of all, greater tax stability, were suggested as the most effective incentives to creating an improved investment climate. 1 ref., 1 tab., 30 figs

Tax and Fiscal Policies for Promotion of Industrial EnergyEfficiency: A Survey of International Experience

Energy Technology Data Exchange (ETDEWEB)

Price, Lynn; Galitsky, Christina; Sinton, Jonathan; Worrell,Ernst; Graus, Wina

2005-09-15

The Energy Foundation's China Sustainable Energy Program (CSEP) has undertaken a major project investigating fiscal and tax policy options for stimulating energy efficiency and renewable energy development in China. This report, which is part of the sectoral sub-project studies on energy efficiency in industry, surveys international experience with tax and fiscal policies directed toward increasing investments in energy efficiency in the industrial sector. The report begins with an overview of tax and fiscal policies, including descriptions and evaluations of programs that use energy or energy-related carbon dioxide (CO2) taxes, pollution levies, public benefit charges, grants or subsidies, subsidized audits, loans, tax relief for specific technologies, and tax relief as part of an energy or greenhouse gas (GHG) emission tax or agreement scheme. Following the discussion of these individual policies, the report reviews experience with integrated programs found in two countries as well as with GHG emissions trading programs. The report concludes with a discussion of the best practices related to international experience with tax and fiscal policies to encourage investment in energy efficiency in industry.

DETERMINANTS OF FOREIGN DIRECT INVESTMENTS IN ROMANIA

Directory of Open Access Journals (Sweden)

Lenuta CARP (CEKA

2014-11-01

Full Text Available Foreign direct investments have known an increased importance in the worldwide economy. Theoretical approaches highlight the positive externalities foreign direct investments generate in the beneficiary economy though different channels. The aim of this paper is to emphasize, based on an econometric analysis using data for Romania, the fundamental determinants of foreign direct investments attractiveness. The analysis will be followed by the recommendations for increasing the inflows in our country and measures to enhance their effect in the national economy. Further analysis will be developed focusing on the emerging countries from Europe using a panel technique.

Fiscal policy and private investment: latin america in a comparative perspective

Directory of Open Access Journals (Sweden)

Emilio Caballero U.

2012-06-01

Full Text Available The main objective of the paper is to assess the impact of fiscal variables on private investment comparing some Latin-American economies to other advanced ones. For such purposes, the authors carry out an econometric analysis for the period 1990-2008. They make use of two dynamic panel models in which they group countries with similar characteristics and development levels. In one of them, they include Mexico, Brazil, Chile, Colombia and Uruguay; whereas in the second one the countries accounted for are the U.S., Canada, Spain, Korea, Ireland and Japan. They specify in both models an investment function using as arguments a wide range of variables, including those related with fiscal policy. From their results the authors infer that governments can, with higher spending, boost up the economy even when they finance spending with higher taxes. In Latin America, where income concentration is enormous, a proposal to boost up the economy through higher government expenditure financed with a progressive income tax, is even more justified.

76 FR 79054 - Direct Investment Surveys: BE-12, Benchmark Survey of Foreign Direct Investment in the United States

Science.gov (United States)

2011-12-21

...] RIN 0691-AA80 Direct Investment Surveys: BE-12, Benchmark Survey of Foreign Direct Investment in the... reporting requirements for the 2012 BE-12, Benchmark Survey of Foreign Direct Investment in the United... survey covers the universe of foreign direct investment in the United States, and is BEA's most detailed...

The Influence of Foreign Direct Investments on Regional Development in Croatia

Directory of Open Access Journals (Sweden)

Ines Kersan-Škabić

2014-12-01

Full Text Available The aim of this study was to determine the influence of foreign direct investments (FDI on regional development in Croatia and to contribute to previous studies that deal with regional FDI re-allocations. Our analysis was conducted at the NUTS 3 level (21 Croatian counties and applied panel data analysis to determine the influence of FDI as well as other factors that proved to be significant in regional development in Croatia. The results point out that investment (i.e., both domestic and foreign direct investments, labor productivity, and export have a positive and significant influence on regional development, while absorptive capacity has a negative influence. It is therefore important to strengthen the absorptive capacity of Croatian regions to create a favorable investment environment and to provide good preconditions for the development of other factors of regional development. Findings are relevant for policy-makers who should take more proactive roles in attracting FDI as a way of strengthening regional development in Croatia. This may help policy-makers to act locally to achieve cohesion, but it can also be important for foreign investors that observe regional FDI determinants in the European Union.

76 FR 58420 - Direct Investment Surveys: BE-12, Benchmark Survey of Foreign Direct Investment in the United States

Science.gov (United States)

2011-09-21

...] RIN 0691-AA80 Direct Investment Surveys: BE-12, Benchmark Survey of Foreign Direct Investment in the... of Foreign Direct Investment in the United States. Benchmark surveys are conducted every five years; the prior survey covered 2007. The benchmark survey covers the universe of foreign direct investment...

Commercialization of biomass energy projects: Outline for maximizing use of valuable tax credits and incentives

International Nuclear Information System (INIS)

Sanderson, G.A.

1994-01-01

The Federal Government offers a number of incentives designed specifically to promote biomass energy. These incentives include various tax credits, deductions and exemptions, as well as direct subsidy payments and grants. Additionally, equipment manufacturers and project developers may find several other tax provisions useful, including tax incentives for exporting U.S. good and engineering services, as well as incentives for the development of new technologies. This paper outlines the available incentives, and also addresses ways to coordinate the use of tax breaks with government grants and tax-free bond financing in order to maximize benefits for biomass energy projects

Foreign direct investments in Southeast Asia

OpenAIRE

Sjöholm, Fredrik

2013-01-01

Foreign direct investment has been of large importance in economic growth and global economic integration over the last decades. South East Asia has been part of this development with rapidly increasing inflows of FDI. However, there are large variations over time and between countries in the region as regard to the policies towards FDI, and in actual inflows of FDI. This chapter aims at examining the size of FDI in South East Asia and the trends in it. The main determinants of FDI in Southea...

A Panel data analysis of locational determinants of outward Foreign Direct Investment from China and India

OpenAIRE

Duanmu, J; Guney, Y

2009-01-01

The upsurge of Chinese and Indian outward foreign direct investment (FDI) raises an unanswered question about locational determinants of direct investment from the two countries. Using an unbalanced bilateral FDI database, we find that Chinese and Indian FDI are attracted to countries with large market size, low GDP growth, high volumes of imports from China or India, and low corporate tax rates. We also find important differences between China and India. While Chinese FDI is drawn to countri...

Private equity investments and disclosure policy

NARCIS (Netherlands)

Beuselinck, C.A.C.; Deloof, M.; Manigart, S.

2008-01-01

In the current study, we dynamically analyze unlisted firms’ voluntary disclosure decisions around private equity (PE) participation. First, we disentangle the role of disclosure in attracting PE investments. In addition, we examine the extent to which a firm’s disclosure policy is affected by the

A signaling model of foreign direct investment attraction

Directory of Open Access Journals (Sweden)

Marcelo de C. Griebeler

2017-09-01

Full Text Available Foreign direct investors face uncertainty about government's type of the host country. In a two period game, we allow the host country's government to mitigate such uncertainty by sending a signal through fiscal policy. Our main finding states that a populist government may mimic a conservative one in order to attract foreign direct investment (FDI, and this choice depends mainly on its impatience degree and the originally planned FDI stock. We highlight the role of the government's reputation in attracting foreign capital and thus provide some policy implications. Moreover, our model explains why some governments considered to be populist adopt conservative policies in the beginning of its terms of office. Resumo: Investidores estrangeiros diretos são incertos sobre o tipo do governo do país onde desejam investir. Em um jogo de dois períodos, permitimos que o governo de tal país mitigue essa incerteza ao enviar um sinal através da política fiscal. Nosso principal resultado estabelece que um governo populista pode imitar um conservador a fim de atrair investimento estrangeiro direto (IED, e essa escolha depende principalmente do grau de impaciência e do estoque de IED originalmente planejado. Destacamos o papel da reputação do governo em atrair capital externo e assim fornecemos algumas recomendações de política. Além disso, nosso modelo explica porque alguns governos considerados populistas adotam políticas conservadores no início do seus mandatos. JEL classification: F41, F34, C72, Keywords: Signaling, Foreign direct investment, Game theory, Palavras-chave: Sinalização, Investimento estrangeiro direto, Teoria dos jogos

77 FR 67329 - Information Collection: Agricultural Foreign Investment Disclosure Act

Science.gov (United States)

2012-11-09

... Disclosure Act (AFIDA) Program Manager, Natural Resources Analysis Group, Economic and Policy Analysis Staff... Information Collection: Agricultural Foreign Investment Disclosure Act AGENCY: Farm Service Agency, USDA... Foreign Investment Disclosure Act (AFIDA) of 1978. DATES: We will consider comments that we receive by...

FDI by Economic Activities and Investment Incentives in Bulgaria and Serbia

Directory of Open Access Journals (Sweden)

Biljana Stankov

2015-05-01

Full Text Available Since 2007, when Bulgaria became a full member of the EU and 2012, when Serbia was granted the status of candidate for EU membership, these countries have become very attractive investment destinations. The object of this research is the movements of FDI in the mentioned countries in 2013 and their structure by economic activities. The scientific problem is related to the positive effects of FDI on the host country, making an attractive investment environment, creating incentives for foreign investors and comparing the structure of FDI in Bulgaria and Serbia with simultaneous comparison with the European average. It may be noted that this is a current theoretical and empirical research that deals with modern state of the subject. The necessary quantitative data have been collected using the desk method and using the secondary data source and the method of description as well as the comparative method were used in the ensuing analysis. The aim of the study is to, by applying the above methods, determine the most attractive investment areas, analyze the current investment incentives and provide recommendations on adjustments to be made to improve the actual investment strategies and create attractive investment locations in Bulgaria and Serbia.

Determinants of Foreign Direct Investment Inflows in Kenya

African Journals Online (AJOL)

Nneka Umera-Okeke

DISCIPLINARY ... Key Words: Foreign Direct Investments, Determinants, Inflows, Kenya. Introduction. Foreign Direct Investments .... Previous FDI inflows are also expected to influence current FDI inflows hence the need to include them in the model.

MULTINATIONAL COMPANIES AND FOREIGN DIRECT INVESTMENT

OpenAIRE

Lucia P. BLĂJUȚ

2014-01-01

This paper highlights the significant share of multinational companies in international trade that are a factor of developing global economies. In the context of economic globalization the activity of multinational companies and their foreign direct investment have a strong impact on the host country which presents advantages and disadvantages for them. The main objective of this article is the review of the important role played by multinationals in economic development, especially in develo...

Health in All (Foreign) Policy: challenges in achieving coherence.

Science.gov (United States)

Labonté, Ronald

2014-06-01

Health in All Policies (HiAP) approach is generally perceived as an intersectoral approach to national or sub-national public policy development, such that health outcomes are given full consideration by non-health sectors. Globalization, however, has created numerous 'inherently global health issues' with cross-border causes and consequences, requiring new forms of global governance for health. Although such governance often includes both state and non-state (private, civil society) actors in agenda setting and influence, different actors have differing degrees of power and authority and, ultimately, it is states that ratify intergovernmental covenants or normative declarations that directly or indirectly affect health. This requires public health and health promotion practitioners working within countries to give increased attention to the foreign policies of their national governments. These foreign policies include those governing national security, foreign aid, trade and investment as well as the traditional forms of diplomacy. A new term has been coined to describe how health is coming to be positioned in governments' foreign policies: global health diplomacy. To become adept at this nuanced diplomatic practice requires familiarity with the different policy frames by which health might be inserted into the foreign policy deliberations, and thence intergovernmental/global governance negotiations. This article discusses six such frames (security, trade, development, global public goods, human rights, ethical/moral reasoning) that have been analytically useful in assessing the potential for greater and more health-promoting foreign policy coherence: a 'Health in All (Foreign) Policies' approach. © The Author 2014. Published by Oxford University Press. All rights reserved. For Permissions, please email: journals.permissions@oup.com.

Impact of Foreign Direct Investments on Unemployment in Emerging Market Economies: A Co-integration Analysis

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Yilmaz Bayar

2017-09-01

Full Text Available Purpose: The goal of the paper is to investigate the long run effect of both foreign direct investments and domestic investments on the unemployment in 21 emerging economies over the period 1994-2014. Design/methodology/approach: The effect of domestic and foreign direct investments on unemployment was investigated via panel data analysis. First tests of cross-section dependence and homogeneity were conducted, and then the stationarity of the series was analyzed with Pesaran's (2007 CIPS unit root test. The long run relationship among the series was examined with Westerlund-Durbin-Hausman's (2008 co -integration test. Finally, we estimated the long run coefficients with the Augmented Mean Group (AMG estimator. Findings: The empirical findings revealed a co-integrating relationship among domestic investments, foreign direct investments, and unemployment. Furthermore, foreign direct investment inflows affected the unemployment positively in the long term, but domestic investments affected the unemployment negatively. Originality/value: This study can be considered as one of the early studies researching the long run interaction between domestic investments, foreign direct investments and unemployment for the sample of emerging market economies. Furthermore, the findings are very meaningful for policymakers in the design the economic policies for decreasing unemployment.

Private initiatives and policy options: recent health system experience in India.

