Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

The movement from a defined benefit to a defined contribution pension system has important implications in the area of portfolio allocation. While the focus of defined benefit pension funds is essentially in the long term, some defined contribution funds might have incentives to invest with shorter-term horizons. The case of open pension funds, such as the ones in several countries in Latin America and Central and Eastern European countries, shows that competition on short-term returns may bring pension funds into suboptimal portfolio strategies. As policy makers become increasingly interested in finding long-term sources of financing for infrastructure and other long-term projects, it becomes essential to upgrade the regulatory framework of open pension funds. This paper contributes to the literature by proposing an investment regulatory framework based on strategic asset allocation that can be applicable to open pension funds. Based on the use of lifecycle investment strategies, the paper proposes the implementation of common portfolio benchmarks for pension funds. Three elements are emphasized for implementation of strategic asset allocation: (a) a well-defined pension objective, (b) sound governance of the portfolio benchmark, and (c) a methodology for developing the benchmark. The paper proposes the use of the approximation methodology as a starting point for designing portfolio benchmarks, and illustrates step-by-step how to build these long-term portfolios in a didactical way.

Contributory Pensions --- Financial Modeling --- Investment Incentives --- Pension Funds --- Plain Vanilla Anchor Investments

Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

The Philippines is faced with a policy dilemma in the area of corporate taxation. On the one hand, the country has, over the past few years, witnessed a decline in revenue as a share of output. On the other, it is operating in an increasingly competitive regional market for foreign direct investment. In order to remain competitive, the Philippines offers a broad array of fiscal incentives to entice inward investment and pursue the country's development goals. This paper looks at the fiscal incentives available in the Philippines, compares them with those available in the ASEAN region, and with the evidence on the efficacy of tax incentives in a global context. The paper provides some broad conclusions on the use of the various forms of tax incentives in the Philippines and on their administration.

Investments: General --- Personal Finance -Taxation --- Taxation --- Corporate Taxation --- Taxation, Subsidies, and Revenue: General --- Business Taxes and Subsidies --- Personal Income and Other Nonbusiness Taxes and Subsidies --- Investment --- Capital --- Intangible Capital --- Capacity --- Public finance & taxation --- Corporate & business tax --- Macroeconomics --- Tax incentives --- Tax holidays --- Corporate income tax --- Tax allowances --- Investment incentives --- Taxes --- National accounts --- Corporations --- Income tax --- Saving and investment --- Philippines

Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

Many countries spend significant resources on investment promotion agencies in the hope of attracting inflows of foreign direct investment. Despite the importance of this question for public policy choices, little is known about the effectiveness of investment promotion efforts. This study uses newly collected data on national investment promotion agencies in 109 countries to examine the effects of investment promotion on foreign direct investment inflows. The empirical analysis follows two approaches. First, it tests whether sectors explicitly targeted by investment promotion agencies receive more foreign direct investment in the post-targeting period relative to the pre-targeting period and non-targeted sectors. Second, it examines whether the existence of an investment promotion agency is correlated with higher foreign direct investment inflows. Results from both approaches point to the same conclusion. Investment promotion efforts appear to increase foreign direct investment inflows to developing countries. Moreover, agency characteristics, such as the agency's legal status and reporting structure, affect the effectiveness of investment promotion. There is also evidence of diversion of foreign direct investment due to investment incentives offered by other countries in the same geographic region.

Affiliated organizations --- Debt Markets --- Domestic investment --- Emerging Markets --- Finance and Financial Sector Development --- Foreign Direct Investment --- Foreign direct investment --- Foreign investors --- Income --- International Economics & Trade --- International Investors --- Investment and Investment Climate --- Investment incentives --- Investment Promotion --- Macroeconomics and Economic Growth --- Non Bank Financial Institutions --- Private Sector Development --- Public Disclosure --- Tax rates

Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

Many countries spend significant resources on investment promotion agencies in the hope of attracting inflows of foreign direct investment. Despite the importance of this question for public policy choices, little is known about the effectiveness of investment promotion efforts. This study uses newly collected data on national investment promotion agencies in 109 countries to examine the effects of investment promotion on foreign direct investment inflows. The empirical analysis follows two approaches. First, it tests whether sectors explicitly targeted by investment promotion agencies receive more foreign direct investment in the post-targeting period relative to the pre-targeting period and non-targeted sectors. Second, it examines whether the existence of an investment promotion agency is correlated with higher foreign direct investment inflows. Results from both approaches point to the same conclusion. Investment promotion efforts appear to increase foreign direct investment inflows to developing countries. Moreover, agency characteristics, such as the agency's legal status and reporting structure, affect the effectiveness of investment promotion. There is also evidence of diversion of foreign direct investment due to investment incentives offered by other countries in the same geographic region.

Affiliated organizations --- Debt Markets --- Domestic investment --- Emerging Markets --- Finance and Financial Sector Development --- Foreign Direct Investment --- Foreign direct investment --- Foreign investors --- Income --- International Economics & Trade --- International Investors --- Investment and Investment Climate --- Investment incentives --- Investment Promotion --- Macroeconomics and Economic Growth --- Non Bank Financial Institutions --- Private Sector Development --- Public Disclosure --- Tax rates

Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

Evidence shows that foreign direct investment can provide many benefits to host countries, including productivity improvements, better jobs, and knowledge transfer. Further, it can serve as a vehicle for transformation of domestic production and better integration with global value chains. Nonetheless, these benefits are not automatic. Investment policies are required to maximize the potential gains of foreign direct investment. One challenge is that there are different kinds of foreign direct investment, and each may have different economic, social, and environmental impacts. However, the literature analyzing foreign direct investment often tends to swing from an extremely case-specific focus-analyzing experiences in one particular country in a single sector during a given period-to lumping together the analysis as if it was a homogenous phenomenon. Investment policy formulation requires a framework sophisticated enough to differentiate between the various kinds of foreign direct investment, as well as potential challenges and benefits for development. It must also be simple enough to enable governments to organize and prioritize the multiple and complex variables affecting the maximization of investment benefits. This paper presents an overview of the literature on the impact of foreign direct investment. The paper argues that a logical framework is needed to organize existing evidence from research to fill gaps in the literature and make existing evidence more useful in targeting policy making.

Debt markets --- Economic theory & research --- Emerging markets --- FDI and exports --- FDI impact --- Foreign direct investment --- Global value chains --- International economics & trade --- International investment agreements --- Investment & investment climate --- Investment incentives --- Investment policy --- Investment promotion --- Investor entry --- Investor protection --- Local content --- Macroeconomics and economic growth --- Private sector development --- Productivity --- Research and development --- Trade and investment --- Wages and jobs finance and financial sector development