The Impact of State Investor Support Programs on the Countries’ Investment Attractiveness

Yevhenii Yaskov, Nataliia Krasnostanova, Nadiia Ivanchenko, Oleksandr Podskrebko and Oleksii Mukhin

Economic Studies journal, 2025, issue 7, 61-74

Abstract: The study analyses the impact of state investor support programs on the countries’ investment attractiveness. The aim of the work is to determine the effectiveness of the programs, analyse their impact on foreign direct investment (FDI), and establish success factors in developed economies. The research employed a mixed approach combining quantitative analysis of economic indicators (methods of systematisation and classification, econometric and graphical methods) and the case study method. Different types of support programs and their application in different economic contexts are analysed. The quantitative analysis is based on data from 15 countries that are members of the Organisation for Economic Co-operation and Development (OECD), including effective corporate tax rates, the International Tax Competitiveness Index (ITCI), and the FDI Regulatory Restrictiveness Index (FDI Index). The qualitative analysis examines the experience of Poland, Sweden and Australia. The results show that the effectiveness of support programs depends on their design, implementation and alignment with broader economic development strategies. Tax incentives remain a powerful tool for attracting FDI, but the overall quality of the business environment also plays a crucial role. Successful strategies typically combine targeted incentives with broader improvements to the investment climate. The study emphasises the importance of policy consistency and predictability in building long-term investor confidence. Further research should focus on the long-term impact of sustainable economic development programs and innovative approaches to promoting investment in the context of global economic change and technological progress.

JEL-codes: E22 F21 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:bas:econst:y:2025:i:7:p:61-74

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