Investment promotion agency

An investment promotion agency (IPA) is most often a government agency (or occasionally a non-profit organization functioning similar to a chamber of commerce or business consulting corporation) whose mission is to attract investment to a country, state, region or city. They do this through the use of marketing activities by creating awareness about a location as an attractive destination for investment^[1] Generally, IPAs have four core functions: image building of FDI hosting country, investment generation, project management and aftercare services. While IPAs play an important role in attracting investment to developed countries^[2] some IPAs have additional advocacy function.

The IPA does this by introducing investors with local suppliers (raw materials or other inputs); providing useful statistical data and business information such as macroeconomic indicators (GNP, GDP, HDI, inflation etc.), labor productivity, average wages, attractive sectors of domestic economy; practical support like securing permits or completing other administrative obligations; and by managing any investment incentives that the city, state or country may offer to foreign investors (companies or individuals).^[3]

See also

• Foreign direct investment
• World Association of Investment Promotion Agencies

Further reading

• Jensen, Nathan M.; Malesky, Edmund J. (2018). Incentives to Pander: How Politicians Use Corporate Welfare for Political Gain. Cambridge University Press.
  ISBN 978-1-108-41890-4
  .