Columbia International Affairs Online: Policy Briefs

CIAO DATE: 03/2010

Improving infrastructure or lowering taxes to attract foreign direct investment?

Christian Bellak, Markus Leibrecht

June 2009

Columbia Center on Sustainable Investment


This perspective compares the impact of improving infrastructure versus lowering taxes on attracting and keeping FDI and discusses the policy implications for countries seeking to attract FDI, especially countries currently debating the relative merits of cutting taxes versus increased spending. (Also available in Chinese.)