Science.gov (United States)

Purohit, B C

2001-03-01

In the recent past the impact of structural adjustment in the Indian health care sector has been felt in the reduction in central grants to States for public health and disease control programmes. This falling share of central grants has had a more pronounced impact on the poorer states, which have found it more difficult to raise local resources to compensate for this loss of revenue. With the continued pace of reforms, the likelihood of increasing State expenditure on the health care sector is limited in the future. As a result, a number of notable trends are appearing in the Indian health care sector. These include an increasing investment by non-resident Indians (NRIs) in the hospital industry, leading to a spurt in corporatization in the States of their original domicile and an increasing participation by multinational companies in diagnostics aiming to capture the potential of the Indian health insurance market. The policy responses to these private initiatives are reflected in measures comprising strategies to attract private sector participation and management inputs into primary health care centres (PHCs), privatization or semi-privatization of public health facilities such as non-clinical services in public hospitals, innovating ways to finance public health facilities through non-budgetary measures, and tax incentives by the State governments to encourage private sector investment in the health sector. Bearing in mind the vital importance of such market forces and policy responses in shaping the future health care scenario in India, this paper examines in detail both of these aspects and their implications for the Indian health care sector. The analysis indicates that despite the promising newly emerging atmosphere, there are limits to market forces; appropriate refinement in the role of government should be attempted to avoid undesirable consequences of rising costs, increasing inequity and consumer exploitation. This may require opening the health

Smallish foreign direct investment, sluggish growth: Can ...

International Development Research Centre (IDRC) Digital Library (Canada)

Smallish foreign direct investment, sluggish growth: Can MERCOSUR do better? 08 décembre 2010. Edgard Rodriguez. GGP One-pager series. Since the 1990s, foreign direct investment (FDI) has been on the rise worldwide. By 2008, the world's FDI flows amounted to about $1.7 trillion (although they are expected to go ...

15 CFR 806.15 - Foreign direct investment in the United States.

Science.gov (United States)

2010-01-01

... 15 Commerce and Foreign Trade 3 2010-01-01 2010-01-01 false Foreign direct investment in the... Foreign Trade (Continued) BUREAU OF ECONOMIC ANALYSIS, DEPARTMENT OF COMMERCE DIRECT INVESTMENT SURVEYS § 806.15 Foreign direct investment in the United States. (a) Specific definitions—(1) Foreign direct...

IMPLICATIONS OF FOREIGN DIRECT INVESTMENTS ON SMALL ANS MEDIUM ENTERPRISES IN ROMANIA

Directory of Open Access Journals (Sweden)

Nicoleta, MIHAILĂ

2014-11-01

Full Text Available Foreign investments contribute massively to the increase of business profitability. Attraction and efficient allocation of capital inflows (mainly in the form of high quality investment made at microeconomic level represent the main “engine” for GDP growth in medium and long term. This will facilitate private sector access to finance investments, encourage technology transfer and innovation, promote technological parks and business incubators, stimulate innovation and entrepreneurship, support female entrepreneurship, increase efficiency and labor productivity for private companies , as well as management practices based on the principle of investing in people. Analysing the business environment involves, among other things, identifying and removing barriers that produce strain effects of overcoming difficulties for firms, respectively: - the desire that the investment in human capital would have immediate effects; - Insufficient correlation of wage increases and granting bonuses with increasing productivity; - Dialogue and partnerships with universities that could bring competitive advantage stands sometimes in incipient phases;

Investment incentives, corporate taxation, and efficiency in the allocation of capital

Energy Technology Data Exchange (ETDEWEB)

Boadway, R

1978-09-01

The author shows that, within the strict confines of the neoclassical theory of investment, investment allowances and tax credits on gross investment over and above regular depreciation are efficient investment incentives in the sense that they do not distort the allocation of capital over investments of differing durabilities. Initial allowances, tax credits on net investments, tax credits on gross investment which are set against depreciation, and interest subsidies all distort investment decisions in favor of longer-lived investments. Accelerated depreciation schemes are generally distortionary as well, with the nature of the distortion depending upon how the tax depreciation rate is defined.

Financial Incentives to Promote Active Travel

OpenAIRE

Martin, Adam; Suhrcke, Marc; Ogilvie, David

2012-01-01

Context Financial incentives, including taxes and subsidies, can be used to encourage behavior change. They are common in transport policy for tackling externalities associated with use of motor vehicles, and in public health for influencing alcohol consumption and smoking behaviors. Financial incentives also offer policymakers a compromise between ?nudging,? which may be insufficient for changing habitual behavior, and regulations that restrict individual choice. Evidence acquisition The lit...

POLAND`S OUTWARD FOREIGN DIRECT INVESTMENT

Directory of Open Access Journals (Sweden)

Buczkowski Bogdan

2013-07-01

Full Text Available The paper contributes to the discussion of motives, determinants and effects of outward FDI of companies from emerging economies. We analyze the the scale, structure, geographical location and effects of Polish foreign direct investments as well as we prioritize their determinants. The interest of Polish companies in investing abroad has increased sharply over the last decade, due to the need to broaden the scale of business operations and geographical scope of their economic activities after the Poland`s accession to the European Union.

Tax Revenues in the Context of Economic Determinants

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Alena Andrejovská

2018-03-01

Full Text Available Despite the general recognition that taxes are generally a strong policy tool for assessing the macroeconomic impact of the country's alternative tax policies, taxes are often weakened by restrictions on tax revenue measurement. The aim of the contribution is to quantify the impact of selected macroeconomic indicators (gross domestic product, level of employment, public debt, foreign direct investments, effective tax rate, statutory tax rate on the total amount of tax revenues, taking into account the tax competitiveness of the 28 EU member states. There was used methods of three models of regression analysis: the pooling model, the fixed effects model and the random effects model. The hypothesis that the gross domestic product has the greatest impact on tax revenue has been tested. In conclusion, the analysis confirmed that the strongest correlation is between tax revenues and employment rate. Followed by foreign direct investment and gross domestic product. Increasing these determinants by 1 mil. € (increase in employment by 1% would increase tax revenues by 10 072 mil. € at the employment rate, by 383.1 thousand € for gross domestic product and by 434.2 thousand € for foreign direct investment.

Challenges and Problems in the Kosovo Reality Related to Foreign Direct Investment

Directory of Open Access Journals (Sweden)

MSc. Nexhat Shkodra

2015-06-01

Full Text Available Economic development is a goal aspired by many countries of the world, Kosovo included. In attaining such goals, many countries face numerous difficulties. Amongst the most often taken paths by various countries is the attraction of foreign direct investments to the country. The term investment includes a wide range of human activities in engaging financial means into one of the areas: immoveable property, bonds and shares, manufacturing and service projects, scientific research, technological development, personnel education, etc. Different from internal investment which is engaged by domestic investors in their own territories, Foreign Direct Investment, the topic of our study, is a form of investment which generates revenues by a company in the country and an affiliate branch outside the investor’s seat. Foreign Direct Investments generate relations through the local company and its branches outside the country. Foreign Direct Investments (FDIs are considered to be a strength giving life to economic development of a country, and especially the developing countries. They have an important role to play in a long-term development of a country, and not only as a capital source, but also in increasing competitive abilities of the domestic economy, by technological transfers, strengthening infrastructure, increased productivity and generation of new employment opportunities.

The Quality of Entrepreneurial Environment as a Factor of Foreign Direct Investments Inflows

Directory of Open Access Journals (Sweden)

Peter Kuzmisin

2013-12-01

Full Text Available The content of this paper is built on the fact that foreign direct investments have the potential to influence the structure and quality of economic development and competitiveness that many scientific researches and studies have already confirmed. The paper presents entrepreneurial environment as a significant factor for increasing country’s competitiveness. It clarifies and proves relationship between entrepreneurial environment, or more precisely its barriers, and foreign direct investment inflows. The starting point is identification of the barriers of the Slovak entrepreneurial environment according to Doing Business 2012 by comparing Slovakia with the Visegrad Four Countries. Subsequently relationship of barriers (paying taxes, trading across borders, enforcing contracts, protecting investors and FDI inflows on the sample of 25 leading countries for foreign investors according to FDI Confidence Index (Brazil, China, Germany, India, USA etc. is tested by Spearman's rank correlation test. The paper specifies barriers of EE, which removal would have a real impact on increasing FDI inflows into economy of Slovakia with relevant effects on its competitiveness.Research limitations were determined by the availability of statistical data, relatively large sample of surveyed economies in the world and comparison with other assessments (indices of FDI and competitiveness of countries. Given the limits on the scope of a magazine article, we will continue in our research in more detail in the future. Specific attention in this context will be devoted to the impact of investment incentives on FDI inflows. Methodology and selection of applied testing tool in synergy with selected statistical set of datas can bring new approach to the studied field and can stimulate extension of possibilities reached in this paper. The value of this paper lays in the specification of weak points of the Slovak entrepreneurial environment in the context of  its location

OUTWARD BRAZILIAN FOREIGN DIRECT INVESTMENT: IMPULSES AND RESPONSES

Directory of Open Access Journals (Sweden)

Ronald de Oliveira Concer

2010-12-01

Full Text Available This paper models the outward foreign direct investment from Brazil series using time a series econometrics model, namely the Vector Auto Regressive (VAR model. We have drawn impulse response functions for the key relevant factors that may explain the outward foreign direct investment flows. We start with a review of the literature on the Dunning location approach to international business. We worked with a data set of quarterly observations from Q1-1995 to Q1-2010. We carried also out Granger causality tests as for determining whether international business travelling should be included as an explanatory variable in our model. Results stressed that although the strong exchange rate in Brazil is often blamed for forcing companies to invest abroad, the evidence found in the aggregate data suggests that there is not a significant relationship between the level of foreign exchange rate and the outward Brazilian foreign direct investment. Differently from previous studies, this paper uses impulse response functions to present dynamic results, thus avoiding the typical binary results “affect” or “don’t affect”, and in so doing we provide a more detailed insight into this important location factor.

OUTWARD BRAZILIAN FOREIGN DIRECT INVESTMENT: IMPULSES AND RESPONSES

Directory of Open Access Journals (Sweden)

Ronald de Oliveira Concer

2010-01-01

Full Text Available This paper models the outward foreign direct investment from Brazil series using time a series econometrics model, namely the Vector Auto Regressive (VAR model. We have drawn impulse response functions for the key relevant factors that may explain the outward foreign direct investment flows. We start with a review of the literature on the Dunning location approach to international business. We worked with a data set of quarterly observations from Q1-1995 to Q1-2010. We carried also out Granger causality tests as for determining whether international business travelling should be included as an explanatory variable in our model. Results stressed that although the strong exchange rate in Brazil is often blamed for forcing companies to invest abroad, the evidence found in the aggregate data suggests that there is not a significant relationship between the level of foreign exchange rate and the outward Brazilian foreign direct investment. Differently from previous studies, this paper uses impulse response functions to present dynamic results, thus avoiding the typical binary results “affect” or “don’t affect”, and in so doing we provide a more detailed insight into this important location factor.

Support mechanisms for renewables: How risk exposure influences investment incentives

Directory of Open Access Journals (Sweden)

Lena Kitzing

2016-06-01

Full Text Available We analyse quantitatively how risk exposure from different support mechanisms, such as feed-in tariffs and premiums, can influence the investment incentives for private investors. We develop a net cash flow approach that takes systematic and unsystematic risks into account through cost of capital and the Capital Asset Pricing Model as well as through active liquidity management. Applying the model to a specific case, a German offshore wind park, we find that the support levels required to give adequate investment incentives are for a feed-in tariff scheme approximately 4-10% lower than for a feed-in premium scheme. The effect of differences in risk exposure from the support schemes is significant and cannot be neglected in policy making, especially when deciding between support instruments or when determining adequate support levels.

Federal tax incentives affecting coal and nuclear power economics

International Nuclear Information System (INIS)

Chapman, D.

1982-01-01

This paper analyzes the effect of federal corporate income tax incentives on coal and nuclear power developments. It estimates (1) the magnitudes of tax incentives in relationship to utility costs, (2) the relative magnitude of benefits going to coal and nuclear facilities, and (3) the influence which the time paths of tax payments and after-tax net income have upon possible incentives for premature construction and excess capacity. Utility planners currently believe that nuclear power enjoys an after-tax competitive advantage over coal plants. Investigation of investment-related credits, deductions, and exclusions in the Internal Revenue Code shows that nuclear power enjoys a more favorable tax subsidy because of its greater capital intensity. In the absence of tax subsidies, no utility would prefer nuclear power to coal generation. Tax changes now under consideration could increase the tax benefits to both without disturbing the differential advantage held by nuclear power. 43 references, 2 figures, 4 tables

Private Investment And Macroeconomic Instability In The Nigerian ...

African Journals Online (AJOL)

In the empirical analysis, the dependent variable is foreign direct investment and the expiratory variables are Total Government Expenditure, Gross domestic product and unemployment. In the analysis, it was observed that the most significant variable determining changes in private investment is Government expenditure.

