Risky Winds: Investing in Wind Energy Projects in Pakistan
Investment in renewable energy sectors in many developing countries has grown significantly in the last decade. Developing countries now seek to attract investment in the renewable energy sector. Foreign investment in developing countries hinges on factors such as security of investment, entry barriers, cost of doing business, repatriation of profits, dispute resolution, etc. This is where the role of the government and policy-makers becomes critical. Unless a sector-specific policy is adopted that is not only coherent and adaptable but also extends the right incentives, foreign investors will remain reluctant to invest in the renewable energy sector even if a huge investment potential exists. This article highlights Pakistan as a case study to examine law and policy issues pertaining to investment and transaction costs associated with investing in a developing country that possesses significant wind energy potential.
Foreign Direct Investment in Pakistan: Policy Issues and Operational Implications
Given its fragile balance of payments position and urgent need to boost industrial production, Pakistan needs to significantly increase its mobilization of foreign resources. However, long-term official assistance will become increasingly scarce, while promoting large portfolio investments is not a proper market policy option due to Pakistan's underdevloped and narrow capital market. Significant increases in commercial borrowings are also not desirable. It is therefore crucial to accord high priority to foreign direct investment (FDI).
Foreign direct investment and trade in transition countries: Tracing links – A sequel
This paper deals with the interactions between outward investments of western multinationals and export performance of their affiliates in transition countries. It argues that multinationals make an important contribution to increasing, diversifying and up-grading trade, because they are able to open the access to advanced technologies and, thereby, to international markets. The paper reviews the theoretical arguments, presents and extracts some stylized facts and discusses the policy implications of our research.