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Role of Institutions, Investment Policies, and Macroeconomic Conditions on Attracting Foreign Investments

Investments, particularly foreign direct investments (FDIs), play an important role in an economy. They fill the gaps between the savings and investment needs/plans of a country, transfer technology from developed to developing economies, increase productivity, and reduce unemployment (Jiao 2016; Sabir, Rafique, and Abbas 2019). During crises, such as the COVID-19 pandemic, FDIs can play the important roles of financially and technically supporting their local and foreign business affiliates and their host countries (OECD 2020b).


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