Ankoor yogesh kulkarni dhruv poojari aarthy chellsamy


will come Investment promotion, Information Asymmetries and FDI inflows



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IMPACT OF FDI PROMOTIONS ON VARIOUS SECTORS OF THE INDIAN ECONOMY TATHAPI
will come Investment promotion, Information Asymmetries and FDI inflows This paper states that there is an information asymmetry between the host countries and potential investors who want to have a foreign direct Investment. This asymmetry acts as a barrier in investment and FDI promotion can be a tool to reduce asymmetry. This paper analyses the impact of this tool on asymmetry and concludes that promotion reduces


Tathapi
(UGC Care Journal)
ISSN:2320-0693
Vol-19-Issue-24-June-2020 Page Copyright ⓒ Author asymmetry and leads to higher FDI inflows in developing countries while there is no link found for industrialized countries. Investment promotion agencies have a lesser role to play in industrialized countries. The promotion is said to be cost effective since, in this paper, for every $1 spent on promotions, there is an FDI inflow of $189.

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