Benefit Segmentation for Foreign Direct Investor Market...

122

Social Sciences and Humanities Review Volume 01 No 01 June 2013 ISSN 2279-3933

Benefit Segmentation Strategy for Foreign Direct Investor

Market an instrument for aligning FDI incentives (Conceptual

Study)

WM Rohan Laksiri and PEDD Silva

Abstract

Segmentation of foreign investors has not received considerable attention in the

literature For simplicity purpose most government and investment promotion

organisations differentiate foreign direct investors only in terms of their country

of origin and volume of investment Additional factors such as scale of

investment numbers employed export orientation or sectorindustry also

moderately considered in determining the entitlement to incentives Recognising

the importance of segmentation for destination marketers this conceptual study

attempts to discuss the ways to align incentives for investors By acknowledging

the importance of benefit segmentation theory and discussing its possible

application to the FD investor market this paper suggests that destination

incentives for FD investors should develop from an analysis of its past existing

and potential investment customersrsquo preferences on it The paper concludes with

a discussion on a theoretical model for developing incentives for foreign direct

investors

123


Introduction

Foreign Direct Investment (FDI) is vital and essential to develop a country

whilst FDI inflows and outflows are likely to fluctuate overtime As such

attracting as well as retaining FDI is therefore utmost importance to a country

irrespective to its state of economic development However this is not an easy

task inasmuch as a growing number of countries compete to obtain FDI in the

global market The pace of global competition to attract FDI is not known but it

is widespread (Oman 2000) As a result countries tend to present themselves

unique to investors using different strategies Amongst these strategies

highlighting the possession of exceptional resources potential opportunities

superior infrastructure and other kinds of incentives offers ie tax holidays

import duty exemption permission to repatriate profit etc are just a few to

name

The competition for FDI may be higher amongst the countries that provide a

same set of incentives to foreign investors National and sub-national

governments are therefore inclined to reappraise investment policies as to

absorb and retain the ldquoright kindrdquo of FDI as described by prior scholarly works

(Dunning 2004) The choice of location for FDI seems to depend on several

factors However it may be difficult to measure or observe the impact of these

factors for investment decisions Traditional examination of FDI decisions tends

to emphasise several factors influence with this regards These forces are

undoubtedly important in explaining foreign investment decisions of

Multinational Enterprises (MNEs) Nevertheless this desk study is not aimed to

expand the existing list of such factors but to use marketing tool benefit

segmentation to conceptualize the FD investorsrsquo market As such our endeavour

124


is to present a conceptual framework which can be useful for developing FDI

incentive strategies and in so doing this paper contributes to the FDI literature

In the first section objectives and the conceptual framework of the study will be

presented That will continue to a set of operational definitions for the main

constructs in the conceptual framework in an attempt to minimise the potential

ambiguities That will follow to some of the theories and perspectives on

destination attractiveness market segmentation and FD incentives developed by

economists and marketers Finally discussion and conclusion will be made on

the conceptual framework its application to a given destination and potential

benefits of using the benefit segmentation to the FD investor market

Conceptual Framework

This paper attempts to organize three constructs that have been used in different

disciplines The dependent variables of destination attractiveness are mainly

presented in the literature concerned with tourism The construct ldquoincentives for

FD investorsrdquo are widely discussed in economics and international management

literature The construct ldquoinvestor segmentation strategyrdquo appears to be an

incremental uplift of the segmentation concept in marketing literature The

conceptual causal relationships amongst these three ie destination

attractiveness incentives for FD investors and investor segmentation strategy

are depicted in Figure 1 This framework is based on the premise that

interactions of inter-disciplinal constructs market segmentation and FD

incentives constitute predictable interrelated properties for explaining the

performance of the dependent construct namely destination attractiveness

Simply this model suggests that market segmentation concept in marketing

literature enables to provide valuable insights into the process of attracting

foreign direct investors to a destination

125


Definition of Main Constructs

Destination Attractiveness

FD investors are in search of favourable destinations for investments This may

be a function of several factors Amongst these factors host destination image

psychic distance to home country relative competitive position for the

respective industry foreign direct incentives provided by the host government

are just a few to highlight Destination attractiveness is therefore defined in this

paper as ldquothe host countryrsquos power to attract foreign direct investorsrdquo

Incentives for FD Investors

FDI incentives have been defined as ldquoany measurable advantages offered to

specific enterprises or categories of enterprises by (or at the direction of) a

government in order to encourage them to behave in a certain mannerrdquo This

includes ldquomeasureshellipdesigned either to increase the rate of return of a

particular FDI undertaking or to reduce (or redistribute) its costs or risksrdquo

(Cass 2007) The major components of incentives for FD investors are outlined

in table 3

126


Figure 1 Conceptual Framework of the Stu

Investor Segmentation Strategy

In compliance with the existing marketing literature the investor segmentation

is defined in terms of ldquothe process of subdividing a foreign investor market into

distinct subsets that behave similar ways in response to a similar set of benefits

offered by (or at the direction of) the host governmentrdquo In this context

ldquoinvestor segmentation strategyrdquo refers to use of information about foreign

direct investor market segments to design a program(s) to appeal to a specific

existing market segment(s)


