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Communication from ASEAN - Investment Incentives
World Trade Organization WT/WGTI/W/41 3 July 1998 (98-2628) Working Group on the Relationship between Trade and Investment Original: English communication from asean The following communication, dated 15 June 1998, has been received from the Permanent Mission of the Republic of Singapore on behalf of the ASEAN countries with the request that it be circulated to Members. _______________ Introduction A characteristic of current policy attitudes towards Foreign Direct Investment (FDI) is the recognition that it has a beneficial impact on economic development and growth. This recognition has been the key impetus behind the search by governments for the appropriate policy instruments to facilitate and enhance FDI flows and capital accumulation. Investment incentives have long been recognized as useful policy instruments in this respect. This conventional wisdom is, however, being challenged. The recent academic debate cautioning against the use of