IDEAS home Printed from
   My bibliography  Save this article

Foreign Direct Investment Incentives


  • Constantin Sanda
  • Lupsa Dana

    (Transilvania University of Brasov Faculty of Economic Sciences Brasov, Romania)


The aim of this paper is to examine whether international investment incentives can be justified on the host country effects of foreign direct investments. In particular, we discuss whether the externalities from the operations of foreign multinational corporations are strong and systematic enough to justify subsidizing foreign investment with various fiscal and financial incentives. We also discuss some alternative policy measures available for governments to benefit from inward foreign investment Based on the current knowledge of spillovers, we try to see whether investment incentives can be justified or not, and discusses the design of incentive policies.

Suggested Citation

  • Constantin Sanda & Lupsa Dana, 2007. "Foreign Direct Investment Incentives," Revista Tinerilor Economisti (The Young Economists Journal), University of Craiova, Faculty of Economics and Business Administration, vol. 1(7), pages 149-154, April.
  • Handle: RePEc:aio:rteyej:v:1:y:2007:i:7:p:149-154

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. repec:dau:papers:123456789/657 is not listed on IDEAS
    2. D. Cazal & A. Dietrich, 2005. "RSE : parties prenantes et partis pris," Post-Print hal-00266782, HAL.
    Full references (including those not matched with items on IDEAS)

    More about this item


    foreign direct investment; incentives; multinational corporations;

    JEL classification:

    • F17 - International Economics - - Trade - - - Trade Forecasting and Simulation
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aio:rteyej:v:1:y:2007:i:7:p:149-154. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ionascu Costel). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.