Destinations are places with some form of actual or perceived boundary such as

the physical boundary of an island political boundaries or even market-created

boundaries Destinations can be either micro or macro Macro destinations

contain thousands of micro destinations including regions states cities towns

and specific attractions (Kotler et al 2006) Destination marketing is

increasingly becoming competitive at the present world (Buhalis 1999)

Attracting tourists andor investors is great priority for many countries perhaps

IInncceennttiivveess ffoorr

FFDD IInnvveessttoorrss

IInnvveessttoorr

sseeggmmeennttaattiioonn

ssttrraatteeggyy

DDeessttiinnaattiioonn

AAttttrraaccttiivveenneessss

127


for all the countries in the globe Albeit destination marketing literature is full

with tourism related topics (eg Buhalis D 2000) less seems to be devoted to

investment field (eg Young 2005) In seeking foreign investments destinations

compete with each other in the process of seeking investments This competition

can prevail within different statesregionsprovinces of a single country or

among different countries in the same region Likewise this can be a

competition between continents in the world ie Asia Europe Africa etc in

addition to the individual country competition The destination attractiveness is

a means that host government can influence FD investorsrsquo decision making

(Young 2005)

Destination attractiveness is a relative rather than an absolute concept (Cesario

1973)It is defined in the literature of tourism as the state of touristsrsquo agreement

that a destination is a recommendable place to visit (Chen amp Hsu 2000) The

same definition would easily be applicable to the investment context by

substituting ldquotouristsrsquo to investorsrsquordquo and ldquovisit to investrdquo It would be possible

to point and list many reasons or factors to argue why particular destination is

more attractive than others either to tourists or to investors Such reasons or

factors can be considered as the motives for locational decisions and are listed in

Table 1 and 2 The attractiveness of a destination can adversely be affected by

violence political instability natural catastrophe adverse environmental factors

and overcrowding (Kotler et al 2006)

Segmentation

The concept of market segmentation has further been discussed in the literature

after the publication of pioneering article by Wendell Smith in1956 (Wind

1978 Peter amp Ginter 1987 Yankelovich amp Meer 2006) The current marketing

practice of customer segmentation is perhaps the cornerstone that facilitates for

128


profitable exchanges As to the economic language Smith (1956) ldquosegmentation

is disaggregative in its effects and tends to bring about recognition of several

demand schedules where only one was recognized beforehellip on the other hand

consists of viewing a heterogeneous market as a number of smaller

homogeneous markets in response to differing product preferences among

important market segmentsrdquo Continuing along with the same language as Smith

(1956) Peter and Ginter (1987) views market segmentations as heterogeneity

exists in demand functions that enable to disaggregate market demand into

segments in accordance with distinct demand functions Peter and Ginter

maintain a strong proposition that emphasises demand functions should be the

basis for a segmentation definition

As discussed by Peter and Ginter (1987) under the auspices of ideal conditions

the aggregate market may consist of subsets or segments and relatively small

differences tend to appear within-group in individual demand functions in

comparison with the between-group differences However various firms

conclusions about the number and properties of market segments can vary in

accordance with conceptual and analytic approaches used for this purpose As a

result competing firms are likely to have different perceptions associated with

the market segment structure that exhibits demand heterogeneity in a market

And perceptions of segments seem to provide a basis for marketing strategy

Accordingly such perceptions may be a determinant of competitive

performance As such the accuracy of the firms perception of market

segmentation is often seen as a critical determinant of competitive advantage

The underpinning rationale for segmentation is that customers who are grouped

on the basis of similar needs and buying behaviour are likely to demonstrate a

nearly similar response to marketing efforts and strategies (Ahmad 2003) As

per the argument of Peter amp Ginter (1987) the market segmentation is a market

condition or perceptions about it

129


Segmentation studies use a basis such as demographic socio economic

psychographic and behavioural or a combination of these bases to segment

markets Once the alternative variables for segmentation have been identified

the main question would then seem to be the selection of the best basis for

segmentation (Haley 1984) The segmentation based only on demographic

variables lost its ability to guide companiesrsquo decisions by the early 1960s

(Yankelovich and Meer 2006) However in international segmentation studies

information at the country level such as geographic political economic and

cultural data has often been used as a prime basis for grouping countries

(Hofstede et al 1999) Highlighting the behavioral and psychological variables

importance in international context Hofstede et al use in their study the

consumer means-end chains (MECs) where the perceived means-end

relationships between attributes benefits and values are measured at the

individual level to recognize the market segments

The idea that all markets can be profitably segmented has received almost as

widespread acceptance as the marketing concept itself gained as early as the

1960s (Haley 1968) Just as some customers are different from each other so do

the investors irrespective to the investment timeframe (short-term or long-term)

investment objectives (more in tune with future direction than past portfolio) or

interdependence (insiders employees and alliance partners) Different classes

of investors have different appetites for growth profitability cash-flow

generation and risk (The Boston Consulting Group 2002)

