Attracting foreign direct investment: the public policy scope for South East European countries

Bellak, Christian and Leibrecht, Markus and Liebensteiner, Mario (2010) Attracting foreign direct investment: the public policy scope for South East European countries. Eastern Journal of European Studies, 1 (2). pp. 37-53. ISSN 2068-6633

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Based on earlier empirical literature for Central and Eastern European Countries this paper attempts to analyze the likely impact of changes in corporate income taxes, in the endowment with production-related material infrastructure and in the institutional environment on Foreign Direct Investment (FDI) - and thus on one channel of regional development in South Eastern European Countries (SEECs). Specifically, we explore the scope for public policy to attract FDI separated by these three policy areas and across the SEECs. Our findings suggest that the potential for SEECs to attract FDI upon changes in these policy areas varies not only substantially between the three policy areas but also within the group of SEECs. Yet, as a general picture, most SEECs have substantial scope to attract FDI by improving their institutional environment as well as their infrastructure endowment. The tax instrument, in contrast, is largely exhausted as a means to attract FDI. Based on these findings some medium- and long-term policy issues are outlined.

Item Type: Article
Keywords: foreign direct investment, taxes, infrastructure, institutions, South Eastern European countries
Classification Codes: JEL F23, H25, H54, P33
Divisions: Departments > Volkswirtschaft > Volkswirtschaftspolitik u Industrieökon.
Forschungsinstitute > Internationale Besteuerung
Version of the Document: Published
Depositing User: Gertraud Novotny
Date Deposited: 07 Apr 2017 09:02
Last Modified: 22 Aug 2018 02:23
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