The Role of Tax Incentives in Attracting Foreign Direct Investment

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This analysis explores the role of foreign direct investment in developing countries, indicating its favor in attracting investment.

Increased foreign direct investment is essential for economic growth in developing countries, particularly India.
The transformation to market-oriented economies has attracted significant foreign direct investment and improved economic performance.
Countries have reformed their political and economic systems to effectively compete for foreign direct investment.
Transnational corporations serve as engines of growth, driving industrial development through foreign direct investment.

Prabhakaran et al. (2025) studied this question.

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