There are many ways to segment investors Table 1 envisages some details

about past endeavours to segment investors Surprisingly many of these

segmentation researches on investors are concerned with the traditional

variables such as the types of ownership (Grinblatt and Keloharju 2000 Liu et

al 2008) investment period (Ngowi 2002) the types of industry (Ngowi

130


2002) and source country (Wei 1995 Ngowi 2002) Within the literature of

consumer market segmentations it is basically limited to demographic and

geographic segmentations As in the consumer market these demographic

variables may have less predictive ability than psychographic variables A group

of investors may share similar geographic and demographic characteristics

whilst their investment behaviour and the selection of investment location tend

to be very different from each other In this respect the use of psychographic

data in terms of their interests and opinions will enable destination marketers to

segregate investors more effectively Nevertheless several authors (see Sullivan

amp Miller 1996 Murphy and Soutar 2005 Lu et al 2007 Kasilingam and

Jayabal 2009 Lozada 2006) have tried to use psychological variables such as

motives and preferences for segmenting the investor market

Benefit Segmentation

The benefit segmentation is amongst many other ways of segmenting markets

The principal approaches as presented above includes geographic

demographic behavioural and psychological The benefits segmentation falls

under one of the methods of psychological segmentation and it is of particular

interest of marketers because it never fails to provide fresh insight into markets

(Haley 1995) The belief underlying this segmentation strategy is that the

benefits which people are seeking in consuming a given product are the basic

reasons for the existence of true market segments (Haley 1968 1983 Sullivan

amp Miller 1996) This approach is based on the assumption that consumer value

systems are able to measure in detail together with the product and its attributes

of interest While this concept seems simple enough it is very complex in

practice (Haley 1995) Although it is considered as a complex approach to

segmentation experience with this approach has shown that benefits sought by

consumers determine their behaviour much more accurately than do

131


demographic characteristics or volume of consumption (Haley 1968 1983

Sullivan and Miller 1996) In essence people differ not simply because they

live in an urban versus a rural setting but because their underlying needs and

wants are different (Sullivan and Miller 1996) Benefit segmentation is a

technique that segments customers on the basis of desired or sought benefit

(Ahmad 2003)

A market segment can be defined as a group of existing or potential customers

with some common characteristic which is relevant in explaining and

forecasting their response to a supplierrsquos marketing stimuli (Wind and Cardozo

1974) In benefit segmentation each segment is identified by the benefits that it

is seeking It is however the total configuration of benefits sought which

distinguishes one segment from another rather than the fact that one segment is

seeking one particular benefit and another a quite different benefit (Haley

1968)

132


Table 1 Investor Market Segmentation

Author Year Basis

for segmentation

Context Segments

Grinblatt

amp

Keloharju

1998 Ownership Finland Stock Market Households

Nonprofit institutions

General Government

Finance amp Insurance

Institutes

Non Financial

Corporations

Foreign Investors

Sullivan amp

Miller

1996 MotivesBenefits

Informal Venture Capital

Market

Economic Investors

Hedonistic Investors

Altruistic Investors

Wei 1995 Source Country FDI Market Overseas Chineese

Domestic

Investors

Institutional

133


Foriegn Countries

Ngowi 2002 Source Country Period of

Investment Type of the

industry Mode of Entry

FDI Market

Murphy amp

Soutar

2005 Preferences Australian Stock Exchange The Explorers

The Risk-Averse Investors

The Traders and

The Contrarian Investors

Liu et al 2007 Demographic

characteristics of

the individual

investor

Knowledge of

investment

Financial maturity

Psychological amp

Behavioural

variables

Individual Investor Market

Conceptual Study

Not clear

Kasilingam 2009 Motives Individual Investors in Tamil Family Oriented

134


amp Jayabal Nadu Self Support

Least Motivated

Lozada 2006 Motives FDI Firms which must invest and

whose only question is where

to go

Firms which may invest and

whose question is twofold

ldquohow and where to gordquo

Lu Liao amp

Yang

2008 Incentives International Logistic Zones Firms that preferred political

stability and location factors

Those which preferred low-

cost and port-related factors

and

Those which preferred

agglomeration effect and

resource factors

135


Incentives for FD investors

The year 2008 marked the end of growth cycle in FDI that was started 2003

after a decline in the early 2000s as depicted in Figure 1 Despite radical

changes occurred during the last decade FDI played dominant role in both

developed and developing world in achieving their macro economic objectives

For the Governments of both developed and developing countries it is important

to promote destinations for attracting FD investors and to maintain an overall

favourable business and investment climate (Young 2005) In this regard

investment promotion incentives can play a proactive role in both retaining

existing foreign direct investors and attracting new investors The key is to

identify MNE requirements change the incentives to fill them

The major motives behind the growth of FDI remain on several factors

UNCTAD (2008) classifies them into three broad categories respectively in their

importance market-seeking and resource-seeking and efficiency-seeking

Existing literature on locational determinants has no general agreement Table 2

summarizes the locational determinants explained by previous researchers

Figure 1 Global FDI Inflows 1990-2008

136


Source UNCTAD 2009

Table 2 Locational Determinants

Author Year Locational Determinants

Dunning JH 2004 The motivation for the FDI

The economic and the business

environment

The mode of entry or expansion of the

FDI

UNCTAD 1998 Policy framework for FDI

Economic Determinants

Business Facilitation Services

UNCTAD 2008 Market-seeking

Efficiency-seeking

Resource-seeking

Martin and Salomon

(in Henisz and

Macher 2004)

