The Rationale And Classification of National Investment Promotion Policies

Cover The Rationale And Classification of National Investment Promotion Policies
The Rationale And Classification of National Investment Promotion Policies
Richard Robinson
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Unemployment and inflation have been at modest levels. Therefore, it would appear that Hong Kong has been doing an excellent job in exploiting its position.
It should be noted that Hong Kong enjoys a highly advantageous geo-political position, a long-standing tradition of honest and efficient government, and a hardworking indigenous population skilled in international trade and finance.
TYPE 2 - VIRTUALLY UNRESTRICTED ENTRY, BUT WITH INCENTIVES - The major administrative difference from Type 1
...is that Type 2 countries require the registration of incoming direct investment and some (Ireland and Venezeuela) > of technology contracts as well. In substance, the difference between Type 1 and 2 is essentially one of degree; in the Type 2 case, the incentives are national in scope and are designed to be of major importance in rewarding flows of investment and technology deemed to be especially supportive of national policies. These incentives may be essentially in the nature of sub- sidies (as in the case of Ireland) or come largely in the form of tax incentives (as in Brazil and Taiwan) .

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