ABSTRACT
The existence of more than 160 national and over 250 sub-national investment promotion agencies suggest fierce competition among governments around the world to attract foreign direct investment (FDI). Policymakers, especially those in transition and developing countries, hope that FDI inflows will bring muchneeded capital, new technologies, marketing techniques and management skills. Although all of these potential benefits of FDI are viewed as important, particular emphasis is placed on the contribution of FDI to increasing productivity and competitiveness of the domestic industry.