2003 Firmrsquos own past experience in the host

country

The tacitness of the technology

involved

The predictability of the policy

environment

Previous investment decisions of peer

firms

137


Mopp

1998 Internal market size

Access to external markets

Skillstechnology

Infrastructure

Access to inputs

Quality of life

Political stability

Henisz and Macher 2004 Firm level factors

Experience

Technological Capabilities

Country level factors

Institutional environment

Technological environment

Kinoshita amp Campos 2004 Agglomeration

The degree of external liberalization

The quality of the bureaucracy

Delios amp Yang 2002 The Special Economic Zones (SEZs)

Opening Coastal Cities (OCCs)

Erdal amp Tatoglu 2002 The size of domestic market

Openness of the economy to foreign

trade

Infrastructure of the host country

Attractiveness of the domestic market

External and internal economic stability

138


Blomstroumlm 2002 Market size

Real income levels

Skill levels

The availability of infrastructure and

other resource

Fitzgerald 2001 Regulatory incentives

Property rights and market access rules

Environmental protection

Labour standards

Lu Liao amp Yang 2008 Cost

Agglomeration

Resource

Port

Policy

Political stability

Location and transport

Economic

Holland amp Pain 1998 Past trade linkages

Indicators of privatisation and

Relative labour costs

Most of the Locational decisions presented in Table 2 are based on both

empirical and theoretical grounds concerned with two directions short run

controllable and short run uncontrollable to the host government or investment

139


promotion organizations Most controllable determinants to the host government

and investment promotion organisations tend to focus on offering tax incentives

to attract foreign direct investment This has become a global phenomenon and a

part of economic globalization as from the 1990s (Li 2006) Many countries

engage in either proactive or defensive incentive strategies aiming at attracting

foreign direct investments in the competition with other destinations

(Christiansen 2003) The types of incentives used by the countries may vary

along with several dimensions

Literature on incentives for attracting FDI is mainly confined with the taxfiscal

incentives (Morisset et al 1995) For countries wanting to attract foreign direct

investment (FDI) tax incentives may not be enough it may be necessary to

ensure that it has adequate fiscal as well as financial and other incentives to

attract the investors Table 3 shows the types of incentives offered to the foreign

direct investors as pinpointed in previous studies These incentives are further

classified (in table 4) into three main branches economic Incentives other

policy based incentives and entry- exit procedures ldquoEntitlement to incentives

can be based on criteria such as scale of investment numbers employed export

orientation or sectorindustryrdquo (Fergus 2006) At the same time there is a

disagreement wether the incentives should be provided or not so as to attract

FDI Morisset et al (1995) draw a conclusion ldquoincentives will generally neither

make up for serious deficiencies in the investment environment nor generate the

desired externalitiesrdquo This view is further supported by Blomstroumlm et al (2000)

concluding that incentives might have only a marginal role in the attraction of

FDI

140


Table 3 Types of Incentives for FD Investors

Author Year Incentives

UNCTAD 1996 Tax Holidays

Accelerated depreciation

Investment Allowance

Import Duty exemption

Duty drawback

Oman 1999 Financial and fiscal incentives

Environmental and labour standards

Export processing zones

International regional-integration agreements

Privatisation of state-owned enterprises

Strengthened judicial systems

Blomstroumlm 2002 Fiscal lower taxes

Financial incentives such as grants and preferential

loans

Other incentives like market preferences and monopoly

rights

Rajan 2005 Tax Incentives

reduced corporate income taxes

tax holidays

investment allowances and tax credits

accelerated depreciation

exemptions from selected indirect taxes

141


export processing zones

Das amp Pant 2006 Fiscal incentives

Financial incentives

UNCTAD

2000

In

Cass

2007 Fiscal incentives

Full or partial holidays from tax

Reductions in the standard rate of tax

Tax reductions conditional on reinvestment of profits

Investment allowances and investment tax credits

Accelerated depreciation of assets

Preferential treatment of profit on exports

Tax deductions based on specific types of expenditure

(eg RampD)

Exemptions from import duties on capital goods or

other inputs

Financial incentives include

Cash grants

Provision of subsidized facilities such as factories or

sites

Provision of infrastructure related to new facilities

such as roads and links to utilities and direct subsidies

Export Processing Zones (EPZs)

Special Economic Zones (SEZs)

Free Trade Zones (FTZs)

