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Introducing Investment Promotion: A Marketing Approach to Attracting Foreign Direct Investment

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  • Bamituni E. Abamu

Abstract

This paper introduces the concept of investment promotion, a form of marketing used by national governments to attract foreign investments into their country. While it is not a new concept, it barely makes it to academic literature. The paper brings investment promotion to the forefront for the purpose of creating a research interest in this topic and also contributes to the development of literature. It attempts to integrate investment promotion activities into already established marketing models and frameworks and set a marketing research agenda on the topic. Since attracting foreign investment is a policy and country situation issue, this paper will support and serve as a reference for governments as they design foreign investment policies and improve the attractiveness of their country as an investment destination using marketing tools. The paper first discusses the influence of marketing on investment promotion and how investors should be viewed as consumers who have needs to be satisfied. Various frameworks and concepts like the consumer decision-making process, market segmentation and marketing communications mix are discussed to show how they can be applied in investment promotion. The application of marketing concepts and theories has been beneficial in the business world, and this paper argues that there are potential benefits for countries who decide to apply the same concept and theories to attract investors.

Suggested Citation

  • Bamituni E. Abamu, 2020. "Introducing Investment Promotion: A Marketing Approach to Attracting Foreign Direct Investment," International Journal of Marketing Studies, Canadian Center of Science and Education, vol. 11(4), pages 1-91, March.
    • Handle: RePEc:ibn:ijmsjn:v:11:y:2020:i:4:p:91
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    References listed on IDEAS

    as
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    4. Torfinn Harding & Beata S. Javorcik, 2011. "Roll Out the Red Carpet and They Will Come: Investment Promotion and FDI Inflows," Economic Journal, Royal Economic Society, vol. 121(557), pages 1445-1476, December.
    5. Sara Dolnicar & Bettina Grün & Friedrich Leisch, 2018. "Market Segmentation Analysis," Management for Professionals, in: Market Segmentation Analysis, chapter 0, pages 11-22, Springer.
    6. Anwar, Amar Iqbal & Hasse, Rolf & Rabbi, Fazli, 2008. "Location Determinants of Indian Outward Foreign Direct Investment: How Multinationals Choose their Investment Destinations?," MPRA Paper 47397, University Library of Munich, Germany.
    7. Steven Brand & Stephen Hill & Max Munday, 2000. "Assessing the Impacts of Foreign Manufacturing on Regional Economies: The Cases of Wales, Scotland and the West Midlands," Regional Studies, Taylor & Francis Journals, vol. 34(4), pages 343-355.
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    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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