Oxford Review of Economic Policy volume 29, issue 2, P361-382 2013 DOI: 10.1093/oxrep/grt016 View full text
G. B. Navaretti, A. J. Venables

Abstract: Are there benefits to the host country from multinational investments? Does potential value from these investments make active industrial policy worthwhile? We answer the first question affirmatively, having reviewed economic principles and evidence concerning the effects of projects locating in (or not being off-shored from) a country. On the second, policy can have a limited effect in influencing location decisions, but it is doubtful that it is cost effective. Implementation faces lack of information, risk …

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