PRICING AND ASSESSING UNIT-LINKED INSURANCE CONTRACTS WITH INVESTMENT GUARANTEES

Directory of Open Access Journals (Sweden)

Ciumas Cristina

2014-07-01

Full Text Available One of the most interesting life insurance products to have emerged in recent years in the Romanian insurance market has been the unit-linked contract. Unit-linked insurance products are life insurance policies with investment component. A unit-linked life insurance has two important components: protection and investment. The protection component refers to the insured sum in case of the occurrence of insured risks and the investment component refers to the policyholders’ account that represents the present value of the units from the chosen investment funds. Due to the financial instability caused by the Global Crisis and the amplification of market competitiveness, insurers from international markets have started to incorporate guarantees in unit-linked products. So a unit- linked life insurance policy with an asset value guarantee is an insurance policy whose benefit payable on death or at maturity consists of the greater of some guaranteed amount and the value of the units from the investment funds. One of the most challenging issues concerns the pricing of minimum death benefit and maturity benefit guarantees and the establishing of proper reserves for these guarantees. Insurers granting guarantees of this type must estimate the cost and include the cost in the premium. An important component of the activity carried out by the insurance companies is the investment of the premiums paid by policyholders in various types of assets, in order to obtain higher yields than those guaranteed by the insurance contracts, while providing the necessary liquidity for the payment of insurance claims in case of occurrence of the assumed risks. So the guaranteed benefits can be broadly matched or immunized with various types of financial assets, especially with fixed-interest instruments. According to Romanian legislation which regulates the unit-linked life insurance market, unit-linked life insurance contracts pass most of the investment risk to the

Preview of BPM6 Methodology and Analysis of Foreign Direct Investment in 2015 in Croatia

Directory of Open Access Journals (Sweden)

Šlogar Helena

2017-06-01

Full Text Available Foreign direct investments include equity capital, reinvested earnings and debt relations between ownership-related residents and non-residents. Since 31 October 2014, the Croatian National Bank has started to publish information in the field of statistics Relations (balance of payments, foreign debt and the IIP in accordance with the methodology prescribed by the sixth edition of the Manual on Balance of Payments (Eng. Balance of Payments and International Investment Position Manual, BPM6, thus changing the presentational form of direct investment. Direct investments are not classified according to the so-called direction of investments (Eng. directional principle on direct investment in Croatia and direct investment abroad anymore, but according to BPM6 apply the socalled principle of assets and liabilities (Eng. Assets / Liabilities principle. The aim is to point out the differences between the standards BPM5 and BPM6 and determine which activities and which countries are the most represented in the structure of direct investments in Croatia. By identifying relevant activities and countries in the structure of foreign direct investment, relevant information is obtained about the macroeconomic state of the Republic of Croatia and about the opportunities and potential dangers that certain activities and countries provide.

Refunded emission taxes: A resolution to the cap-versus-tax dilemma for greenhouse gas regulation

International Nuclear Information System (INIS)

Johnson, Kenneth C.

2007-01-01

Regulatory instruments for greenhouse gas control present a policy dilemma: Market-based instruments such as cap and trade function to reduce regulatory costs; but because they provide no guarantee that costs will be reduced to acceptable levels it is infeasible to set caps at sustainable levels. Emission taxes provide cost certainty, but their comparatively high cost makes it infeasible to set tax rates at levels commensurate with sustainability goals. However, there is a straightforward solution to this dilemma: Just as cap and trade uses free allowance allocation to minimize regulatory costs, an emission tax's cost can be mitigated by refunding tax revenue in such a way that emission reduction becomes profitable. A refunded tax, like cap and trade with free allocation, would be revenue-neutral within the regulated industry. Marginal competitive incentives for commercializing emission-reducing technologies would not be diminished by the refund, and the refund could actually make it politically and economically feasible to increase the incentives by an order of magnitude. Whereas cap and trade merely caps emissions at an unsustainable level while subjecting the economy to extreme price volatility, refunded emission taxes could create a stable investment environment with sustained incentives for emission reduction over a long-term investment horizon

Corporate tax structure and production

OpenAIRE

Bernstein, Jeffrey; Shah, Anwar

1993-01-01

The authors provide an empirical framework for assessing the effects of tax policy on an array of producer decisions about output supplies and input demands in Mexico, Pakistan, and Turkey. They specify and estimate a dynamic production structure model with imperfect competition for selected industries in these countries. The model results suggest that tax policy affected production and investment and further that selective tax incentives such as investment tax credits, investment allowances,...

DETERMINANTS OF FOREIGN DIRECT INVESTMENT DEVELOPMENT

Directory of Open Access Journals (Sweden)

Elena Chirila - Donciu

2013-12-01

Full Text Available FDI had a strong impact in the last three decades on economic growth, foreign trade and production structures in almost all countries. The purpose of this paper is to analyze the main factors that contribute to attracting foreign direct investment flows and also the competitiveness of the business environment in Romania and its implications on investment decisions and economic growth. Research results show that the presence of FDI goes to those areas that can provide efficiencies investment factors: skilled and qualified labor, educational and research institutions etc..

Renewable energy investment: Policy and market impacts

International Nuclear Information System (INIS)

Reuter, Wolf Heinrich; Szolgayová, Jana; Fuss, Sabine; Obersteiner, Michael

2012-01-01

Highlights: ► Feedback of decisions to the market: large companies can have an impact on prices in the market. ► Multiple uncertainties: analysis of uncertainties emanating from both markets and environment. ► Policy analysis: impact of uncertainty about the durability of feed-in tariffs. -- Abstract: The liberalization of electricity markets in recent years has enhanced competition among power-generating firms facing uncertain decisions of competitors and thus uncertain prices. At the same time, promoting renewable energy has been a key ingredient in energy policy seeking to de-carbonize the energy mix. Public incentives for companies to invest in renewable technologies range from feed-in tariffs, to investment subsidies, tax credits, portfolio requirements and certificate systems. We use a real options model in discrete time with lumpy multiple investments to analyze the decisions of an electricity producer to invest into new power generating capacity, to select the type of technology and to optimize its operation under price uncertainty and with market effects. We account for both the specific characteristics of renewables and the market effects of investment decisions. The prices are determined endogenously by the supply of electricity in the market and by exogenous electricity price uncertainty. The framework is used to analyze energy policy, as well as the reaction of producers to uncertainty in the political and regulatory framework. In this way, we are able to compare different policies to foster investment into renewables and analyze their impacts on the market.

DISPUTE RESOLUTION OF FOREIGN DIRECT INVESTMENT IN CHINA

Directory of Open Access Journals (Sweden)

Fiska Silvia Raden Roro

2012-09-01

Full Text Available Corruption activity in this modern era keeps hurting the implementation of foreign investment in Indonesia, especially for the dispute settlement aspect. Unfortunately, today, Indonesia is one of the interesting place for foreign investment destination, especially for consumer goods manufacturers. This situation happened because of Indonesia’s great resources which is totally supportive to business development activity. This article was intended to spur the development of Indonesia’s legal system, especially about foreign investment, and also to explain how the dispute resolution on foreign investment in Chinese Regime perspective, including considerations of how Chinese culture and settlement in foreign investment, methods of negotiation, mediation, arbitration. It will also be discussed how the practice of the settlement of disputes through litigation also the enforcement of foreign arbitral awards and the enforcement of a foreign court related to Chinese Regime.

Foreign direct investment in the United States and u.s. Interests.

Science.gov (United States)

Graham, E M

1991-12-20

Foreign direct investment entered the United States at unprecedented rates during the second half of the 1980s. The result has been much higher levels of foreign ownership of U.S. economic activities than those to which the nation has been accustomed. The reasons for this investment include loss of competitiveness of U.S. firms compared to international rivals as well as attractions to foreign investors of the United States itself. The economic effects of greater levels of foreign ownership are generally positive, although some problems with levels of competition could ensue. National security considerations might cause the United States to place some restrictions on this investment, but other restrictions at the present time appear to be unwarranted.

Calculating investment potential in South America

International Nuclear Information System (INIS)

Smith, J.L.

1995-01-01

Taxes and licensing provisions typically increase overall costs for private investors, and therefore impede private investment. In addition, the design and structure of tax systems in each country affect the extent to which financial risks are borne by private investors, rather than by the host government. Tax systems that increase perceived financial risks stemming from unpredictable oil prices, development costs and physical characteristics of undiscovered or undeveloped oil fields raise further impediments to private investment. This analysis focuses on both aspects of the investment climate--risk and return--and the way that investment incentives within three South American countries are influenced by tax and licensing regimes

Reaping the Rewards of Foreign Direct Investment

DEFF Research Database (Denmark)

Hansen, Michael W.

After a decade of steadily growing foreign direct investment (FDI) in extractives, Tanzania is now facing a virtual ‘take off ’ in extractive FDI. One of the concerns related to these investments is whether the foreign investors are linking up sufficiently with local firms through localized supply...

Foreign Direct Investment Relations between Myanmar and ASEAN

OpenAIRE

Thandar, Khine

2008-01-01

Myanmar highly appreciates foreign direct investment (FDI) as a key solution reducing the development gap with leading ASEAN countries. Accordingly, it is welcomed by the government. Myanmar's Foreign Investment Law was enacted in 1988 soon after the adoption of a market-oriented economic system to boost the flow of FDI into the country. Foreign investors positively responded to these measures in the early years and FDI inflow into Myanmar gradually increased during the period from 1989 to 19...

THE ROLE OF FOREIGN DIRECT INVESTMENT IN SUSTAINING CHINA’S ECONOMIC GROWTH

Directory of Open Access Journals (Sweden)

ANA-CRISTINA BÂLGĂR

2015-12-01

Full Text Available n over three decades and a half of spectacular economic growth – starting in 1979 with the launch of reform processes and with the dynamic mutations from an autarchic to a global model – the introduction and implementation of the policies targeting the use and attraction of foreign direct investment (FDI represented an exceptionally important stage in China’s history of international “openness,” playing an active role in the promotion, support and enhancement of its economic development. The aim of this article is to outline China’s sinuous investment path, from the autarchic pattern followed by the stage of economic openness characterised by the application of the “open doors” policy and up to the rethinking of the development paradigm and the country’s affirmation on the market as a new powerhouse in the global economy. Our research also aims to outline the implications that all these stages had on China’s current position of world leader in terms of inward FDI. As such, by means of comparative, quantitative and qualitative analyses, we will examine the evolution in time and the external impact of policies regarding the attraction of FDI, as well as the strategy aiming at incentivising Chinese outward investment – a relatively recent phenomenon – and the related support measures, in order to identify the country’s current development stage and its position in the global landscape, as well the possible challenges that China might face in the future.

Foreign Investment Boosts Rural Economies.

Science.gov (United States)

Glasmeier, Amy; Glickman, Norman

1990-01-01

Through 1987, 10 percent of foreign investment was in nonmetro counties; 44 percent of this was in the South; and 38 percent of nonmetro foreign investment created new jobs (versus 17 percent in metro areas). Foreign investors chose nonmetro areas with low wages, lack of unionization history, good transportation access, and government incentives.…

MULTINATIONAL COMPANIES AND FOREIGN DIRECT INVESTMENT

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Lucia P. BLĂJUȚ

2014-11-01

Full Text Available This paper highlights the significant share of multinational companies in international trade that are a factor of developing global economies. In the context of economic globalization the activity of multinational companies and their foreign direct investment have a strong impact on the host country which presents advantages and disadvantages for them. The main objective of this article is the review of the important role played by multinationals in economic development, especially in developed economies. In the economies in which they operate, they bring capital, technology transfer, improve the national reputation and influence the other companies to invest in this countries, they provide a substantial source of revenue for the government and always improve the balance of payments in the host country.

Driven to Support: Individual- and County-Level Factors Associated With Public Support for Active Transportation Policies.

Science.gov (United States)

Cradock, Angie L; Barrett, Jessica L; Chriqui, Jamie F; Evenson, Kelly R; Goins, Karin Valentine; Gustat, Jeanette; Heinrich, Katie M; Perry, Cynthia K; Scanze, Michele; Schmid, Thomas L; Tabak, Rachel G; Umstattd Meyer, M Renee; Valko, Cheryl

2018-03-01

To assess predictors of stated support for policies promoting physically active transportation. Cross-sectional. US counties selected on county-level physical activity and obesity health status. Participants completing random-digit dialed telephone survey (n = 906). Survey measures assessed stated support for 5 policies to promote physically active transportation, access to active transportation facilities, and time spent in a car. County-level estimates included household car dependence and funding for bicycle-pedestrian projects. Multivariable generalized linear mixed models using binary distribution and logit link, accounting for clustering within county. Respondents supported policies for accommodating bicyclists and pedestrians through street improvements (89%), school active transportation programs (75%), employer-funded active commuting incentives (67%), and allocation of public funding (68%) and tax support (56%) for building and maintaining public transit. Residents spending >2 h/d (vs public transit (OR: 1.85; CI: 1.24-2.77) improvements. Residents in counties investing >$1.6 million in bicycle and pedestrian improvements expressed greater support for funding (OR: 1.71; CI: 1.04-2.83) and tax increases (OR: 1.73; CI: 1.08-2.75) for transit improvements compared to those with lower prior investments (transportation is higher where relevant investments in active transportation infrastructure are large (>$1.6 M), public transit is nearby, and respondents drive >2 h/d.

Evaluating the Factors that Activate the Development of Public-Private Partnership in Foreign Economic Activity

Directory of Open Access Journals (Sweden)

Pyroh Olha V.

2017-12-01

Full Text Available The article is concerned with research on public-private partnership in foreign economic activity as process of interaction of the State and business-structures – entities of economic activity of Ukraine along with foreign entities of economic activity, this process includes attraction of investments, acceleration of economic development, etc. The factors determining public-private partnership in the foreign economic sphere (system of the State government bodies, system of economic relations in the State, financial resources of various States, experience in the implementation of public-private partnership projects, trust between partners are researched and generalized. Influence of each of the factors was defined by means of conjunctive analysis, determining that the system of economic relations in the State is most influenced by the formation of conditions, rules and implementation of principles of functioning of public-private partnership in the foreign economic sphere.