Cass 2007 Company taxation rate

Tax holidays

142


Tax credits

Grants

Subsidized locations

Free trade zones

Goumlrg 2004 Low exit costs

143


Table 4 Incentives for FD Investors

Economic Incentives Other Policy Based Incentives Entry- Exit

Procedures Fiscal Financial Market Locations Regulations

Tax Holidays

full

partial

Tax reductions

Reductions in the

standard rate of tax

Tax reductions

conditional on

reinvestment of

profits

Investment allowances

and investment tax credits


of assets

Cash grants related

to

the value of

assets

invested

numbers

employed or

training costs

Provision of

subsidized facilities

Provision of

infrastructure

Market

preferences

Monopoly

rights

International

Market

Access

Subsidized

locations

Free trade

zones

Export

Processing

Zones

Special

Economic

Zones

Free Trade

Zones

Privatization

Environment standards

Labour standards and

laws

Property Right

Easy and

fast Entry

Low exit

cost

144


Preferential treatment of

profit on exports

Tax deductions based on

specific types of

expenditure

Exemption from import

duties on capital goods or

other inputs

145


Discussion

Being a theoretical paper on segmentation providing implementation guidance

is important As Dibb (1999) suggests the implementation guidance can be

given at three different stages of segmentation process These are before the

segmentation of FD investor market during the segmentation process and after

the segmentation process Our discussion is based on Figure 2 During the first

stage investorsrsquo expectations on benefits were identified

Step1 Understanding Expectations

Understanding of investor expectations can be done through a survey of

investors or interviews In this respect it is advisable to look at three basic

segments of investors past current and future potential (including past) This

will enable the destination marketers to understand why they loosed the past

investors how to keep andor stimulate the reinvestment of the current investors

and how to attract the potential investors Each destination should develop a

questionnaire or interview checklist based on the possible benefits that can be

offered to the investors The questionnaire should carefully be designed in order

to measure the investor values system to recognize the benefits sought Table 4

is expected to provide clear classification on type of potential benefits FD

investors may seek That can also be used to develop the questionnaire on

benefits sought These data may be obtained by asking the investors to rate their

level of agreement with specific statement that captures benefits intended

146


Figure 2

Step 2 Segmenting Investor Market

Several alternative statistical approaches can be employed among them the so-

called Q technique of factor analysis multidimensional scaling and other

distance measures (Haley 1995) Applying the Haleyrsquos (1968 1995) idea to

investment context all of these methods relate to the ratings of each potential or

actual respondent to those of every other respondent and then seek clusters of

investors with similar rating patterns Factor analysis is important to summarize

a large number of investment incentives into a small number of underlying

dimensions called critical factors whilst cluster analysis is useful to distinguish

investorsrsquo critical incentive preferences and an analysis of variance (ANOVA)

is to segment investorsrsquo investment incentive preferences grouped according to

their preferences (Lu et al 2008) In view of the fact that the items rated are

potential investment benefits the clusters that emerge will be groups of

investors who attribute similar degrees of importance to the various benefits

The ultimate objective of statistical analysis is to generate investor segments

each representing a potentially productive focal point for determining the

destination incentive package Each FD investor segment should be identified

based on the benefits they seek

2 Segmenting investor Market

(analysing research data)

1 Understanding FD investorsrsquo

expectations on benefits

(Research)

4 Developing the Incentive

Package for the FD Investors

3 Selecting the most profitable

segments (Market Targeting)

147


Step 3 Evaluating

The selection of best segments (target markets) receives widespread coverage in

marketing literature The underlining question in this stage is recognising

ldquowhich are the best market segments for the destinationrdquo Based on the

recognised FD investor segments destination marketers need to evaluate them

along with the volume of investment (substantiality) segment growth degree of

influence on achieving macro economic goals of the destination (eg

employment balance of payment and so on) Destination marketers at this step

end up with determining the most profitable segment of the FD investors for the

respective destination

Step 4 Developing Incentives Package

Any investment promotion strategy must be geared towards the following (a)

recognising the potential investor segments who perceive the host destination as

potential location for investment (b) recognising the set of benefits required to

attract prospective investor segments and (c) establishing the tailored incentives

to prospective and current investorsrsquo needs There is no ideal universal incentive

strategy on FDI Strategy has to suit the particular conditions of the country at

the particular times and the benefits seek by the investors Moreover it should

evolve as its needs change In other word destination marketers need to modify

their demand function through the modification of incentive packages

148


Conclusion

This paper is used to put forward proposals with the intention of helping

destination marketers at a time Sri Lankan government endeavours to boost the

image of the island as an attractive destination for foreign investors having

completely defeated the Tamil tigers We present a conceptual framework casts

light on the critical issue that should be taken into account whilst developing

incentive package for FD investors with the aim of attracting potential and

keeping existing investors This conceptual framework can be modified through

the modification of demand function This study assumed that the each benefit

segment has different demand function and demand for FDI is a function of the

total benefit package offered From a theoretical point of view this paper

provides systematic guidance for benefit segmentation for FD Investors We

expect that this conceptual foundation will provide impetus to scholars to

conduct empirical studies using this framework and make proposals to improve

it

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Blomstroumlm M (2002) The Economics of International Investment Incentives

OECD

Buhalis D (2000) ldquoMarketing the competitive destination of the futurerdquo

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Cass F ( 2006)Attracting FDI to transition countries the use of incentives and

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Cesario (1973) Generalized Trip Distribution Model Journal of Regional

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Changhui Z Delios A and Yang JY (2002) The location of Japanese foreign

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Chen amp Hsu (2000) Measurement of Korean Touristsrsquo Perceived Images of

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Christiansen H (2003) Incentive Based Competition for FDI in Developing

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March 2009)

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Das SK and Pant M (2006) Incentives for Attracting FDI in South Asia A

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Dibb (1999) Criteria guiding segmentation implementation reviewing the

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Doyle amp Saunders (1985) Market Segmentation and Positioning in Specialized

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Dunning J (2004) Determinants of Foreign Direct Investments globalization

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Erdal F and Tatoglu E (2002) Locational determinants of foreign direct

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Fitzgerald V (2001) Regulatory Investment Incentives

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2009)

Goumlrg H (2004) Attracting foreign direct investment low exit cost may be as

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Henisz W J and Macher JT (2004) Firm- and country-level tradeoffs and

