Attracting Foreign Investment to Arab Countries: Getting the Basics Right

Mohamed El-Erian and Mahmoud El-Gamal

No 9718, Working Papers from Economic Research Forum

Abstract: Foreign direct investment (FDI) is being sought by most, if not all, developing countries as a means of complementing the level of domestic investment, as well as securing economy-wide efficiency gains through the transfer of appropriate technology. To this end, policy makers have considered various incentive structures to attract FDI. This paper differentiates between "good" and "bad" types of incentives for FDI, with special focus on the experience and potential of the Arab countries.

Date: 1997-13-11, Revised 1997
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Published by The Economic Research Forum (ERF)

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