China’s Foreign Direct Investments:Challenges of Due Diligence and Organizational Integration

Institute of Scientific and Technical Information of China (English)

ABDOL; S.SOOFI

2015-01-01

This paper critically reviews Chinese companies’ foreign direct investment practices of recent years. Using case studies involving overseas Greenfield as well as merger and acquisition(M&A;) of Chinese enterprises, we aim to draw lessons from these experiences. However, because of increasing importance of outbound acquisitions by Chinese companies, this paper focuses on Chinese M&A; activities. After presenting the theoretical discussions of post-acquisition organizational integration, this paper identifies factors that have contributed to less than expected performances of Chinese foreign investments. Three main factors are identified as the plausible causes of the less than satisfactory outcomes: inadequate due diligence, not considering political and country risks, and cultural differences. In all cases, inexperience of Chinese enterprises in foreign direct investment, either in Greenfield form or M&A;, has attributed to the problems. Therefore, summing the experiences of the Chinese enterprises that have foreign direct investment is essential for those Chinese investors that intend to invest overseas. Conduct of meaningful, in-depth due diligence before serious negotiations for investment or acquisition, inclusion of risk premium for political risk in cash flow analysis, and early post-merger integration planning are essential for avoidances of bitter outcomes many Chinese investors experienced overseas.

Promoting renewable energy sources for heating and cooling in EU-27 countries

International Nuclear Information System (INIS)

Cansino, Jose M.; Pablo-Romero, Maria del P.; Roman, Rocio; Yniguez, Rocio

2011-01-01

In addition to public policies aimed at improving the energy efficiency of buildings, EU authorities have also promoted the use of Renewable Energy Sources for heating and cooling uses (RES H and C). This paper analyses the main policy measures implemented in EU-27 countries up to 2009: i.e. subsidies, tax incentives, financial support and feed-in tariffs. Twenty-three Member States (MSs) have developed some of these policy measures. The most widespread measure is the subsidy (22 MSs have implemented these) because from a political point of view, subsidies provide a straightforward approach to promote the use of RES H and C. Secondly, tax incentives have been used for reducing investment costs and making renewable energy profitable. Thirdly, financial incentives and feed-in tariffs have been used sparingly. While financial incentives might be used more extensively for promoting RES H and C if they are accompanied by other policy measures, feed-in tariffs are not likely to be implemented significantly in the future because this measure is not designed for household heat producers. - Highlights: → Main EU policies to reduce energy consumption are focused on buildings' efficiency. → Alternative incentives to promote the use of RES H and C in EU-27 are now studied. → Subsidies are the most widespread measure. → Tax incentives are used for reducing investment costs and making RES profitable. → Financial incentives and feed-in tariffs have been used sparingly.

CHINA’S ECONOMIC ACTIVITIES IN AFRICA: TRADE, FOREIGN DIRECT INVESTMENT AND AID

OpenAIRE

Michałowski, Tomasz

2014-01-01

The paper examines the nature of China’s economic activities in Africa in three dimensions: merchandise trade, foreign direct investment, and aid. These are three main channels through which China’s presence on the continent affects Africa’s economic growth and development. China’s economic relations with Africa are, to a large extent, driven by Chinese demand for natural resources, especially oil and minerals. It is the most visible in Sino-African trade, where fuels alone account for about ...

Options for Low Income Countries Effective and Efficient Use of Tax Incentives for Investment : A Report to the G-20 Development Working Group by the IMF, OECD, UN and World Bank

OpenAIRE

International Monetary Fund; OECD; United Nations; World Bank

2015-01-01

Experience shows that there is often ample room for more effective and efficient use of investment tax incentives in low-income countries. Tax incentives generally rank low in investment climate surveys in low-income countries, and there are many examples in which they are reported to be redundant, that is, investment will have been undertaken even without them. And their fiscal cost can b...

Federal Tax Incentives for Energy Storage Systems

Energy Technology Data Exchange (ETDEWEB)

Anderson, Katherine H [National Renewable Energy Laboratory (NREL), Golden, CO (United States); Elgqvist, Emma M [National Renewable Energy Laboratory (NREL), Golden, CO (United States); Settle, Donald E [National Renewable Energy Laboratory (NREL), Golden, CO (United States)

2018-01-16

Investments in renewable energy are more attractive due to the contribution of two key federal tax incentives. The investment tax credit (ITC) and the Modified Accelerated Cost Recovery System (MACRS) depreciation deduction may apply to energy storage systems such as batteries depending on who owns the battery and how the battery is used. The guidelines in this fact sheet apply to energy storage systems installed at the same time as the renewable energy system.

Modeling of Social Effect of Foreign Direct Investment in The Regions of Kazakhstan

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Dinara Zhaksylykovna Rakhmatullayeva

2015-06-01

Full Text Available In the article, the authors estimated the social effect of foreign direct investments (FDI in the regions of Kazakhstan. In order to do it, the authors studied the dynamics of FDI of the region operating enterprises with foreign participation and the regional six indicators of socio-economic development during 2003-2013 on the basis of database of RK Agency on statistics. There are 16 regions of Kazakhstan were involved in the experiment (14 provinces and 2 cities of republican significant — Almaty and Astana. The research was carried out using the “simplified” version of the T. Saati’s Analytic Hierarchy Process (AHP mathematical apparatus and MS Excel. The constructed economic-mathematical model of an assessment of FDI impact on the population welfare and living quality in the regions was hypothetical as the expert estimates of hypothetical expert were used. The authors made a hypothesis: to receive tools for an assessment of the social effect of FDI in the regions of Kazakhstan — the Rating of regional priority of the factors (RPF Rating. The RPF Rating allowed to define a priority of the factors of the population welfare and living quality in the regions of the country and to calculate aggregate social effect of FDI in Kazakhstan, having allocated the directions of its action on each of six factors in a regional section. The research did not reveal a negative impact of FDI on socio-economic development of the regions; moreover the aggregate social effect of FDI is positive for all regions of Kazakhstan. The authors believe that RPF Rating can become as the important tool of soundness of socio-economic policy in the area of development of public-private partnership in the regions of Kazakhstan, and also positive social effects of FDI growth in the long term — all of this will result in promoting a long-term positive impact on the welfare and living quality of the population of the republic.

THE DUALITY OF FOREIGN DIRECT INVESTMENTS. SUSTAINABLE GROWTH FOR COMPANIES AND COUNTRIES

Directory of Open Access Journals (Sweden)

LIVIU NEAMŢU

2016-04-01

Full Text Available Current civilization increasingly relies more and more on economic interdependence. In this context, the organizations, be they companies or states, are forced to grow by integrating these interdependencies into their development process. In this process of interdependent integration each participant identifies advantages wishing to exploit their own development process, pursuing a sustainable kind of development by avoiding any risks and identify as many opportunities. Direct investments in various world economies represent the spearhead for this process of identifying opportunities and reduce risk in a global development process. This process ensures both the safety on medium and long-term development and rapid application for their development plans of both companies and the economies of various countries of the world. Through this study we identified the main opportunities sought by world states in this process of internationalization of business and globalization of markets. But we also highlighted the limitations of this process and regulation needs of investing processes in order to ensure the sustainability of the process. The second advantaged component in this process of international expansion and increase of economic interconnection is represented by multinationals enjoying benefits far superior to those of states in the medium-term development. However the limits of investing process force the companies to require certain advantages or guarantees during the progress of investment processes. Thus, we highlight a duality of foreign direct investment opposing on the one hand the companies interested to secure their international operations and liberalization of markets and states requiring a relatively regulated investment process to avoid dependence on foreign capital.

The Role Of Foreign Investment In Economic And Social Development In Libya

Directory of Open Access Journals (Sweden)

Mustafa Khalifa Thawadi El. Hamoudi

2017-02-01

Full Text Available Investment is whether in local or foreign organization is the action Plan split by various investment activities The Libyan economy is among those economies that require this kind of foreign investment to achieve the desired economic goals which are correlated with the objectives of the Libyan economic system for subsequent stages. Therefore it is important to study the trends and determinants of FDI in developing in general and in Libya in particular. This paper describes the role that could be played by investment foreign investment in economic and social development in Libya pointing out the positive and negative aspects and how to deal with each of them in proportion to the facts of the Libyan Economy needs. And in the light of the new economic orientation in line with the political and economic developments in the international arena and foreign investment and thus contributing to the expansion of the ownership base and create job opportunities for citizen in this study will follow the descriptive approach through the way ahead obtained from digital data from various sources using the forms as required and discussed this paper to the definition of foreign investment evolved of investment determinants of FDI motivated encourage foreign investment history prospects for foreign direct investment in Libya Barriers to foreign direct investment in Libya Policies strategies to support foreign direct investment in Libya conclusions and recommendations.

Joint Ventures in Cuba: Opportunities for Direct Foreign Investment.

Science.gov (United States)

Tancer, Robert S.

1995-01-01

Presents a brief history of direct foreign investment in Cuba since 1982. This investment currently plays an important role in Cuba as a replacement to Soviet aid and as a means to earn foreign exchange. Tourism and mining are the preferred area for foreign investment because both of these sectors offer hard currency returns for Cuba. (20…

Spatial pattern of foreign direct investment of China's textile enterprises

Institute of Scientific and Technical Information of China (English)

2018-01-01

China textile industry has achieved encouraging achievements, becoming the primary industry of the integration of investment, production, consumption, employment increase and foreign exchange earnings. On the basis of reviewing studies on foreign direct investment of domestic textile enterprises, this paper come up with the structure analysis framework of spatial strategies of foreign investment of China's textile enterprises with the methods of statistical information, field research and interviews of senior managers. Besides, this paper analyze the spatial distribution and industry choices of foreign direct investment of China's textile enterprises.

Policy Pathways: Joint Public-Private Approaches for Energy Efficiency Finance

Energy Technology Data Exchange (ETDEWEB)

NONE

2012-09-06

This Policy Pathway outlines, through the experiences and lessons learned from country examples, the critical elements to put in place a public-private partnership to finance energy efficiency. It focuses on three mechanisms - dedicated credit lines, risk guarantees, and energy performance service contracts and presents the planning, implementing, monitoring, and evaluating phases of implemention. Accelerating and scaling up private investment in energy efficiency is crucial to exploit the potential of energy efficiency. However many barriers remain to private investment such as access to capital, uncertainty of future energy prices, transaction costs, perceived higher risk, and lack of knowledge. As part of the IEA 25 Energy Efficiency Policy Recommendations, the IEA recommends that governments support private investment in energy efficiency. A joint public-private approach can use public finance and regulatory policy to support the scaling up of private investment in energy efficiency.

76 FR 30539 - Historic Preservation Certifications for Federal Income Tax Incentives

Science.gov (United States)

2011-05-26

... Preservation Certifications for Federal Income Tax Incentives AGENCY: National Park Service, Interior. ACTION... historic structures'' or ``certified rehabilitations'' for Federal income tax incentives. (3) This rule... changes proposed in the rule are purely technical. Moreover, the tax incentives program involves purely...

Foreign direct investment (FDI) in energy/electricity projects in the economies in transition

International Nuclear Information System (INIS)

Brendow, K.

1995-01-01

Registered foreign direct investments (FDI) in energy/ electricity projects in central and eastern Europe and the CIS are weak and disappointing compared with expectations and business opportunities. In addition, energy FDI is highly concentrated in oil and gas exploration/extraction. FDI opportunities in electricity generation, transmission and distribution while being explored, have not been implemented, mostly for legislation restriction reasons towards foreign participation. The major issue appears to be the extent of privatization of this politically and socially sensitive industry. Progress are made in Hungary, Poland and the Czech Republic. A significant breakthrough depends on political stability, economic recovery and progress in privatization. 2 figs

Profiles of foreign direct investment in US energy, 1991

International Nuclear Information System (INIS)

1993-01-01

Profiles of Foreign Direct Investment in US Energy 1991 describes the role of foreign ownership in US energy enterprises, with respect to investment, energy operations, and financial performance. Additionally, since energy investments are made in a global context, outward investment in energy is reviewed trough an examination of US-based companies' patterns of investment in foreign petroleum. The data used in this report come from the Energy Information Administration (EIA), the US Department of Commerce, company annual reports, and public disclosures of investment transactions

Profiles of foreign direct investment in US energy, 1990

International Nuclear Information System (INIS)

1992-01-01

Profiles of Foreign Direct Investment in US Energy 1990 describes the role of foreign ownership in US energy enterprises, with respect to investment, energy operations, and financial performance. Additionally, since energy investments are made in a global context, outward investment in energy is reviewed through an examination of US-based companies' patterns of investment in foreign petroleum. The data used in this report come from the Energy Information Administration (EIA), the US Department of Commerce, company annual reports, and public disclosures of investment transactions

TAX COMPONENT OF FISCAL POLICY OF INCREASE COMPETITIVENESS OF NATIONAL ECONOMICS

Directory of Open Access Journals (Sweden)

A. Danilov

2013-08-01

Full Text Available The article is devoted to the problems of using fiscal levers to regulate the national economy competitiveness. What kind of tax levers should be used in order to increase the competitiveness of the national economy is justified. Taxes are the main source of fiscal revenue of the country, which depends on the inherent principles of optimizing the tax system, determined Ukraine's withdrawal from the crisis and raising the country's competitiveness. It is proposed differentiation in income tax rates, depending on whether the company is engaged in innovation and investment activity or not. Changing the rate of value added tax in a downward will reduce the revenue of the country. For enterprises that are not exporting products to decrease the amount of working capital for a certain period Fiscal policy that promotes the removal of the country's financial and economic crisis and the increasing competitiveness of the state, should be challenging. In order to implement incentive effects of taxes set forth in the tax code, we propose a linear programming model of the budget (revenue and expenditure . Building the economic and mathematical optimization model with possible actions challenging the tax factors of individual taxes and the possibilities of using the proceeds of certain taxes on certain items of expenditure budget.

