What is Investment Promotion Agencies (IPAs)

Foreign direct investment has been proven to be an essential element in stimulating economic growth in developing countries. Foreign direct investment has several benefits: the transfer of technology and knowledge, improving management capacity, increasing employment, improving competitiveness, and achieving a favorable balance of payments. Because of these advantages, countries are keen to attract more FDI. In this sense, the authors assess the extent to which the lockdown during the COVID-19 era may have affected FDI inflows. In addition, they explore the new role played by foreign investment promotion agencies in terms of updating FDI policies and implementing new ones—digital policies—to boost FDI entry.