ABSTRACT
Restrictions may be placed upon investment in city-based regions where growth has become congested, and the restrictions may impede both domestic and foreign investment. In addition to the laws and regulations that explicitly limit foreign direct investment (FDI), other laws and regulations and informal means can also restrict FDI in particular circumstances. A government may provide regional investment incentives, with the objective of stimulating the development of disadvantaged regions; and it may offer financial assistance for investment in certain sectors. Domestically-owned firms may be given preference over foreign-owned firms in the allocation of granting subsidies. Competition or antitrust policy can prevent an acquisition by a large foreign corporation, even though the competition policy has been created with no intention of limiting foreign investment. Domestic subsidy programs have increasingly been the focus of international negotiations. One area of domestic policy that may raise the barriers to foreign investment is the increase in the size of the not-for-sale segment of the economy.