75 FR 53611 - Direct Investment Surveys: BE-577, Quarterly Survey of U.S. Direct Investment Abroad-Direct...

Science.gov (United States)

2010-09-01

...] RIN 0691-AA75 Direct Investment Surveys: BE-577, Quarterly Survey of U.S. Direct Investment Abroad--Direct Transactions of U.S. Reporter With Foreign Affiliate AGENCY: Bureau of Economic Analysis, Commerce...-577 quarterly survey of U.S. direct investment abroad. The survey is conducted quarterly and obtains...

Chinese outward foreign direct investments to Europe

NARCIS (Netherlands)

Blomkvist, Katarina; Drogendijk, Rian

This paper addresses Chinese outward foreign direct investments (OFDI) in Europe. We aim to provide more knowledge on the ongoing research discussion about Chinese OFDI, more specifically, we answer questions about what is driving Chinese firms to invest in Europe, and whether Chinese investment

税负抑制了公司投资吗?——基于国有股权私有收益的解释%Does Expected Tax Burden Discourage Corporate Investment? Explanation Based on Private Benefits of State-owned Shares

Institute of Scientific and Technical Information of China (English)

林旭; 苏宏通; 朱凯; 陈信元

2018-01-01

right view. We analyze state ownership structure from a tax perspective,examine the influence of the expected tax burden on corporate investment decisions,and then integrate two explanations mentioned above. In traditional corporate finance theory,both state-owned and non-state-owned controlling shareholders have indiscrimination. Both of them get returns on investment according to the proportion of shares,and the private benefits of control at the same time. However,compared with other types of shareholders,the govern-ments,as the ultimate controllers of SOEs,can not only get equity gains and control rights,but also get tax revenues paid by the companies. Although the governments can also obtain tax benefits from private enter-prises,it is difficult for the governments to ensure tax revenues by intervening directly in business decisions of the private enterprises. In contrast,in the SOEs,the governments as the controlling shareholders can directly intervene in the business decisions of SOEs,so as to ensure the implementation of the tax revenues. Unlike the equity gains and the private benefits of control rights,the tax benefits are monopolized by the state. Therefore,the tax benefits could not be incorporated in the market price,which makes the market value underestimate the overall value of the state-owned controlled shareholders to a certain extent. When there is a conflict between tax benefits and returns on equity,the governments are more inclined to get exclusive tax be-nefits. The private benefits for state-owned holding rights cause the special agency problems between state-owned controlling shareholders and minority shareholders. This paper aims to clarify and analyze how agency problem affects corporate(especially SOEs)investing decisions. This paper takes the sample of listed companies from 2004 to 2013,and compares the relationship between corporate investment and expected tax burden under different ownership structure of listed compan

Impact of future tax incentive legislation on the development of biomass energy

International Nuclear Information System (INIS)

Middleton, G.L. Jr.

1991-01-01

Historically, the use of biomass as an energy source has been subsidized by generous tax incentives. These tax incentives took the form of tax-exempt financing, the energy tax credit, the investment tax credit, and short depreciation lives. Common with tax incentives in other areas, the tax incentives for biomass projects have been curtailed in recent years. Given the appetite of Congress for revenue, it is not likely that the recent trend will reverse. If changes do occur, they are likely to involve liberalization of some oof the rules for tax-exempt debt. But even under current law, there are still tax advantages available for biomass energy projects, of which potential developers should be aware

Chalenges and opportunities brought by foreign direct investments in Brazil

Directory of Open Access Journals (Sweden)

Eveline Barbosa Silva Carvalho

2008-01-01

Full Text Available This paper analyzes the challenges and opportunities brought by foreign direct investment in general and in Brazil particularly. The study is based on literature review and statistical data show that foreign direct investments have important effects on the business environment of the host country as they bring productivity improvement, formal employment and income generation, increase on the export level, establishment of firms with high innovation standards and the capacity to improve the quality of national products, with some degree of technology diffusion, increases in the network of suppliers and possible buyers, and the introduction of new strategies of business management, logistics as well as other ways of modernizing industrial structures. It concludes that the major benefits from foreign direct investments are the change on local companies strategies. The study also shows that investments are concentrated on most developed areas and that there is no specific strategy for investment attraction to the less economically favored areas of Brazil.

Examining the Regional Aspect of Foreign Direct Investment to Developing Countries

DEFF Research Database (Denmark)

Sunesen, Eva Rytter

This paper applies a general-to-specific analysis to detect regularities in the driving forces of foreign direct investment (FDI) that can explain why some regions are more attractive to foreign investors than others. The results suggest that regional differences in FDI inflows to African, Asian...... at improving the investment climate for foreign investors. This also means that there is no African bias. Among a large number of return and risk variables applied in the empirical literature, growth and inflation turn out to be the only robust and significant FDI determinants across regions although the size...... and Latin American countries can be fully explained by structural characteristics rather than fixed regional effects. The implication of this finding is that countries that are lagging behind other developing countries in attracting foreign capital have the opportunity to implement policies aimed...

THE IMPACT OF THE ECONOMIC CRISIS ON FOREIGN DIRECT INVESTMENT IN ROMANIA

Directory of Open Access Journals (Sweden)

CIURLĂU LOREDANA

2014-05-01

Full Text Available Foreign Direct Investment (FDI bring an essential contribution to economic growth. They create jobs, optimize the allocation of resources, technology transfer and stimulate trade. Doing business in Romania needs friendly taxation and economic freedom for entrepreneurs, including to foreign investors, creating a favourable economic environment framework by promoting conditions conducive to attracting foreign investors, such as: fair treatment, fair and non-discriminatory manner; protection from illegal situated between kilometeres; the appeal directly to international arbitration, as well as the transformation of Romania into an attractive environment in terms of taxation.

Sovereign Wealth and Pension Funds Controlling Canadian Businesses: Tax-Policy Implications

Directory of Open Access Journals (Sweden)

Vijay Jog

2013-02-01

Full Text Available In a world without taxes, investors that take over companies would do so because they expect to be able to operate the business efficiently and at a high rate of return. But in Canada today, some acquirers enjoy tax advantages over others. And that could mean that certain buyers, who may not be best suited to owning a particular company, are able to outbid those who are better positioned to run that company at optimal efficiency. That is a problem not just for investors who end up outbid, due to Canada’s uneven tax policy, but for the Canadian economy, which suffers from the resulting economic inefficiency. With respect to registered pension plans, the so-called 30-per-cent rule puts a cap on the amount of voting equity in a company that they are permitted to own. Meanwhile, however, sovereign wealth funds — whether controlled by China or Australia — face no such limit when purchasing stakes in Canadian firms. The number and size of sovereign wealth funds, globally, is only growing — and rapidly. But as Canada increasingly attracts foreign capital, with foreign-controlled government-affiliated funds seeking out Canadian takeover targets, much of the discussion around public policy has focused primarily on the Investment Canada Act and the “net benefit test” for foreign direct investment. Another component in ensuring that Canadian interests are preserved, however, is the question of whether Canadian institutional investors can operate on a level playing field with foreign sovereign wealth funds. With the 30-per-cent rule limiting equity purchases for one but not the other, it would appear that they are not. The most appealing remedy to this imbalance is a tax solution: limiting the corporate deductions on interest, fees, royalties, rents, and the like, that so often factor in to the takeover calculation, as part of a tax-minimization strategy. This would not only put pension funds and sovereign wealth funds on equal footing, but it

Domestic climate regimes and incentives for private sector involvement in joint implementation

Energy Technology Data Exchange (ETDEWEB)

NONE

1997-12-31

This report analyses how effective incentive structures can be put in place for private sector involvement in pilot projects (AIJ, Activities Implemented Jointly) and, in due time, joint implementation (JI). Due to the short time record of AIJ/JI experience, lessons are drawn from other related policy areas: studies of public/private interface in environmental- and climate policy in the Netherlands, USA, Norway and Costa Rica. The report concludes with status and prospects for private sector incentives in the pilot phase and then provides lessons and proposals for such incentives in a more mature and ambitious JI regime with crediting. 22 refs.

The effects of public debt on foreign direct investment in South Africa (1983-2013: An empirical analysis

Directory of Open Access Journals (Sweden)

Mary Oyemowo Oche

2016-12-01

Full Text Available The political move in South Africa occurred against a setting of high government deficits. Efforts have been made over the years by the government to reduce fiscal deficit and inflation, liberalize the capital account and the financial system as well as reduce tariffs. The main objective of this study, therefore, is to empirically investigate the effect of public debt on foreign direct investment in South African for the period 1983 – 2013. The study employs a Vector Error Correction Model, which provides both the long run and short run relationships among the variables. The long run results indicate that the relationship between public debt and foreign direct investment, as well as interest rate and foreign direct investment, is positive and statistically significant, while there is an insignificant negative relationship between exchange rate and foreign direct investment. Based on the long run results, the study, thus, recommend that the level of public debt and interest rate should increase so that the level of foreign direct investment can increase in the country. However, the policy of depreciation of rand is considered inappropriate for the economy if the desire is to increase the level of foreign direct investment in the country

The Impact Of The Foreign Direct Investment On Romania’s Economy

OpenAIRE

Mihaela Ioneci; Georgiana Mîndreci

2010-01-01

Foreign direct investment can be regarded as a factor out of the crisis of the Romanian economy. The relationship between the foreign direct investment and the gross domestic product is beneficial for the economy to the extent to which investment is directed towards innovation and new technologies. The virtuous circle diversity - change - technology needs investment to take effect. Microeconomic level investment completes the strategies and the investment decisions at macroeconomic level.

The impact of regulation, privatization and competition on gas infrastructure investments

International Nuclear Information System (INIS)

Andrade, Tiago

2014-01-01

In recent years we have witnessed several reforms in network industries, as privatization, regulatory changes and opening to competition in certain segments of the value chain. In sectors such as electricity and gas, this opening to competition is possible only in certain activities (i.e. generation, storage of natural gas and supply), maintaining as a natural monopoly the activities of distribution and transmission, and therefore still subject to regulation. The performance of these regulated segments can have important effects on the operation of the competitive segments, because the regulated segments (i.e. the transmission and distribution networks) provide the infrastructure platform upon which the competitive activities rely. The motivation of this paper is to evaluate the effects of privatization, liberalization and regulation on investments, as components of the reform of the natural gas sector. An empirical analysis was carried out using a panel data of 11 European countries from 2001 to 2011, with the aim to better understand the determinants influencing investment, thus contributing to a better understanding of the dynamics of this sector and meet the investments needs established by energy policies. - Highlights: • We carried out an empirical analysis using a panel data of 11 European TSO's from 2001 to 2011. • Privatization has a significant impact on investments, “more privatization means less investment”. • Different forms of regulation seem to play an important role in transmission investment. • It was found that incentive regulation has a positive impact leading to a higher investment more than rate of return. • Efficiency is an effective driver to increased investment. TSO's “only” invests if they have good operational efficiency

Limiting the financial risks of electricity generation capital investments under carbon constraints: Applications and opportunities for public policies and private investments

Science.gov (United States)

Newcomer, Adam

Increasing demand for electricity and an aging fleet of generators are the principal drivers behind an increasing need for a large amount of capital investments in the US electric power sector in the near term. The decisions (or lack thereof) by firms, regulators and policy makers in response to this challenge have long lasting consequences, incur large economic and environmental risks, and must be made despite large uncertainties about the future operating and business environment. Capital investment decisions are complex: rates of return are not guaranteed; significant uncertainties about future environmental legislation and regulations exist at both the state and national levels---particularly about carbon dioxide emissions; there is an increasing number of shareholder mandates requiring public utilities to reduce their exposure to potentially large losses from stricter environmental regulations; and there are significant concerns about electricity and fuel price levels, supplies, and security. Large scale, low carbon electricity generation facilities using coal, such as integrated gasification combined cycle (IGCC) facilities coupled with carbon capture and sequestration (CCS) technologies, have been technically proven but are unprofitable in the current regulatory and business environment where there is no explicit or implicit price on carbon dioxide emissions. The paper examines two separate scenarios that are actively discussed by policy and decision makers at corporate, state and national levels: a future US electricity system where coal plays a role; and one where the role of coal is limited or nonexistent. The thesis intends to provide guidance for firms and policy makers and outline applications and opportunities for public policies and for private investment decisions to limit financial risks of electricity generation capital investments under carbon constraints.

26 CFR 1.1442-1 - Withholding of tax on foreign corporations.

Science.gov (United States)

2010-04-01

... governments, international organizations, foreign tax-exempt corporations, or foreign private foundations, see... 26 Internal Revenue 12 2010-04-01 2010-04-01 false Withholding of tax on foreign corporations. 1... (CONTINUED) INCOME TAX (CONTINUED) INCOME TAXES Withholding of Tax on Nonresident Aliens and Foreign...

