English, Article edition: POLITICAL ECONOMICS OF INVESTMENT INCENTIVES Miroslav PLOJHAR; 130 67 Prague 3 (e-mail: Plojhar@vse.cz); Martin SRHOLEC

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Bookmark: http://trove.nla.gov.au/version/197749
Physical Description
  • article
Language
  • English

Edition details

Title
  • POLITICAL ECONOMICS OF INVESTMENT INCENTIVES
Author
  • Miroslav PLOJHAR
  • 130 67 Prague 3 (e-mail: Plojhar@vse.cz)
  • Martin SRHOLEC
Physical Description
  • article
Notes
  • state aid, partial interest groups, multilateral agreement on investment, investment incentives, foreign direct investment
  • RePEc:prg:jnlpol:v:2004:y:2004:i:4:id:469:p:451-466
  • The paper focuses on selective investment incentives, which are aimed primarily to attract foreign direct investment, in the context of the new EU Member States, namely the Czech Republic, Hungary, Poland and Slovakia. We discuss the issue within three closely related dimensions. We point to a potential conflict of interests between host country governments and multinational companies in promoting technology spillovers from foreign direct investment in the host economies. We examine the prisoner dilemma of the host governments in mutual competition for mobile direct investment and a room to achieve multilateral or strengthening regional agreement on investment to reduce a possible wealth reducing content of such policies. Finally, we discuss national context of the investment incentives with regards to the rent-seeking behaviour of various interest groups and contradictory role of the investment promotion agency in the process of decision-making about investment promotion policies. We conclude with brief implications for development policy.
  • foreign direct investment, investment incentives, state aid, multilateral agreement on investment, partial interest groups
Language
  • English
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