Foreign Direct Investment in Emerging Economies


Book Description

The Caribbean countries of Jamaica, Barbados and Trinidad-Tobago represent excellent examples of the increasingly important role played by Foreign Direct Investment (FDI) in less developed, micro-economies. The increased dependence of these countries on FDI, however, calls into question the attractiveness of the business environment of the region to the foreign investor. This volume examines both the investment behaviour and corporate strategies operating in these three countries, and assesses the factors which influence the motivations, location choices and market entry mode of multinationals making investments in the Caribbean.










Tax Incentives and Investment in the Eastern Caribbean


Book Description

Tax incentives have been used extensively in the countries of the Eastern Caribbean Currency Union (ECCU) to promote investment. The associated revenue losses are large, and benefits in terms of new investment have been limited, raising doubts about the cost effectiveness of the tax incentive schemes. This paper examines the effects of incentives using the marginal effective tax rate approach (METR), adapting this methodology to the case of a small open economy where the marginal investor is a nonresident. The results show that METRs are high in the region; that there is a large dispersion in the size of METRs across financing source; and that METRs on investment are larger than the overall distortion on capital, with a substantial subsidy to domestic saving. In the presence of tax holidays-the most common incentive scheme in the region-the distortion on capital basically vanishes.







Foreign Investment in Latin America and the Caribbean 2006


Book Description

This is the latest in a series of annual reports on recent trends and developments in relation to foreign direct investment (FDI) and investment strategies in Latin America and the Caribbean region. The main message of this year's report is that active and integrated FDI attraction policies linked to national development strategies are necessary to secure quality FDI. These lessons are drawn from policy practices in the more successful European and Asian countries which contrast with the more passive and disconnected FDI attraction policies evident in Latin America and the Caribbean. The 2006 report also contains chapters that analyse the experiences of two relatively small investor countries in Latin America and the Caribbean, the Republic of Korea and Portugal.




Caribbean Investment Handbook


Book Description

Reference book on national level economic policies, economic conditions and foreign investment climates in the Caribbean - covers trade policy, fiscal policy and monetary policy incentives for foreign enterprise, and discusses CARICOM economic integration efforts and caribcom common market objectives. Maps and statistical tables.