Spatial Policy оf Exporting Direct Investments: Features оf China

Directory of Open Access Journals (Sweden)

Alina Nikolaevna Novopashina

2014-03-01

Full Text Available In recent years, China has shown rapid growth in volumes of foreign direct investment (FDI, which is the consequence of implementing policy. However, the structure of FDI does not correspond to the government-supported areas. Existing theoretical and empirical studies don’t reveal the causes of China’s FDI. Results of the regression analysis (based on panel data for 2003-2010 prove that the most attractive for Chinese investors were countries with following features: 1 rich in mineral resources, 2 possessing advanced technologies, 3 higher than in China income levels, 4 geographic proximity to China and 5 foreign trade openness. Furthermore, features of the current institutional environment in China affect the directions of foreign direct investment. Investors from PRC direct FDI in developing countries which have low quality of institutions as well as China. Investing in these countries is primarily aimed at getting access to their mineral resources and consumer markets. As for investing in developed countries, the reason is acquisition of advanced technologies which they possess. Directions of FDI in these countries, on the contrary, are determined by the high quality of institutions

Technology Spillover from Foreign Direct Investment in Turkey

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Özcan Karahan

2016-12-01

quarterly data for the period of 2002 and 2015 in Turkey. Thus we try to examine whether technological diffusion generated by FDI inflows to Turkey enhances the innovative capability of the country or not. Design/methodology/approach – The variables Foreign Direct Investment (FDI and Gross Domestic Product (GDP are sourced from Electronic Data Delivery System (EDDS in Central Bank of the Republic of Turkey. FDI series consist of values called "Net Incurrence of Liabilities" in Balance of Payments Analytical Presentation while GDP series gather from the expenditure based GDP data in EDDS. Both Johansen Cointegration Test and Granger Causality Test are applied to examine between Foreign Direct Investment flows and economic growth in Turkey. Findings – Results reveal that there is not any significant link among the FDI and economic growth during the studied time period in Turkey. It seems that FDI inflows to Turkey is not complementary to economic growth, which shows that positive spillover effect sourced from FDI inflows to Turkey does not exist. Research limitations/implications – Policymakers should recognize that technology spillover effects of FDI do not occur without greater absorptive capacity. Attracting FDI is only one part of the story and thus not yield the desired benefits itself. Positive effects of FDI depends on the overall incentive and capacity structure of the host country. Then the key policy implication here is that policymakers should give same weight of policies aimed at attracting FDI versus those that seek to improve local economic conditions. Originality/value – This study insight the spillover effects of FDI based on Turkish experience that benefits from FDI do not occur automatically and effortlessly in developing countries.

Yatırım Promosyon Ajanslarının Doğrudan Yabancı Yatırımları Çekme Başarılarının Çekim Modeli ile İncelenmesi(An Investigation of the Succes of Investment Promotion Agencies For Attracting Foreign Direct Investment Using Gravity Model

Directory of Open Access Journals (Sweden)

Levent Necmi AKTÜRK

2012-01-01

Full Text Available The competition about receiving foreign direct investment (FDI towards countries has increased with the concentration of the globalization. This is the most important reasons for the increase in FDI competition, they provide one of the positive contributions that host countries. Nowadays, investment promotion agency (IPA has been established to catch more FDI in many countries. These agencies give institutional help to foreign investors and all kinds of problems faced by the country on hand to advise. The aim of this study is to estimate the effects of IPA’s on FDI’s by employing unbalanced panel gravity model and than study the diversity of the existing literature reveals that this feature. These results will be used to assess the success of IPA’s toward their main goals.

Financial incentives to promote renewable energy systems in European electricity markets: a survey

International Nuclear Information System (INIS)

Haas, R.; Huber, C.; Wohlgemuth, N.

2001-01-01

Renewable energy systems may contribute to sustainable development. Therefore, one of the challenges for energy policy is to ensure that renewable energy options have a fair opportunity to compete with other supply resources. This paper presents a survey on promotion mechanisms to enhance the market penetration of renewable energies in European electricity markets. Strategies include rebates and tax incentives, regulated rates, system benefit charges, bidding-oriented mechanisms and various types of green pricing programs. The paper concludes that efficient promotion mechanisms should focus on incentives per kWh generated rather than on rebates on the investment in generating capacity (kW), and that there is no one single program type which has the best application to the promotion of all renewable technologies. For example, enhanced buy-back rates work as a dissemination strategy for wind energy but they do not work for photovoltaics. (author)

Illicit financial flows and foreign direct investment in developing countries

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Emmanuel Innocents Edoun

2016-12-01

Full Text Available Africa is facing a number of challenges that are negatively affecting socio-economic development at all levels of governments and local governments are expected to play a leading role for Africa’s development. One of these challenges are illicit financial flows that are perceived by many as a crime against Africa’s transformation. The continent is losing billions of dollars every year because of tax evasion, corruption and inappropriate transfer pricing and maladministration. With tax being one of Africa’s main sources of revenue, current and past researches revealed that, illicit financial flows (IFFs cripple African Governments tax base as a results of capital outflows and lack of good governance. This situation obviously is a challenge for Africa’s development as governments struggle to finance structuring projects and this in turn compels these governments to seek funds from international organisations at very high interest rates. It is also important to reveal that Foreign Direct Investment (FDI rapidly grew after the Second World War with the intention to maximize profit on investment in less developed countries and specifically in the African continent. In competing in Africa, most multinationals main objective is to pay less tax, make extensive profits and transfer the proceeds to their country of origin. This subsequently gave rise to illicit financial flows in Africa where the continent is losing billions of dollars. Past studies equally revealed that, Africa’s revenue could increase between 55 and 65%, if appropriate mechanisms of monitoring the flows were in place. This study therefore is based on the premise that, tax evasion, illicit financial flows, corruption and abusive transfers pricing are all factors that affect Africa’s development. Using appropriate method of inquiry, this study wants to demonstrate the presence of FDI’s in Africa as a modus operandi behind tax evasion. It also using the �

75 FR 57217 - Direct Investment Surveys: BE-11, Annual Survey of U.S. Direct Investment Abroad

Science.gov (United States)

2010-09-20

... both U.S. and international definitions for foreign direct investment and must be represented in the...] RIN 0691-AA74 Direct Investment Surveys: BE-11, Annual Survey of U.S. Direct Investment Abroad AGENCY... the reporting requirements for the BE-11, Annual Survey of U.S. Direct Investment Abroad. The survey...

Present international patterns of foreign direct investment: underlying causes and some policy implications for Brazil

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François Chesnais

2013-12-01

Full Text Available An important feature of the 1980s has been the substantial fall in the flow of foreign direct investment (FDI to the developing countries and also, with the limited exception of the Asian NIE (Korea, Taiwan, Malaysia, Singapore and China, to the newly industrialized countries, in particular those in Latin America. FDI has been concentrated more than ever among the advanced industrialized countries of OECD. The same period has witnessed a number of extremely important changes, both in the nature and location of basic or key technologies, the role of technology in industrial competitiveness; the most appropriate industrial management paradigm following the difficulties of the "Fordist" one; the nature of predominant international supply or market structures; and the relationships between productive and financial capital. Today a number of governments in developing countries and in NIC, among them the new government of Brazil, are again engaged in an attempt to attract FDI and to make foreign capital one of the major pillars of industrial revival and future growth. This paper argues that this policy objective is both fairly illusory and largely mistaken. It is fairly illusory in that it seriously underestimates the nature and strength of the structural factors which have been at work since the mid-1970s and seriously modified the strategies and investment priorities of the TNC which under took the brunt of the investment in developing countries and NICs in the earlier "golden age" of the 1960s and 1970s . The objective of luring foreign capital again to Brazil in ways and on a level similar to the 1960s is also largely mistaken in that it fails to recognize that the change in technological paradigms has modified the parameters of international technology transfers (cf. Ernst and O'Connor, 1989 and made indigenous and endogenous industrial growth dependent to a much higher degree than in the previous period (19601975 on factors which foreign capital

The Impact of Foreign Direct Investment on the Export Performance: Empirical Evidence for Western Balkan Countries

Directory of Open Access Journals (Sweden)

Dr.Sc. Nasir Selimi

2016-07-01

Full Text Available Recently there are many authors that have studied and analyzed the impact of foreign direct investments (FDI on the export performance. They have different opinions about the effect of foreign direct investments on the export performance. Some of them in their papers conclude that FDI have positive effect on the export performance and some not. There are also findings that FDI do not have any impact on the export performance. Of course for economic benefit of host country it is not important only the amount of FDI, but also their structure. To measure the effect of FDI on the export performance is not easy. Therefore, the main objective of this paper is to analyze empirically the foreign direct investments and exports performance during the period of 1996-2013 in Western Balkan countries. The paper also investigates for the fixed effects and individual heterogeneity across countries and years. Based on the panel regression techniques and Least Square Dummy Variable (LSDV regression method, FDI positively affect export performance in the sample countries in various model specifications. The results and conclusions of this paper we hope that will help everybody who are interested and studying this matter, especially the policy makers.  The last ones have the obligation to facilitate and promote the export if they award confirm that FDI contribute on developing their economy.

Exchange Rate Movement and Foreign Direct Investment in Asean Economies

OpenAIRE

Lily, Jaratin; Kogid, Mori; Mulok, Dullah; Thien Sang, Lim; Asid, Rozilee

2014-01-01

The inflows of foreign direct investment (FDI) are important for a country's economic development, but the world market for FDI has become more competitive. This paper empirically analyses the exchange rate movements and foreign direct investment (FDI) relationship using annual data on ASEAN economies, that is, Malaysia, the Philippines, Thailand, and Singapore. By employing ARDL bounds test approach, the empirical results show the existence of significant long-run cointegration between excha...

CORRUPTION AND FOREIGN DIRECT INVESTMENT. EVIDENCE FROM CENTRAL AND EASTERN EUROPEAN STATES

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Cristina Mihaela Amarandei

2013-09-01

Full Text Available This paper examines the impact of corruption on foreign direct investment inflows for ten Central and Eastern European states. The paper attempts to answer the question: what is the role of corruption in attracting foreign direct investments? Using the data from UNCTAD for foreign direct investment and Corruption Perception Index from Transparency International, for a period of 12 years, 2000-2012, we evaluate the specific impact of corruptions on FDI using GDP as control variable. Our results confirm the majority of literature and show a negative significant relation between the variables analyzed, but at a lower intensity than expected.

Energy efficiency investments in the context of split incentives among French households

International Nuclear Information System (INIS)

Charlier, Dorothée

2015-01-01

The residential sector offers considerable potential for reducing energy use and greenhouse gas (GHG) emissions, particularly through energy-efficient renovations. The objective of this study is twofold. First, I aim to provide initial empirical evidence of the extent to which split incentives between landlords and tenants may lead to underinvestment. Second, I investigate the influence of tax credits and energy burdens on energy efficiency expenditures. Given the complexity of studying the decision to invest in energy-saving renovations, I use a bivariate Tobit model to compare decisions about energy-efficient works and repair works, even when the renovation expenditures seem quite similar. The analysis shows that tenants are doubly penalized: they have high energy expenditures due to energy-inefficient building characteristics, and because they are poorer than homeowners, they are unable to invest in energy-saving systems. The results also confirm that tax credits are ineffective in the split incentives context. In terms of public policy, the government should focus on low-income tenants, and mandatory measures such as minimum standards seem appropriate. Financial support from a third-party financer also might be a solution. - Highlights: • I provide empirical evidence of underinvestment due to split incentives. • I investigate the influence of tax credit and energy burden on EE expenditures. • Results show that tax credits are ineffective in a context of split incentives. • Mandatory measures such as minimum standards seem to be appropriate. • Financial support from a third party financer can be also a solution.

IMPACT OF FOREIGN DIRECT INVESTMENT ON HIGHER EDUCATION

OpenAIRE

Kalpana Singh; Dr. Alka Awasthi

2017-01-01

The purpose of this paper is to examine how Foreign Direct investment (FDI) can be leveraged to enhance its impact on Higher Education. This paper attempts to discuss the possibilities of bringing quality, excellence and more opportunities in “Higher education” through the FDI route. FOREIGN DIRECT INVESTMENT: Education sector is growing day by day and gaining lots of importance in the world and India as well. Education Industry is likely to grow by the Gross Enrolment Ratio (GER) by 2020. Fo...

Foreign Investment in the U.S.: Costs and Benefits. Headline Series 249.

Science.gov (United States)

Zupnick, Elliot

The document discusses the implications and positive and negative aspects of foreign direct investment in the United States. The objective is to determine whether a restrictive U.S. policy as it relates to foreign direct investment in the United States is desirable. It is presented in five chapters. Chapter I defines foreign direct investment…

Practitioner perspectives matter: Public policy and private investment in the U.S. electric power sector

Science.gov (United States)

Barradale, Merrill Jones

This dissertation examines the influence of attitudes, beliefs, and preferences of energy industry practitioners on investment decision-making with regard to fuel choice for new electric power plants. The conclusions are based on in-depth interviews and an extensive online survey I conducted of 600-800 energy professionals in the U.S. power sector. Chapter 1 analyzes the impact of policy uncertainty on investment decision-making in renewable energy, using the federal production tax credit (PTC) and wind energy investment as an example. It is generally understood that the pattern of repeated expiration and short-term renewal of the PTC causes a boom-bust cycle in wind power plant investment in the U.S. This on-off pattern is detrimental to the wind industry, since ramp-up and ramp-down costs are high, and players are deterred from making long-term investments. The widely held belief that the severe downturn in investment during "off" years implies that wind power is unviable without the PTC turns out to be unsubstantiated: this chapter demonstrates that it is not the absence of the PTC that causes the investment downturn during "off" years, but rather the uncertainty over its return. Specifically, it is the dynamic of power purchase agreement negotiations in the face of PTC renewal uncertainty that drives investment volatility. This suggests that reducing regulatory uncertainty is a crucial component of effective renewable energy policy. The PTC as currently structured is not the only means, existing or potential, for encouraging wind power investment. Using data from my survey, various alternative policy incentives are considered and compared in terms of their perceived reliability for supporting long-term investment. Chapter 2 introduces the concept of expected payment of carbon as a factor in investment decision-making. The notion of carbon risk (the financial risk associated with CO2 emissions under potential climate change policy) is usually incorporated into

THE DYNAMICS OF FOREIGN DIRECT INVESTMENT IN ROMANIA AFTER EU ACCESSION

Directory of Open Access Journals (Sweden)

Nicoleta Rusu

2010-12-01

Full Text Available Identification of potential investment of the countries in the current context is one of the main important problem of the world economy because the investments, particularly foreign ones, is considered the key factor for economic growth and development. Foreign direct investments are an alternative source for financing the national economy, with a tendency in recent years of a positive effect on the Romanian economy. This paperwork highlights the role of foreign direct investment in Romania's economical growth potential, with major impact on employment, on the economic modernization, technology transfer and on the living standards. At the same time the article analyzed and highlights the contains of the current trend of foreign direct investments, structure and dynamics after Romania joined the European Union and their geographical distribution on the main development regions.

