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Investment Incentives in the Central and Eastern European Transition Economies

In: The Journal of World Investment & Trade
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  • 1 Associate Professor, College of Commerce, Dankook University, Seoul, South Korea.
  • | 2 Economist, Foreign Trade Policy Division, Ministry of Foreign Affairs, Vilnius, Lithuania. This article does not reflect the views of the Lithuanian government. The authors may be contacted at «mahsong@mail.hitel.net».
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I. INTRODUCTION In an increasingly globalized world, developing countries try to strengthen their competitiveness by accumulating capital. Anticipating beneficial effects of foreign direct investment (FDI) in economic development, such as increase of capital stock, employment generation, increase in exports and technology transfer, most developing countries provide various financial, fiscal and other incentives to attract FDL1 Although such investment incentives granted by governments may increase the amount of Fm flows into those countries, some such incentives are regulated in the global trading system. Investment incentives directly influencing international trade are regulated by the Agreement on Subsidies and Countervailing Measures

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