Archived — Working Paper Number 24, Canadian Government Policies Toward Inward Foreign Direct Investment, September 1998
Strategic Policy Sector
Economic Research and Policy Analysis Branch
This paper investigates the rational and effectiveness of Canadian policy regarding foreign direct investment (FDI). Whether investment rule liberalization has had a significant impact on inward FDI is ultimately and empirical question; the paper considers some evidence on this for the oil and gas sector, the financial sector and the communications sector. It looks at the potential benefits to eliminating indirect and informal barriers and whether there are net benefits to the host country in continuing to selectively restrict inward FDI. Further, the paper sets out public policy criteria against which to evaluate the consequences of Canadian government policies toward inward FDI and reviews the determinants of inward FDI.
Catalogue number: C21-24/24-1998
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