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Holland D and Pain N (1998) The Diffusion Of Innovations In Central And

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on 10th

March 2009)

Morisset Jacques P and Nede P How Tax Policy and Incentives Affect

Foreign Direct Investment A Review(November 30 1999) World Bank Policy

Research Working Paper No 2509 Available at SSRN

httpssrncomabstract=632579

Murphy C M and Soutar G (2005) Individual investor preferences a

segmentation analysis The Journal of Behavioral Finance Vol 6 (1) pp6-14

Ngowi Honesty (2002) ldquoForeign Direct Investment Entry Modes in Tanzania

Types Driving Forces and Implicationsrdquo Tanzanet Journal Vol 3 (1) pp 1-12

Oman C P (2000) Policy Competition for Foreign Direct Investment Paris

OECD Development Centre

153


Peter D R and Ginter J L (1987) ldquoMarket Segmentation Product

Differentiation and Marketing Strategyrdquo Journal of Marketing Vol 51 pp 1-

10

Rajan RS (2004) Measures to Attract FDI Investment Promotion Incentives

and Policy Intervention Economic and Political Weekly

Rajan S R (2005) FDI Trade and the Internationalization of Production in the

Asia-Pacific Region issues and policy conundrums

http20985129132searchq=cachelgTJi3E9Ch0JwwwsppnusedusgHand

lerashx3Fpath3DDataSiteSiteDocumentswp2005wp0501bpdf+Rajan+f

di+tax+incentivesampcd=6amphl=noampct=clnk (accessed on 10th

March 2009)

Reich Gordon amp Edwards (1973) A Theory of Labor Market Segmentation

The American Economic Review Vol 63 (2) pp 359-365

Smith W (1956) Product Differentiation and Market Segmentation as

Alternative Marketing Strategiesrdquo Journal of Marketing pp 3-8

Sullivan MK amp Miller A (1996) Segmenting the Informal Venture Capital

Market Economic Hedonistic and Altruistic Investors Journal of Business


The Boston Consulting Group (2002) Treating Investors Like Customers

httpwwwbcgcompublicationsfilesTreating_Investors_Like_Customers_Jun

2002pdf (accessed on 15th

March 2009)

UNCTAD (1996) Incentives and Foreign Direct Investment Current Studies

Series A No 30 New York and Geneva United Nations

154


UNCTAD (1998) World Investment Report-1998 Trends and Determinantsrdquo

United Nations Publication Switzerland

UNCTAD (2008) World Investment Report-2008 Transnational Corporations

and the Infrastructure Challenge United Nations

UNCTAD (2009) Global FDI in Decline due to the Financial Crises and a

Further Drop Expected UNCTAD Investment Brief Vol 1

httpwwwunctadorgendocswebdiaeia20095_enpdf (accessed on 10th March

2009)

Vietorisz and Harrison (1973) Labor Market Segmentation Positive Feedback

and Divergent Development The American Economic Review Vol 63 (2) pp

366-376

Wei S (1995) Attracting Foreign Direct Investment Has China Reached Its

Potential China Economic Review 6(2) pp 187-99

Wind J (1978) Issues and advances in segmentation research Journal of

Marketing Research pp 317ndash337

Wind Y and Cardozo R N 1974 Industrial Marketing Segmentation

Industrial Marketing Management Vol 3 pp 153-166

Yankelovich D and Meer D (2006) Rediscovering Market Segmentation

Harvard Business Review pp 122-131

155


Young C 2005 Place marketing for FDI in Central and Eastern Europe in

Foreign Direct Investment and Regional Development in East Central Europe

and the Former Soviet Union (Turnock D) Ashgate Publishing British Isles

Zhou Changhui Delios Andrew and Yu Yang Jing Locational Determinants

of Japanese Foreign Direct Investment in China Available at SSRN


123


Introduction

Foreign Direct Investment (FDI) is vital and essential to develop a country

whilst FDI inflows and outflows are likely to fluctuate overtime As such

attracting as well as retaining FDI is therefore utmost importance to a country

irrespective to its state of economic development However this is not an easy

task inasmuch as a growing number of countries compete to obtain FDI in the

global market The pace of global competition to attract FDI is not known but it

is widespread (Oman 2000) As a result countries tend to present themselves

unique to investors using different strategies Amongst these strategies

highlighting the possession of exceptional resources potential opportunities

superior infrastructure and other kinds of incentives offers ie tax holidays

import duty exemption permission to repatriate profit etc are just a few to

name

The competition for FDI may be higher amongst the countries that provide a

same set of incentives to foreign investors National and sub-national

governments are therefore inclined to reappraise investment policies as to

absorb and retain the ldquoright kindrdquo of FDI as described by prior scholarly works

(Dunning 2004) The choice of location for FDI seems to depend on several

factors However it may be difficult to measure or observe the impact of these

factors for investment decisions Traditional examination of FDI decisions tends

to emphasise several factors influence with this regards These forces are

undoubtedly important in explaining foreign investment decisions of

Multinational Enterprises (MNEs) Nevertheless this desk study is not aimed to

expand the existing list of such factors but to use marketing tool benefit

segmentation to conceptualize the FD investorsrsquo market As such our endeavour

124




























125

















in table 3

126





















IInnvveessttoorr


ssttrraatteeggyy



127











(Young 2005)