Incentives for solar energy in industry

Science.gov (United States)

Bergeron, K. D.

1981-05-01

Several issues are analyzed on the effects that government subsidies and other incentives have on the use of solar energy in industry, as well as on other capital-intensive alternative energy supplies. Discounted cash flow analysis is used to compare tax deductions for fuel expenses with tax credits for capital investments for energy. The result is a simple expression for tax equity. The effects that market penetration of solar energy has on conventional energy prices are analyzed with a free market model. It is shown that net costs of a subsidy program to the society can be significantly reduced by price. Several government loan guarantee concepts are evaluated as incentives that may not require direct outlays of government funds; their relative effectiveness in achieving loan leverage through project financing, and their cost and practicality, are discussed.

Regulatory policy and the location of bio-pharmaceutical foreign direct investment in Europe.

Science.gov (United States)

Koenig, Pamina; Macgarvie, Megan

2011-09-01

This paper examines the relationship between cross-country differences in drug price regulation and the location of biopharmaceutical Foreign Direct Investment (FDI) in Europe. Simple theory predicts that price regulation in one country might affect total investment, but not the location of that investment, if sales are global. Nevertheless, some manufacturers threaten that the introduction of price regulation in a country will motivate them to move their investments to other countries. Are such threats cheap talk, or is there evidence that firms avoid price-controlling countries when making FDI location choices? We use data on 527 investments initiated in 27 European countries between 2002 and 2009 and find that investors are less likely to choose countries with price controls, after controlling for other determinants of investment. We also observe a relative decline in investment in countries that increased the stringency of regulatory regimes during our sample period. The effect is restricted to non-manufacturing investments and is most robust for those related to administrative functions. Copyright © 2011 Elsevier B.V. All rights reserved.

77 FR 8127 - Foreign Tax Credit Splitting Events

Science.gov (United States)

2012-02-14

... Tax Credit Splitting Events AGENCY: Internal Revenue Service (IRS), Treasury. ACTION: Final and... affect taxpayers claiming foreign tax credits. The text of the temporary regulations also serves as the... that if there is a foreign tax credit splitting event with respect to a foreign income tax paid or...

LAWS, REGULATIONS, FORMALITIES AND FACILITIES/INCENTIVES ON INVESTMENT: A CASE OF BANGLADESH

Directory of Open Access Journals (Sweden)

Sharmeen\tAHMED

2015-12-01

Full Text Available Investment is a crucial component phenomenon for economic and industrial development of a country. The main objective of this paper is to highlight the present investment related laws and regulations in Bangladesh. An analysis has been made to depict different aspects and their impacts on formulations, promotions, incentives and facilities support provided by BOI, BEPZA, BSCIC, Ministry of Finance, Bangladesh Bank and National Board of Revenue to both local and foreign investors. The results of the study indicate that variables related to investment in Bangladesh are highly positive for economic growth and industrial development of the country.

FOREIGN DIRECT INVESTMENT AND ECONOMIC PROGRESS:APPLICATION OF A DYNAMIC MODEL

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Cyril A. Ogbokor

2018-01-01

Full Text Available Capital movements,whether in the form of foreign direct investment or foreignportfolio investment are considered to have a positive multiplier effect on theeconomy.The study contributes to the empirical literature by investigatingwhether foreign direct investment affects economic growth using Namibia as atest centre.The study made use ofvector autoregression methodto examine thisrelationship.A quarterly data covering 1990:Q1 to 2014:Q4 was employed.Theresults found cointegratingrelationships among the four variables that wereinvestigated. The estimated long-run equation also suggests a positive relationshipamongst the variables that have been examined in the study. Surprisingly, noevidence of causality was found pertaining tothe variables assessed in the study.Moreover, real exchange rate and net foreign direct investment contributed moretowards innovations in economic growth during the forecast horizon compared tothe openness index. The study concludes by crafting opportunities for furtherinquiries.

Reforestation tax incentives under the American jobs creation act of 2004

Science.gov (United States)

Thomas J. Straka; John L. Greene

2007-01-01

The American jobs creation act of 2004 made significant changes in the reforestation tax incentives available to private forest owners. Owners can now deduct outright reforestation costs up to $10,000 per year for each qualifying timber property and amortize any additional amount over 8 tax years. to assess the financial benefit the new incentives provide to forest...

Impact of Climate Change. Policy Uncertainty in Power Investment

International Nuclear Information System (INIS)

Blyth, W.; Yang, M.

2006-10-01

Climate change policies are being introduced or actively considered in all IEA member countries, changing the investment conditions and technology choices in the energy sector. Many of these policies are at a formative stage, and policy uncertainty is currently high. The objective of this paper is to quantify the impacts of climate change policy on power investment. We use Real Options Analysis approach in the study and model uncertain carbon price and fuel price with stochastic variables. The analysis compares the effects of climate policy uncertainty with fuel price uncertainty, showing the relative importance of these sources of risk for different technologies. This paper considers views on the importance of climate policy risk, how it is managed, and how it might affect investment behaviour. The implications for policymakers are analyzed, allowing the key messages to be transferred into policy design decisions. We found that in many cases, the dominant risks facing base-load generation investment decisions will be market risks associated with electricity and fuel prices. However, under certain conditions and for some technologies, climate policy uncertainty can be an important risk factor, creating an incentive to delay investment and raising investment thresholds. This paper concludes that government climate change policies to promote investment in low-carbon technologies should aim to overcome this incentive to delay by sending long-term investment signals backed up by strengthened international policy action to enhance domestic policy credibility

Tax-Exempt Hospitals' Investments in Community Health and Local Public Health Spending: Patterns and Relationships.

Science.gov (United States)

Singh, Simone R; Young, Gary J

2017-12-01

To investigate whether tax-exempt hospitals' investments in community health are associated with patterns of governmental public health spending focusing specifically on the relationship between hospitals' community benefit expenditures and the spending patterns of local health departments (LHDs). We combined data on tax-exempt hospitals' community benefit spending with data on spending by the corresponding LHD that served the county in which a hospital was located. Data were available for 2 years, 2009 and 2013. Generalized linear regressions were estimated with indicators of hospital community benefit spending as the dependent variable and LHD spending as the key independent variable. Hospital community benefit spending was unrelated to how much local public health agencies spent, per capita, on public health in their communities. Patterns of local public health spending do not appear to impact the investments of tax-exempt hospitals in community health activities. Opportunities may, however, exist for a more active engagement between the public and private sector to ensure that the expenditures of all stakeholders involved in community health improvement efforts complement one another. © Health Research and Educational Trust.

Inclusive Development and Chinese Foreign Direct Investment in ...

International Development Research Centre (IDRC) Digital Library (Canada)

... and maximizing the benefits of foreign direct investment, especially in terms of ... of Economics and Business Management at the National University of Laos, and the Cambodia Economics Association. ... Agent(e) responsable du CRDI.

The Impact of Country Risk on the Dynamics of Foreign Direct Investments in Romania

Directory of Open Access Journals (Sweden)

Sorcaru Sergiu-Lucian

2016-12-01

Full Text Available The main objective of the scientific approach consists of country risk analysis to substantiate the Foreign Direct Investments (FDI in Romania. The thesis proposes a new approach and analysis regarding the risks to which foreign investors are subjected to, both in terms of concepts and theoretical understanding of the phenomena. As a method of analysis we have used qualitative research as it focuses on cultural studies of the place chosen for investment; on the sociological survey and it covers an extensive interdisciplinary field. The motivation of approaching so an important topic on country risk and the importance it has in the location of foreign investments in general, and especially the direct foreign investments, is justified on the one hand by the scarcity of studies in the field, and, furthermore, the impact of economic policies that it can have such research. The results or our approach are correlated with statistical data analysis, which allowed the creating a general framework on the country risk influence on FDI. The added value lies in the approach particularly complex due to the multitude of variables involved, and the risk management is an absolute necessity in today's economy.

Incentive aspects of point implementation of greenhouse gas reduction

International Nuclear Information System (INIS)

Michaelowa, A.

1996-01-01

The costs of a national climate policy instruments can be reduced if a reduction of greenhouse gas emission achieved abroad can be credited to a national target. Reductions carried through by agents of one country in another country are called Joint Implementation and have been a major topic in the negotiations on the UN Framework Convention on Climate Change. The first Conference of the parties in Berlin decided that the concept should be tested in a pilot phase without crediting. To induce private investments in Joint Implementation projects, primary instruments such as emission taxes, subsidies, tradeable emission rights or regulation are a necessary condition. Tax concessions, subsidies, additional emission rights or relaxation of regulation act as incentives. These must be proportional to the emission reduction achieved through the projects. Tax concessions and subsidies are preferable to other instruments for efficiency reasons. Examples are given for calculating tax concessions on a range of projects, including the installation of new boilers at a foreign power plant, the building of a new lignite power plant abroad, and the replacement of a coal-fired power plant with a hydroelectric power plant. 18 refs., 7 figs., 1 tab

A Rule of Reason for Inward FDI: Integrating Canadian Foreign Investment Review and Competition Policy

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Grant Bishop

2016-10-01

Full Text Available The Investment Canada Act (ICA needs an overhaul. This reform must include a paradigm shift in thinking to a much less restrictive view about the benefits of foreign direct investment in Canada. Currently, the ICA operates under the presumption that foreign firms behave detrimentally to the Canadian economy: foreign acquirers are required to show “net benefit” to Canada and may need to make onerous commitments for maintaining output or employment. This attitude, a holdover from the ICA’s predecessor, the Foreign Investment Review Agency, has created an atmosphere which fosters protectionism and relies on economically incoherent factors to assess the merit of proposed transactions. It is time to shed that archaic attitude and adopt a more reasoned perspective. Rather than requiring each proposed transaction to provide proof for the specific benefit to Canada, the ICA should assume that foreign acquisitions benefit Canada unless there is proof to the contrary. A more welcoming, balanced and rational perspective would be that foreign acquisitions actually improve the productivity of Canadian companies and contribute to the wellbeing of Canada’s economy. The ICA is flawed in other ways, too. Some reviews of proposed transactions have become unnecessarily fraught with politics. Think of the recent politically enmeshed fretting over the bid that the state-owned Chinese Offshore National Company made for Nexen Energy, or Malaysia’s state-owned Petronas’ bid for Progress Energy Resources Corp. Indeed, there has been a very real fear of traditionally Canadian-owned institutions losing their Canadian essence to foreign ownership. Then, too, there is the federal government’s built-in ability to impose onerous conditions, or undertakings, on foreign acquirers. All this is clearly a deterrent to potentially beneficial foreign investment in Canada. Canada needs a new regime without nationalism, protectionism and politics. Ideally, this new

Foreign Direct Investments Expansion – Essential Globalization Factor

Directory of Open Access Journals (Sweden)

Cătălin Emilian HUIDUMAC PETRESCU

2011-01-01

Full Text Available We live in a time when the world economy is constantly changing. Foreign direct investments is one of the most dynamic part of the world economy and in a continuous globalization, those international financial flows determining the traders to know their defining elements and to adopt a specific management in the international affairs field. We are viewers of an unprecedented expansion of foreign direct investments, essential factor of the globalization development process. The paper analyzes the evolution of FDI so far, along with a brief illustration as the main trends of international financial flows for 2010 and 2011. In the context of economic globalization, it is absolutely necessary to clear out a study on the various economic activities, especially on the differences between countries. The analysis of these differences is particularly important as it helps improve and optimize the strategies adopted by foreign transnational companies. In the past 15 years, one observes that most companies in emerging countries, characterized by a great expansion, have adopted in the first phase of their existence, corporate strategies that gave them the opportunity to become global companies. According to surveys, after reaching the first goal, becoming a multinational or a transnational company, they have developed new business models beyond the classical principles and strategies. It is anticipated that in the coming decades, the strategies of emerging companies will be influenced by functional specialization, which, according to experts, influence the process of globalization. The analysis of strategies adopted by companies in emerging countries is absolutely necessary because the results cannot be overlooked. For example, until 2004, only five Asian companies were part of the top 100 transnational companies. The study was carried out by UNCTAD and the identification criterion was the size of foreign assets. In 2006, 14% of world total FDI came from

Evaluating Foreign Direct Investment and Africa's Development ...

African Journals Online (AJOL)

The question of Africa's development has continued to occupy the front burner from the social and economic discussions by scholars of various divides. But Africa's development through foreign direct investment has become a recent challenge to the African continent. African social critics and commentators as well as ...

Are Debt Repayment Incentives Undermined by Foreign Aid?

DEFF Research Database (Denmark)

Bjørnskov, Christian; Schröder, Philipp J.H.

This paper investigates the effects of inflows of foreign aid on the debt repayment behaviour of developing countries. The paper first delineates the overall incentives to committing to timely repayment in a war of attrition-type model. A set of panel estimates including 93 developing countries...... shows that foreign aid is strongly negatively associated with repayment incentives. The findings pertain to both total debt service and service on publically guaranteed debt. Only countries that tend to vote predominantly with the US in the UN General Assembly are not significantly discouraged from...... servicing their debt by inflows of foreign aid....

