16 Favourable legal, macroeconomic and political framework conditions alone cannot directly influence FDI inflows; they must be supplemented (Figure 16.1) by:
FDI-related Policy Instruments
|• ||special incentives for FDI in designated industries and regions;|
|• ||creation of special development zones to promote particular regions or technologies;|
|• ||establishment of an investor information system;|
|• ||promotion and image-building campaigns;|
|• ||advisory services intended for the management of leading large (the world's top 500) and medium-sized TNCs (hidden champions);|
|• ||financial engineering; and,|
|• ||creation of an FDI agency, which serves the regions.
These FDI measures should be planned at federal level in consultation with regional authorities.
Figure 16.1 FDI-related instruments
Questia, a part of Gale, Cengage Learning. www.questia.com
Book title: Foreign Direct Investment in Russia: A Strategy for Industrial Recovery.
Contributors: Paul Fischer - Author.
Publisher: St. Martin's Press.
Place of publication: New York.
Publication year: 2000.
Page number: 481.
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