| A11) ECONOMIC GROWTH |
| BD9) Time since investment: Long-term |
| C4) Financial support |
| C8) Operational support |
| C9) Maximising benefits |
There is strong empirical evidence that OFDI can increase home-country economic growth. This provides strong proof of the importance of incorporating OFDI into national strategies on economic and sustainable development, especially as the economic growth effect is a consequence of the other 10 home-country effects. It is also for that reason that this effect cannot be directly targeted by HCMs.
Because economic growth is the consequence of the other 10 home-country effects, it can only accrue in the long term. Thus, financial support measures should have long durations, and efforts to maximise benefits from OFDI should be made with a long-term perspective. Operational support on the ground should also be offered to investments over long periods of time.
Key insights
- The enhancement of home-country economic growth can be promoted especially by introducing financial support measures in a way so they support OFDI over long periods of time.