Institutional Models of Foreign Direct Investment Attracting. Comparative Aspects

Janina Witkowska

doi:10.18778/1508-2008.9.17

Authors

Janina Witkowska

DOI:

https://doi.org/10.18778/1508-2008.9.17

Abstract

The chapter examines the effectiveness of different institutional models of foreign direct investment (FDI) attracting and the relationship between institutional framework and the scale of FDI flows into countries being in process of catching up with developed economies. The experience of such countries as Ireland, Czech Republic, Hungary and Poland is used for studying this problem. The results indicate that the most effective institutional framework supporting the inflow of FDI to a host country is to set up a quasi-governmental agency promoting FDI. This agency should be of one–stop-shop character and endowed with appropriate authorisation. The adopted institutional framework must be harmonised with the basic assumptions of the policy towards foreign investors. The scale of FDI inflows into host countries depends only to limited degree on institutional solutions. The character of policy towards foreign investors and traditional location advantages seem to play more important role.

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