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Investment promotion agencies and responsible business

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Direct Investment & Sustainable Development

Introduction

Foreign direct investment (FDI) is widely considered to be a key factor in economic development in middle and low income countries. Positively, it can be associated with the introduction of new technologies, job creation, access to new markets and improvements in the competitiveness of host countries. But too often, FDI has been associated with environmental degradation, increased inequality, and lack of integration with the local economy.
A number of host country institutions have a role in influencing the overall investment climate. Among them, Investment Promotion Agencies (IPAs) are often important players. They are in the front line of efforts to target investors and marketing host countries as a whole.

IIED’s work aims to identify practical opportunities for investment promotion agencies to promote inward investment that is responsible, and that can help host countries to achieve sustainable development.

Project Resources

IIED’s initial discussion paper, CSR and Trade & Investment Promotion: a literature review and discussion of key research questions, sets out some of the key issues in this under-explored area.
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A book, Responsible enterprise, foreign direct investment and investment promotion: Key issues in attracting investment for sustainable development, brings together a series of papers identifying opportunities for Investment promotion agencies to attract foreign direct investment that is associated with positive contributions to sustainable development and good corporate social responsibility practices.
Authors include IIED researchers and other sectoral experts, multilateral organizations working closely with IPAs in attracting FDI, and representatives of IPAs themselves.

The book, published in April 2008, is intended to provide a primer for investment promotion agencies and pointers for approaches that could be deployed in the future. 
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