Investment Incentives, Private Initiative, and Industrial Policy

Abstract

This paper examines three areas of concern.  The first relates to the confusing definitions of “investment” among concerned government agencies affecting responses by investors.  The second examines responses of private firms to various types of incentives such as in cases of assessing options for capital investments.  The third area looked into is with respect to industrial policy issues and focuses particularly on the role of government in priority identification, in location decision and pricing among others.