An investment promotion agency (IPA) is most often a government agency (or occasionally a non-profit organization functioning similar to a chamber of commerce or business consulting corporation) whose mission is to attract investment to a country, state, region or city. They do this through the use of marketing activities by creating awareness about a location as an attractive destination for investment.[1] Generally, IPAs have four core functions: image building of FDI hosting country, investment generation, project management and aftercare services. While IPAs play an important role in attracting investment to developed countries[2] some IPAs have additional advocacy function.
The IPA does this by introducing investors with local suppliers (raw materials or other inputs); providing useful statistical data and business information such as macroeconomic indicators (GNP, GDP, HDI, inflation etc.), labor productivity, average wages, attractive sectors of domestic economy; practical support like securing permits or completing other administrative obligations; and by managing any investment incentives that the city, state or country may offer to foreign investors (companies or individuals).[3]
See also
editReferences
edit- ^ Abamu, Bamituni E. (23 November 2019). "Introducing Investment Promotion: A Marketing Approach to Attracting Foreign Direct Investment". International Journal of Marketing Studies. 11 (4): 91. doi:10.5539/ijms.v11n4p91. S2CID 209391551.
- ^ Campisi, Julian M.; Sottilotta, Cecilia Emma (2016). "Unfriendly or Unwanted? Reflections on FDI Attraction Policies in Italy". Rivista Italiana di Politiche Pubbliche. 11 (2): 223–250. doi:10.1483/83927.
- ^ Bellac, C.; Leibrecht, M.; Stehrer, Robert (2008). "Policies to attract Foreign Direct Investment: An industry-level analysis". EconStor. hdl:10419/121201.
Further reading
edit- Jensen, Nathan M.; Malesky, Edmund J. (2018). Incentives to Pander: How Politicians Use Corporate Welfare for Political Gain. Cambridge University Press. doi:10.1017/9781108292337. ISBN 978-1-108-41890-4.