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A Note on Investment Incentives in the WTO and the Transition Economies

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  • Jai Mah
  • Donatas Tamulaitis

Abstract

Most of the transition economies are already members of or in the process of accession to the WTO. Therefore their investment incentive regimes need to be compatible with the Agreement on Subsidies and Countervailing Measures in the WTO. This study compares the fiscal investment incentives in the transition economies provided to foreign investors and shows which are expected to be phased out soon owing to their inconsistency with the current WTO regulations. It would be to their own benefit for these economies to make their investment policies consistent with the relevant WTO provisions, to take steps to eliminate subsidies prohibited in the WTO system and to try not to waste their resources, considering that the incentives may be subjected to countervailing measures by WTO members.

Suggested Citation

  • Jai Mah & Donatas Tamulaitis, 2000. "A Note on Investment Incentives in the WTO and the Transition Economies," Post-Communist Economies, Taylor & Francis Journals, vol. 12(1), pages 119-130.
  • Handle: RePEc:taf:pocoec:v:12:y:2000:i:1:p:119-130
    DOI: 10.1080/14631370050002701
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    References listed on IDEAS

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    1. John Henley & Colin Kirkpatrick & Georgina Wilde, 1999. "Foreign Direct Investment in China: Recent Trends and Current Policy Issues," The World Economy, Wiley Blackwell, vol. 22(2), pages 223-243, March.
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    Cited by:

    1. Blomström, Magnus & Kokko, Ari, 2003. "The Economics of Foreign Direct Investment Incentives," EIJS Working Paper Series 168, Stockholm School of Economics, The European Institute of Japanese Studies.
    2. Morris Bornstein, 2000. "Post-Privatization Enterprise Restructuring," William Davidson Institute Working Papers Series 327, William Davidson Institute at the University of Michigan.
    3. Romualdas Ginevičius & Agnė Šimelytė, 2011. "Government incentives directed towards foreign direct investment: a case of central and eastern europe," Journal of Business Economics and Management, Taylor & Francis Journals, vol. 12(3), pages 435-450, May.
    4. Morris Bornstein, 2001. "Post-privatisation Enterprise Restructuring," Post-Communist Economies, Taylor & Francis Journals, vol. 13(2), pages 189-203.

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