1945

Promote exports and foreign investment

Much of the debate about export strategy is related to better trade policies and institutions, more efficient physical infrastructure and the availability of skilled manpower. However, the debate goes beyond domestic issues. The export sector is dependent on the performance of product and factor markets both at home and abroad. The links between export and foreign investments are strong. Foreign investment has an important role to play in the development of a country’s exports. This chapter explains linkages between foreign investment and exports and makes recommendations as to how countries can promote export growth by adopting the ‘right’ policies towards foreign investment.

Related Subject(s): International Trade and Finance
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