FDI Qualities Review of Croatia
The FDI Qualities Review of Croatia provides policy recommendations on the design and implementation of a new strategic framework for investment promotion and facilitation in Croatia. It provides an assessment of how foreign direct investment (FDI) contributes to sustainable development, including p...
| Formato: | Libro electrónico |
|---|---|
| Idioma: | Inglés |
| Publicado: |
Paris :
Organization for Economic Cooperation & Development
2023.
|
| Edición: | 1st ed |
| Ver en Biblioteca Universitat Ramon Llull: | https://discovery.url.edu/permalink/34CSUC_URL/1im36ta/alma991009786727906719 |
Tabla de Contenidos:
- Intro
- Preface
- Foreword
- Abbreviations and acronyms
- Executive summary
- 1 Overview and key policy considerations
- Trends and qualities of foreign direct investment in Croatia
- Investment promotion and facilitation for a sustainable and resilient recovery
- Harnessing investment for regional development
- Towards more effective investment tax incentives
- References
- 2 Trends and qualities of foreign direct investment in Croatia
- Summary
- Potential for increased integration in global production networks
- Boosting FDI as driver of future growth
- Diversifying into high productivity activities through FDI
- Building on existing comparative advantages
- Leveraging higher productivity and innovation performance of foreign firms
- Supporting sustainable development through FDI
- FDI creates jobs in Croatia but contributes to income inequality among workers as foreign firms pay higher wages than domestic firms
- Foreign firms create employment opportunities for women
- FDI supports sustainable resource management and the expansion of the renewable energy sector in Croatia
- References
- Notes
- 3 Investment promotion and facilitation for a sustainable and resilient recovery
- Summary and policy recommendations
- The institutional framework for investment promotion and facilitation
- The institutional framework for investment promotion and facilitation has gone through many organisational reforms
- The Internationalisation Directorate has been entrusted with a higher number of mandates than other OECD IPAs
- Resources devoted to investment promotion and facilitation are gradually increasing but challenges remain
- Investment generation efforts could be strengthened and better targeted
- Investment facilitation could focus more on embedding foreign MNEs in local value chains.
- Promoting and attracting investment: strategy and tools
- A well-articulated national strategy and action plan could provide a coherent framework for investment promotion
- Clearly defined investment prioritisation criteria could help Croatia target quality FDI in line with its development objectives
- M&
- E tools and processes will be crucial to track and evaluate the implementation of the forthcoming strategic framework for investment promotion and facilitation
- Formal coordination mechanisms could help address resource constraints
- Leveraging investment promotion and facilitation for sustainable development
- Knowledge spillovers from FDI require strengthening domestic firms' capacities
- R&
- D investments could be scaled up by facilitating collaboration between Croatia's business and innovation ecosystems
- Strengthening labour market institutions could improve FDI's contribution to job creation and skills development
- Promoting green and low-carbon investment will require removing regulatory barriers for renewable energy projects
- Spatial planning rules could be further harmonised to facilitate land acquisition for large-scale investment projects
- References
- Notes
- 4 Harnessing investment for regional development
- Summary and policy recommendations
- Investment in support of regional development in Croatia: trends and impacts
- The geography of foreign investment in Croatia
- The impacts of FDI on regional development are positive but unevenly distributed
- Place-sensitive policies to promote FDI for regional development
- Decentralisation has shaped Croatia's policy and institutional framework on investment
- Strategies should better connect investment promotion to regional development
- The National Plan on Investment Promotion should include a place-based dimension.
- …and subnational governments' strategies should include an investment promotion angle
- Setting the "right" subnational level for an investment promotion strategy can help overcome fragmented planning
- Craft place-sensitive policies to attract FDI for balanced regional development
- Investment promotion efforts to attract FDI for regional development can be improved
- Attracting FDI for regional development goes beyond typical investment promotion efforts
- The multi-level institutional framework for investment and regional development
- Several national and subnational bodies share the mandate to promote investment
- Subnational investment promotion evolved with the absorption of the IPA into a Ministry
- Subnational agencies promoting investment are crucial but highly fragmented players
- There is a plethora of subnational development agencies but their impact on FDI is unclear
- Croatia should clarify subnational bodies' engagement on investment promotion
- There is a large discretion in how local government authorities attract investment
- Coordination mechanisms could be improved across tiers of government
- Coordination can hardly take place when mandates are not well defined in the first place
- Coordination could be particularly reinforced over some strategic investment matters
- Croatia has several options to strengthen coordination on subnational investment
- References
- 5 Towards more effective investment tax incentives
- Summary and policy recommendations
- The tax system is only one of many factors for investment decisions
- Landscape of investment tax and non-tax incentives
- Incentives are governed by EU State aid rules
- The Investment Promotion Act grants tax and financial incentives to spur new investment, job creation and regional development.
- CIT incentives offer substantial reductions from statutory rates
- Financial grants are available for job creation and training
- Financial grants target capital costs related to high-technology equipment
- Land and buildings can be leased rent-free under certain conditions
- Faster administrative procedures available for Strategic Investment Projects
- R&
- D activities incentivised through tax benefits and financial grants
- Economic zones offer other tax and non-tax benefits and business support services
- Sub-national governments grant additional incentives
- Incentives are governed by different institutions and under various legal acts
- Assessing design of investment tax incentives
- Consider moving from income-based to expenditure-based tax incentives
- Consider if eligibility conditions best support policy goals
- Incentives could further support costs of job creation and skills development
- Assess if changes to tax incentives are supporting regional development
- Expenditure-based incentives could support technology upgrading
- Assess tourism incentives ahead of planned reforms
- Transparency can increase take up of incentives
- Monitoring and evaluation
- Croatia monitors incentive take-up and compliance
- Efforts to evaluate incentive polices could be strengthened
- References
- Notes.