Segmentation





128






























129





























130





























131







(Ahmad 2003)








1968)

132



Author Year Basis

for segmentation

Context Segments

Grinblatt

amp

Keloharju



General Government


Institutes

Non Financial

Corporations

Foreign Investors

Sullivan amp

Miller



Market

Economic Investors




Domestic

Investors

Institutional

133


Foriegn Countries




FDI Market

Murphy amp

Soutar



The Traders and



characteristics of

the individual

investor

Knowledge of

investment

Financial maturity

Psychological amp

Behavioural

variables


Conceptual Study

Not clear


134



Least Motivated



to go




Lu Liao amp

Yang





and



resource factors

135



















136


Source UNCTAD 2009





environment


FDI





Efficiency-seeking

Resource-seeking

Martin and Salomon

(in Henisz and

Macher 2004)


country


involved


environment


firms

137


Mopp



Skillstechnology

Infrastructure

Access to inputs

Quality of life

Political stability


Experience












trade




138



Real income levels

Skill levels


other resource




Labour standards


Agglomeration

Resource

Port

Policy

Political stability


Economic







139

























FDI

140








Duty drawback









loans


rights



tax holidays




141





UNCTAD

2000

In

Cass









(eg RampD)


other inputs


Cash grants


sites







Tax holidays

142


Tax credits

Grants


Free trade zones


143





Tax Holidays

full

partial

Tax reductions

Reductions in the


Tax reductions

conditional on

reinvestment of

profits




of assets

Cash grants related

to

the value of

assets

invested

numbers

employed or

training costs

Provision of


Provision of

infrastructure

Market

preferences

Monopoly

rights

International

Market

Access

Subsidized

locations

Free trade

zones

Export

Processing

Zones

Special

Economic

Zones

Free Trade

Zones

Privatization



laws

Property Right

Easy and

fast Entry

Low exit

cost

144



profit on exports


specific types of

expenditure



other inputs

145


Discussion





















146


Figure 2























(Research)





147


Step 3 Evaluating




















148


Conclusion














it

References





OECD



149








pp63-86





on 10th

March 2009)



10 pp3-20







150










(5) pp 431-438



2009)










151












March 2009)








Tourism 4th




152











on 10th

March 2009)











153




10








March 2009)











March 2009)



154









2009)



366-376









155








124




























125

















in table 3

126





















IInnvveessttoorr


ssttrraatteeggyy



127











(Young 2005)












Segmentation





128






























129





























130





























131







(Ahmad 2003)








1968)

132



Author Year Basis

for segmentation

Context Segments

Grinblatt

amp

Keloharju



General Government


Institutes

Non Financial

Corporations

Foreign Investors

Sullivan amp

Miller



Market

Economic Investors




Domestic

Investors

Institutional

133


Foriegn Countries




FDI Market

Murphy amp

Soutar



The Traders and



characteristics of

the individual

investor

Knowledge of

investment

Financial maturity

Psychological amp

Behavioural

variables


Conceptual Study

Not clear


134



Least Motivated



to go




Lu Liao amp

Yang





and



resource factors

135



















136


Source UNCTAD 2009





environment


FDI





Efficiency-seeking

Resource-seeking

Martin and Salomon

(in Henisz and

Macher 2004)


country


involved


environment


firms

137


Mopp



Skillstechnology

Infrastructure

Access to inputs

Quality of life

Political stability


Experience












trade




138



Real income levels

Skill levels


other resource




Labour standards


Agglomeration

Resource

Port

Policy

Political stability


Economic







139

























FDI

140








Duty drawback









loans


rights



tax holidays




141





UNCTAD

2000

In

Cass









(eg RampD)


other inputs


Cash grants


sites







Tax holidays

142


Tax credits

Grants


Free trade zones


143





Tax Holidays

full

partial

Tax reductions

Reductions in the


Tax reductions

conditional on

reinvestment of

profits




of assets

Cash grants related

to

the value of

assets

invested

numbers

employed or

training costs

Provision of


Provision of

infrastructure

Market

preferences

Monopoly

rights

International

Market

Access

Subsidized

locations

Free trade

zones

Export

Processing

Zones

Special

Economic

Zones

Free Trade

Zones

Privatization



laws

Property Right

Easy and

fast Entry

Low exit

cost

144



profit on exports


specific types of

expenditure



other inputs

145


Discussion





















146


Figure 2























(Research)





147


Step 3 Evaluating




















148


Conclusion














it

References





OECD



149








pp63-86





on 10th

March 2009)



10 pp3-20







150










(5) pp 431-438



2009)










151












March 2009)








Tourism 4th




152











on 10th

March 2009)











153




10








March 2009)











March 2009)



154









2009)



366-376









155








125

















in table 3

126





















IInnvveessttoorr


ssttrraatteeggyy



127











(Young 2005)












Segmentation





128






























129





























130





























131







(Ahmad 2003)








1968)

