Outward FDI policies: Promotion and facilitation - regulation and screening
The United Nations Conference on Trade and Development (UNCTAD) presented a new working paper on investment policy issues.
The focus is on successful practices in the field of attracting and legal regulation of foreign direct investment (FDI).
Experts identify four main mechanisms for promoting investment projects:
- fiscal and financial support,
- investment guarantees,
- consulting,
- direct investment.
The organization estimates that more than 79% of developing countries have introduced various instruments to stimulate FDI.
FDI is an opportunity to increase global competitiveness and innovative development of domestic companies, expand political connections and form a favorable international image. However, FDI carries a number of financial and technological security risks. The most common regulatory measures include licensing procedures, registration, quotas, and administrative restrictions.
