Despite postulations on the effects of foreign direct investment (FDI), foreign aid, and trade on growth, empirical evidence from extant research has been mixed. The focus of recent research has shifted from the growth effects of these international flows to their poverty reduction effects....

Countries trying to attract foreign direct investment often use various tools to influence the foreign investor's allocation decision including public subsidies in the form of investment incentives. However, the effects associated with providing these incentives are often questioned, especially...