TalkInland direct investment

Investments in domestic development

Domestic investment is one of the most important economic processes to which countries attach great importance as one of the most important components of the country's economic growth and as the main engine of the economic cycle.
Also, domestic investments have a relationship with various economic variables, which led the countries to guide the 2 investment decision and create the appropriate climate for economic development and maximization of prosperity, so that the economic researchers pay great attention to the study of investments in terms of economy, finance and accounting.
respect for domestic investment at the level of the national economy, investment in new projects in the areas of public utilities and infrastructure, such as inter-cutting and secondary road projects and extensions of water and sewage connections and preparation of city maps and construction projects, housing construction and expansion of electricity and electricity generation, as well as social development in the areas of education, health and communication projects, projects and projects, which relate to economic activity for the production of goods and services in the production and service sectors such as industry, agriculture, housing, health, education and tourism.

Domestic investment is certainly a source of economic growth for countries, but unfortunately it suffers from several obstacles and problems directly related to poor management and weak strategy for development and investment.

Knowing that each segment has its own peculiarities, it is very important to outline that they go hand in hand for a better result …

The promotion of domestic investment itself can have a positive effect on the attractiveness of foreign direct investment. Domestic investment has been shown to be a strong catalyst for foreign direct investment in the hospitality industry in developing countries.
Therefore, an investment promotion policy aimed at domestic companies could attract foreign investors. Private investment by companies from developing countries signals profitable opportunities and stable conditions, and consequently stimulates foreign direct investment attracted by countries that offer appropriate combinations of location determinants, such as conditions for stable operations and access to large markets.
Therefore, stimulating domestic investment can have positive consequences for foreign direct investment.

Unlike most IPAs, we strongly recommend running a parallel program for domestic and foreign investment to achieve a better outcome.
Negligence on the part of one will certainly have a negative impact on the expected outcome of the second.

In most developing countries, domestic investment is also subject to institutions, political instability and corruption. The Chado Investment Promotion Agency proposes to use a variety of incentives and policy tools to increase domestic investment:

  1. the establishment of special economic zones or industrial parks to promote specific activities in specific regions;
  2. establishment of incubation programmes to facilitate the entry of domestic companies into certain sectors or activities;
  3. supporting cluster building to promote cooperation between domestic companies operating in the same sector or carrying out similar activities (e.g. car parts manufacturers);
  4. Financial, tax support or government guarantees for certain activities or technologies – risk finance;
  5. Public R & D integrated into the activities of the private sector and geared to their needs;
  6. Strengthening public-private development efforts

I.Economic zones and/or industrial parks

A Special Economic Zone (SEZ) is an area where business and trade laws differ from the rest of the country. SEZs are located within the national borders of a country, and their objectives include increasing the trade balance, employment, increasing investment, creating jobs and effective administration.

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Ii.Incubation programs

Incubators are perceived as a mainstay of economic development programmes. They create value by combining the entrepreneurial drive of a startup with resources that are generally available to new businesses.

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Clusters are geographic concentrations of interconnected companies or institutions that manufacture products or provide services to a particular area or industry.

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Iv. Financial and fiscal support to the government

Fiscal policy is the use of government spending and taxation to influence the economy. Governments typically use fiscal policy to promote strong and sustainable growth and reduce poverty.

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V.Public R&D

Innovation increases productivity and increases long-term prosperity

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V.Strengthening public-private efforts

A wealth of theoretical and empirical evidence acknowledges the crucial role of infrastructure in stimulating and sustaining economic growth

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