Investment promotion agency
An investment promotion agency (IPA) is most often a government agency (or occasionally a non-profit organization functioning similar to a chamber of commerce or business consulting corporation) whose mission is to attract investment to a country, state, region or city. Generally, IPAs have four core functions: image building of FDI hosting country, investment generation, project management and aftercare services. While IPAs play an important role in attracting investment to developed countries[1] some IPAs have additional advocacy function.
The IPA does this by introducing investors with local suppliers (raw materials or other inputs); providing useful statistical data and business information such as macroeconomic indicators (GNP, GDP, HDI, inflation etc.), labor productivity, average wages, attractive sectors of domestic economy; practical support like securing permits or completing other administrative obligations; and by managing any investment incentives that the city, state or country may offer to foreign investors (companies or individuals).[2]
See also
Further reading
- Jensen, N., & Malesky, E. (2018). Incentives to Pander: How Politicians Use Corporate Welfare for Political Gain. Cambridge: Cambridge University Press.
References
- ^ Campisi, J. and Sottilotta, C.E. (2016) Unfriendly or Unwanted? Reflections on FDI Attraction Policies in Italy, Rivista Italiana di Politiche Pubbliche, Vol.11 No.2, pp. 223-250 https://www.rivisteweb.it/doi/10.1483/83927
- ^ C.Bellak, M.Leibrecht & R.Stehrer (2008) POLICIES TO ATTRACT FOREIGN DIRECT INVESTMENT: AN INDUSTRY-LEVEL ANALYSIS, OECD VII Global Forum on International Investment, http://www.oecd.org/investment/globalforum/40301081.pdf