CONTRIBUTION OF FOREIGN DIRECT INVESTMENT FOR THE REGION DEVELOPMENT

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KATARÍNA ČULKOVÁ

2013-02-01

Full Text Available Foreign direct investments contribute to the important solving of the economical growth and regionaldevelopment and it presents part of the state’s effort to increase living level of the state. Slovakia government ismotivated to support any foreign investment and it competes for such investments with other transforming countries.Goal of the contribution is to provide idea about main factors that influence inflow of the foreign investments to theindividual regions of Slovakia and to evaluate their contribution through characteristics and main determinants of theforeign investments. Only through careful choice can Slovakia obtain successfully investors that would come to thecountry with production, research and development since in modern economy we cannot be competitive without suchactivities, neither in regional, nor in the international level.

Patterns of Foreign Direct Investment in Transylvania

Directory of Open Access Journals (Sweden)

Aniela Raluca DANCIU

2016-03-01

Full Text Available Foreign direct investment (FDI has gained significant importance over the past decade as a tool for accelerating growth and development of transition economies. It is widely believed that the advantages that FDI brings to the standard of living and prospects for economic growth of the host nation largely outweigh its disadvantages. Despite the growing interest in the subject, to our knowledge, there is still no satisfactory empirical work which can explain the determinants of the spatial distribution of FDI flows into the separate regions of Romania, one of the largest new EU-member states. Thus, this research attempts to fill this gap by using a primary data from a questionnaire that covers the entire transition period. The main goal of this study is to identify the main determinants of the direct foreign investments in Central, West and North West Romanian regions. Basically, the study is constructed so, that it will provide a list of the main strengths and weaknesses of Center, West and North West regions, that would influence a foreign investor to choose the proper location for a future investment when developing his strategy.

GLOBALIZATION AND FOREIGN DIRECT INVESTMENTS

Directory of Open Access Journals (Sweden)

Elena Chirilă – Donciu

2013-07-01

Full Text Available Mobilizing financial resources to cover investment needs is a concern of all countries, developed or developing ones, of consolidated market economies or emerging ones. A distinctive characteristic of Global Economy over the last few decades has been the rising rate and impressive increase in Foreign Direct Investment (FDI. The purpose of this research is to analyse global FDI inflows in Europe and in Romania. The results of the research support the idea that the balance of economic power is changing in the world economy and the countries that own a stable and solid industrial base are at an advantage. The new trends determined by the economic crisis in the field of FDI refer to the growing percentage of developing and emerging countries in the global flows of FDI.

Foreign direct investment and urban concentrations: unbundling spatial lags

NARCIS (Netherlands)

Poelhekke, S.; van der Ploeg, F.

2009-01-01

Foreign direct investment (FDI) is seen as a way to import technology and catch up with economic leaders. It is therefore important to understand why some countries attract more investments by multinationals than others. We expand the set of common determinants of FDI with urban agglomerations and

Why hasn’t Macedonia succeeded for a long time in absorbing Foreign Direct Investment

Directory of Open Access Journals (Sweden)

Dr.Sc. Nasir Selimi

2015-06-01

Full Text Available Recently almost all countries of the world without exception developed countries or the developing countries are attracting foreign direct investments. The reason is that there is no dilemma that benefits of foreign direct investments in the host countries as well as domestic countries are greater than the damage that can have. Western Balkan countries also follow this trend for attracting foreign direct investment. Some of them have achieved notable successes, while the others have achieved less success.  Macedonia is a country that during the last two decades ranks among the countries with smaller foreign direct investments. In the paper which I have chosen to analyze, in the start I gave a general overview of the meaning, role and importance of foreign direct investments for economic development of a country.  Later I have analyzed the trend of foreign direct investments in the region, and especially in Macedonia. At the end sought and given reasons of locking foreign direct investment in Macedonia and recommendations to overcome such a situation.

Regulatory Incentives and Disincentives for Utility Investments in Grid Modernization

Energy Technology Data Exchange (ETDEWEB)

Kihm, Steve [Seventhware, Madison, WI (United States); Beecher, Janice [Michigan State Univ., East Lansing, MI (United States). Inst. of Public Utilities; Lehr, Ronald L.

2017-05-31

Electric power is America's most capital-intensive industry, with more than $100 billion invested each year in energy infrastructure. Investment needs are likely to grow as electric utilities make power systems more reliable and resilient, deploy advanced digital technologies, and facilitate new services to meet some consumers' expectations for greater choice and control. But do current regulatory approaches provide the appropriate incentives for grid modernization investments? This report presents three perspectives: -Financial analyst Steve Kihm begins by explaining that any major investor-owned electric utility that wants to raise capital today can do so at a reasonable cost. The question is whether utility managers want to raise capital for grid modernization. Specifically, they look for investments that create the most value for their existing shareholders. In cases where grid modernization investments are not the best choice in terms of shareholder value, Kihm describes shareholder incentive mechanisms that regulators could consider to encourage such investments when they are in the public interest. -From an institutional perspective, Dr. Janice Beecher finds that the traditional rate-base/rate of return regulatory model provides powerful incentives for utilities to pursue investments, cost control, efficiency and even innovation, and it is well suited to the policy objectives of grid modernization. Prudence of grid modernization investments (fair returns) depends on careful evaluation of the specific asset, and any special incentives (bonus returns) should be used only if they promote economic efficiency consistent with the core goals of economic regulation. According to Beecher, realizing the promises of grid modernization depends on effective implementation of the traditional regulatory model and ratemaking tools to serve the public interest. -Conversely, former commissioner and clean energy consultant Ron Lehr says that rapid electric industry

77 FR 8184 - Foreign Tax Credit Splitting Events

Science.gov (United States)

2012-02-14

... Foreign Tax Credit Splitting Events AGENCY: Internal Revenue Service (IRS), Treasury. ACTION: Notice of... these proposed regulations. The regulations affect taxpayers claiming foreign tax credits. Special... of the Federal Register.] Sec. 1.909-6 Pre-2011 foreign tax credit splitting events. [The text of...

Outward foreign direct investments and home country's economic growth

Science.gov (United States)

Ciesielska, Dorota; Kołtuniak, Marcin

2017-09-01

The study examines the time stability of the causality direction and cross-correlations between the home country's economic growth and pace of growth of its outward foreign direct investment (OFDI) stocks within the complex system of the Polish national economy. The research has been performed in order to verify, using both the time and frequency domains time series analyses, if economic agents' long term decisions on outward foreign direct investments, leading to cross-border value chains and production fragmentation processes, are of adaptive or predictive character. Consequently, the aim was to check if the home country's economic growth leads the internationalization processes of domestic enterprises, which stays in line with Dunning's Investment Development Path (IDP) paradigm, or if these complex processes, thanks to entrepreneurs' ability to formulate relevant rational expectations, precede the home country's economic growth, which would be supported with the introduction of the policy on reinforcing the internationalization processes of domestic enterprises. The presence of the unidirectional economic growth-led internationalization, consistent with the IDP concept's base assumptions, has been ascertained by the results of the short term Granger causality tests. Nevertheless, the results of the wavelet analyses, supported with the results of the econometric block exogeneity long term causality Wald tests, have revealed that in the long term the OFDI stocks' growth permanently precedes the home country's economic growth, which stays in the unequivocal contrast with the IDP paradigm's premises, as well as with the indicated above short term Granger causality tests' outcomes and indicates that economic agents' choices are not strictly of adaptive but also of predictive character, which influences the current state of knowledge on economic complex systems' characteristics. Such a result is of a great importance in the light of the existence of the significant

Direct Investments in Croatia in the Form of Personal Companies – Tax Related Issues

OpenAIRE

Luketina, Marina

2017-01-01

The bilateral economic relations between Austria and Croatia are of prime importance to both countries: more than one quarter of foreign investments realised in Croatia stem from Austrian sources. Indeed, Austria is the largest investor in Croatia. Although the Croatian legal framework provides for several investment possibilities, Austrian residents prefer to invest in Croatian capital companies. However, especially from the perspective of Austrian residents, substantial tax benefits may res...

Considering foreign direct investment in Denmark

DEFF Research Database (Denmark)

Gjerding, Allan Næs

2005-01-01

The present paper examines the aspect of relational assets and relates it to the strategic decision on undertaking foreign direct investment (FDI). The point of departure is the increasing importance of FDI globally as well as in the Danish economy, and the observation that even though Denmark...

China’s Foreign Aid and Government-Sponsored Investment Activities: Scale, Content, Destinations, and Implications

Science.gov (United States)

2013-01-01

this document Browse Reports & Bookstore Make a charitable contribution Limited Electronic Distribution Rights This document and trademark(s...sponsors. Support RAND—make a tax-deductible charitable contribution at www.rand.org/giving/contribute.html R® is a registered trademark © Copyright 2013...cooperation organizations such as the xvi China’s Foreign Aid and Government-Sponsored Investment Activities Shanghai Cooperation Organisation have

The Impact of Tax Incentives on Research and Development

Directory of Open Access Journals (Sweden)

Petr Svoboda

2017-01-01

Full Text Available The goal of this article is to analyze the impact of tax incentives on research and development and compare its effectiveness to direct government support of research and development. The analysis is based on regression analysis, which compares effect of tax incentives for research and development and direct government support (as percentage of GDP in 28 countries of OECD in 2013 on innovative effectiveness of these countries measured by number of registered triadic patent families per billion GDP in the same year. Results suggest that tax incentives are more effective form of research and development support than direct government funding. Research also revealed interesting case of Switzerland’s research and development performance backed by almost none government support, which should be subject to future study.

FOREIGN DIRECT INVESTMENTS – AN ESSENTIAL FACTOR FOR ECONOMIC GROWTH IN TRANSITION ECONOMIES

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Carmen BOGHEAN

2015-06-01

Full Text Available The purpose of this analysis is to analyse the connection between foreign direct investments and economic growth in transition economies during a period of increased integration of financial systems in the global financial system. The research focuses on the relationship between foreign direct investments and economic growth during 1970-2013, by means of methods such as the graphic, the regression and the correlation ones. The research findings show that there is a direct and strong connection between the inward financial flows of foreign direct investments and the GDP during the period under analysis in transition economies. In transition economies, a high inward flow of foreign direct investments leads to an increase of the Gross Domestic Product per capita, while a positive development of the standard of living will attract new inward FDI flows, since transition economies are seen as attractive recipients/hosts for foreign direct investments.

The rise and fall of foreign private investment in the jatropha biofuel value chain in Ghana

DEFF Research Database (Denmark)

Nygaard, Ivan; Bolwig, Simon

2018-01-01

The article draws on the multi-level perspective (MLP) and global value chain (GVC) frameworks to analyse the drivers and trajectories of foreign private investment in biofuel production in Ghana. It is based on a narrative of the evolution of a niche for jatropha production in Ghana in the period...... a new agriculture-based value chain for global biofuel markets, i.e. high volume requirements, high capital needs, and market risks contributed to the collapse of the jatropha sector in Ghana. A low level of learning and knowledge sharing between jatropha actors in Ghana, alongside weak public R......&D support, reduced access to technical and managerial information. Confirming previous GVC research on biofuels, policy and NGOs had a stronger influence on the jatropha value chain than in typical agricultural chains. Moreover, global drivers and the strategies and capabilities of foreign investors can...

FDI and Telecommunications Privatization: Case Studies of Latin America, United Kingdom, and Hungary

Directory of Open Access Journals (Sweden)

Mi-Kyung Yun

1998-12-01

Full Text Available This thesis observed the recent trend of privatization and the effect of foreign investment, and the example of the overseas experience of sale of the state-own enterprises. To study the enlightenment of the strategy which attracted foreign investment by way of privatization or the issue the Korean government needs to be paid attention to when foreigners invest in public sections. The most important enlightenment getting from the foreign instances is that although it takes a long time before privatization, the foreign investment could be effectively attracted and the price could be risen maximum only when the stable and transparent restriction system is established. In order to get a price as high as possible, the sell of stocks should be done in many times. Promote the competition of demand between investment institutions and private investors. Control and make use of the financial institutions properly by way of various attractive economic policies. And so on.

European Accounting Harmonisation: Consequences of IFRS Adoption on Trade in Goods and Foreign Direct Investments

OpenAIRE

Laura Márquez-Ramos

2011-01-01

This paper focuses on the importance of accounting harmonisation in foreign activities at country level. The adoption of International Financial Reporting Standards (IFRS) is considered to reduce information costs among countries and, therefore, encourage international trade in goods and investment. The results provide evidence that benefits exist in terms of trade in goods and foreign direct investments (FDI) when IFRS are adopted.

Equity Incentives: Aligning The Interests Of Employees And Owners ...

African Journals Online (AJOL)

This paper reviews how to align the interests of employees and of owners of businesses and directs attention to policy issues that are critical to the attainment of this noble objective. It demonstrates that Tax Incentives and Reforms are necessary and offers recommendations on how to promote equity incentives in Nigeria.

FDI Promotion Policies in the United Kingdom, Singapore and Malaysia: Lessons for Korea

Directory of Open Access Journals (Sweden)

Seong-Bong Lee

1998-12-01

Full Text Available The Law to Promote Foreign Investment, which has been effected in Nov. 1998, has amended the support system of reducing taxation greatly. Though the extent that the investment support system improved compared to the past is important, what’s more important is the level of Korean investment condition comparing to other countries. Based on the analysis of the instances of Britain, Singapore and Malaysia, this study inspected and took a close look at Korean policy of attracting foreign investment afresh and brought up the direction of improvement. This study got enlightenment on policy of attracting foreign investment in the view of stratagem, the improvement of investment environment, strengthening the cooperation and adjustment of capital attracting institutions, flexible award system and strategic application in investment free areas.