This study finds that promotion is unambiguously associated with greater FDI flows. The effectiveness of promotion, however, depends on:
• the quality of the investment climate, market size
• the level of development of the country
• the IPA's budget and type of activities it carries out
• communication with the highest level of policymakers and support from the private sector.
An important resource, 'The Effectiveness of Promotion Agencies at Attracting Foreign Direct Investment' provides many lessons about how to carry out effective investment promotion.
About: Investment promotion agencies (IPAs) exist in almost all countries around the world, but there has been no global attempt to determine whether they have been able to significantly influence the investor's decision to locate in one country rather than another.
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