| A1) FINANCIAL EARNINGS ! |
| BD3) Investment motivation: Market-seeking |
| C4) Financial support |
| BD3) Investment motivation: Efficiency-seeking |
| C) No associated measures |
| BD3) Investment motivation: Resources-seeking |
| C4) Financial support |
| C5) Fiscal support |
| BD5) Entry mode: Greenfield FDI |
| C4) Financial support |
| BD5) Entry mode: Sales offices |
| C4) Financial support |
| BD8) Transmission channels: Direct transfers |
| C9) Maximising benefits |
Although OFDI involves an initial outflow of capital, over time it may start to generate financial earnings. To promote the generation of such earnings, the Toolkit suggests focusing on investment motivations and entry modes that promise to generate them. Specifically, these are market-, efficiency- and resource-seeking investments as well as greenfield FDI and sales offices. In line with common practice, all of these can be supported by financial support measures, except efficiency-seeking which is not regularly supported by HCMs. Fiscal support measures can also be used to promote resource-seeking investments.
In addition, assuring the establishment and smooth functioning of the cross-border financial and banking infrastructure could promote and support the direct transfer and repatriation of financial earnings, thereby maximising the benefits from these financial earnings for the home country.
Key insights
- The generation of financial earnings from OFDI can be promoted especially by targeting financial support measures at investment motivations and entry modes that promise to generate such financial earnings.