Economic effects and security concerns both to be considered in foreign investment screening
Published: 20 Oct 2022
Foreign direct investment (FDI) is a key driver of economic growth and welfare. But how should security and economic concerns be balanced when deciding on a screening mechanism? This is discussed in a new paper from the National Board of Trade Sweden.
As of today, there is no consensus on how to view the potential trade-offs between security and economic concerns linked to foreign direct investments to a nation.
– Which factors that attract investments to a nation are well researched. What is less researched, however, is the potential effects of an investment screening mechanism on the amount and quality of investments received by a country, says Patrik Tingvall, chief economist at the National Board of Trade Sweden.
A balance between security and economic concerns is of great national value. This paper examines the existing research on what attracts investments and links it to an investment screening mechanism in light of a coming legislation on an investment screening mechanism in Sweden.
Read more and download the full report
Perspectives on the Economic Effects of FDI and Investment Screening