Foreign direct investment in Southeast Asia: - Regional Office China

unido.org.cn

Foreign direct investment in Southeast Asia: - Regional Office China

Theme 3FDI, Boundaries, Hierarchies and MarketsFirst presentation summaryPresenting an analytical framework within which FDI policy instruments canbe designed, Frank Bartels provided the various policy objectives,instruments and implementation processes available to IPAs. Against thebackground of sovereign authorities being able “to shape -- or even distort --the economic environment of the host country, in order to attract and retainhigher levels of value-adding FDI”, the dimensions of FDI policy objectiveswere seen in terms of the growth of factors and variables.These factors and variables may be grouped in terms of: i) investment orbusiness climate benchmarking 1 ; ii) Competitive Industrial Performancecriteria [UNIDO (2002)]; iii) fiscal items (e.g. direct and indirect taxation);and iv) non-fiscal items (e.g. grants). The major challenge confrontingpolicy-makers is that, in a world increasingly influenced by the World TradeOrganisation (WTO) and a rules-based approach to policy matters, plusdiminishing barriers to factor mobility, the range of FDI promotion hasexpanded to include all the factors and variables of: i) FDI determinants andmotivations; ii) structural adjustment 2 ; iii) business operationalenvironment 3 ; iv) enterprise performance 4 ; v) ability to do business ‘withouta hassle’ 5 ; vi) macro-economic competitiveness 6 ; vii) economic freedom 7 ;1 For example, see A. T. Kearney, 2004, FDI Confidence Index, Global Business Policy Council, Volume7; A.T. Kearney, 2004, A.T. Kearney’s 2004 Offshore Location Attractiveness Index: Making OffshoreDecisions, Chicago; Fraser Institute, Economic Freedom of the World: 2004 Annual Report, Vancouver;Heritage Foundation, 2005, 2005 Index of Economic Freedom; IMD, 2003, The World CompetitivenessYearbook 2003, Geneva; Transparency International, Framework Document: Background Paper to theCorruption Perceptions Index, Passau; UNDP, 2003, Human Development Report: MillenniumDevelopment Goals: A compact among nations to end human poverty, New-York; UNIDO, 2002,Industrial Development Report 2002/2003: Competing through Innovation and Learning, Vienna: UNIDO;WEF, 2000, Global Competitiveness Report, Geneva; World Bank, 2005, Doing Business in 2005,Washington D.C.: IBRD/World Bank/OUP.2 Resource assets, infrastructure, operating costs, economic performance, governance, taxation, regulatoryconditions and framework.3 Public services and policy, legal system, corruption, regulatory efficiency, mergers monopolies andcompetition policy, financial services.4 Regulatory capture, influence and lobbying, labour market, rule of law.5 Starting a business, hiring and firing workers, access to credit, enforcing contracts, closing a business.6 Macro-economic conditions, public institutions, technology.21

More magazines by this user
Similar magazines