THE ROLE OF GOVERNMENT POLICIES IN ATTRACTING DIRECT FOREIGN INVESTMENTS
DOI:
https://doi.org/10.55439/EIT/vol11_iss5/a12Keywords:
Direct foreign investments, government policies, capital inflows, technological advancements, job creation, economic diversification, empirical analysis, political stability, legal systems, infrastructure quality, tax incentives, trade policies, policy implicationsAbstract
This article explores the role of government policies in attracting direct foreign investments and analyzes the mechanisms through which these policies influence investment decisions. The empirical analysis reveals significant findings, emphasizing the importance of political stability, transparent legal systems, infrastructure quality, tax incentives, and trade policies in attracting DFIs. The author offers recommendations for policymakers, such as enhancing policy coordination and stability, strengthening institutional frameworks, promoting ease of doing business, providing investment incentives, and developing infrastructure. Overall, the article provides valuable insights for policymakers and researchers interested in optimizing the attraction of DFIs and promoting economic growth.
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