 Multinational Investment Attraction: Principal-Agent ConsiderationsInternational Journal of the Economics of Business, 1999, vol. 6, issue 1, 65-79 Abstract: Government agencies are becoming increasingly involved in the process of providing investment supports to attract foreign direct investment (FDI).This paper focuses on the problem of how best to structure the investment supports. Five different types of investment supports are theoretically and empirically analysed. In each case the effect of the principal-agent relationships between the MNE investor and the agency charged with attracting FDI are assessed in the strategic context. Theoretical analysis suggests that in some cases, governments may prefer support schemes that appear to be more expensive, but have better incentive or risk-sharing implications. Empirical analysis suggests that MNE firm characteristics are related to the type of investment support package obtained. Keywords: Government Investment Supports Mne; Investment Location; Principal Agent Theory (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:taf:ijecbs:v:6:y:1999:i:1:p:65-79 Ordering information: This journal article can be ordered from Access Statistics for this article International Journal of the Economics of Business is currently edited by Eleanor Morgan More articles in International Journal of the Economics of Business from Taylor & Francis Journals |
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