132



Author Year Basis

for segmentation

Context Segments

Grinblatt

amp

Keloharju



General Government


Institutes

Non Financial

Corporations

Foreign Investors

Sullivan amp

Miller



Market

Economic Investors




Domestic

Investors

Institutional

133


Foriegn Countries




FDI Market

Murphy amp

Soutar



The Traders and



characteristics of

the individual

investor

Knowledge of

investment

Financial maturity

Psychological amp

Behavioural

variables


Conceptual Study

Not clear


134



Least Motivated



to go




Lu Liao amp

Yang





and



resource factors

135



















136


Source UNCTAD 2009





environment


FDI





Efficiency-seeking

Resource-seeking

Martin and Salomon

(in Henisz and

Macher 2004)


country


involved


environment


firms

137


Mopp



Skillstechnology

Infrastructure

Access to inputs

Quality of life

Political stability


Experience












trade




138



Real income levels

Skill levels


other resource




Labour standards


Agglomeration

Resource

Port

Policy

Political stability


Economic







139

























FDI

140








Duty drawback









loans


rights



tax holidays




141





UNCTAD

2000

In

Cass









(eg RampD)


other inputs


Cash grants


sites







Tax holidays

142


Tax credits

Grants


Free trade zones


143





Tax Holidays

full

partial

Tax reductions

Reductions in the


Tax reductions

conditional on

reinvestment of

profits




of assets

Cash grants related

to

the value of

assets

invested

numbers

employed or

training costs

Provision of


Provision of

infrastructure

Market

preferences

Monopoly

rights

International

Market

Access

Subsidized

locations

Free trade

zones

Export

Processing

Zones

Special

Economic

Zones

Free Trade

Zones

Privatization



laws

Property Right

Easy and

fast Entry

Low exit

cost

144



profit on exports


specific types of

expenditure



other inputs

145


Discussion





















146


Figure 2























(Research)





147


Step 3 Evaluating




















148


Conclusion














it

References





OECD



149








pp63-86





on 10th

March 2009)



10 pp3-20







150










(5) pp 431-438



2009)










151












March 2009)








Tourism 4th




152











on 10th

March 2009)











153




10








March 2009)











March 2009)



154









2009)



366-376









155








126





















IInnvveessttoorr


ssttrraatteeggyy



127











(Young 2005)












Segmentation





128






























129





























130





























131







(Ahmad 2003)








1968)

132



Author Year Basis

for segmentation

Context Segments

Grinblatt

amp

Keloharju



General Government


Institutes

Non Financial

Corporations

Foreign Investors

Sullivan amp

Miller



Market

Economic Investors




Domestic

Investors

Institutional

133


Foriegn Countries




FDI Market

Murphy amp

Soutar



The Traders and



characteristics of

the individual

investor

Knowledge of

investment

Financial maturity

Psychological amp

Behavioural

variables


Conceptual Study

Not clear


134



Least Motivated



to go




Lu Liao amp

Yang





and



resource factors

135



















136


Source UNCTAD 2009





environment


FDI





Efficiency-seeking

Resource-seeking

Martin and Salomon

(in Henisz and

Macher 2004)


country


involved


environment


firms

137


Mopp



Skillstechnology

Infrastructure

Access to inputs

Quality of life

Political stability


Experience












trade




138



Real income levels

Skill levels


other resource




Labour standards


Agglomeration

Resource

Port

Policy

Political stability


Economic







139

























FDI

140








Duty drawback









loans


rights



tax holidays




141





UNCTAD

2000

In

Cass









(eg RampD)


other inputs


Cash grants


sites







Tax holidays

142


Tax credits

Grants


Free trade zones


143





Tax Holidays

full

partial

Tax reductions

Reductions in the


Tax reductions

conditional on

reinvestment of

profits




of assets

Cash grants related

to

the value of

assets

invested

numbers

employed or

training costs

Provision of


Provision of

infrastructure

Market

preferences

Monopoly

rights

International

Market

Access

Subsidized

locations

Free trade

zones

Export

Processing

Zones

Special

Economic

Zones

Free Trade

Zones

Privatization



laws

Property Right

Easy and

fast Entry

Low exit

cost

144



profit on exports


specific types of

expenditure



other inputs

145


Discussion





















146


Figure 2























(Research)





147


Step 3 Evaluating




















148


Conclusion














it

References





OECD



149








pp63-86





on 10th

March 2009)



10 pp3-20







150










(5) pp 431-438



2009)










151












March 2009)








Tourism 4th




152











on 10th

March 2009)











153




10








March 2009)











March 2009)



154









2009)



366-376









155








127











(Young 2005)












Segmentation





128






























129





























130





























131







(Ahmad 2003)








1968)

132



Author Year Basis

for segmentation

Context Segments

Grinblatt

amp

Keloharju



General Government


Institutes

Non Financial

Corporations

Foreign Investors

Sullivan amp

Miller



Market

Economic Investors




Domestic

Investors

Institutional

133


Foriegn Countries




FDI Market

Murphy amp

Soutar



The Traders and



characteristics of

the individual

investor

Knowledge of

investment

Financial maturity

Psychological amp

Behavioural

variables


Conceptual Study

Not clear


134



Least Motivated



to go




Lu Liao amp

Yang





and



resource factors

135



















136


Source UNCTAD 2009





environment


FDI





Efficiency-seeking

Resource-seeking

Martin and Salomon

(in Henisz and

Macher 2004)


country


involved


environment


firms

137


Mopp



Skillstechnology

Infrastructure

Access to inputs

Quality of life

Political stability


Experience












trade




138



Real income levels

Skill levels


other resource




Labour standards


Agglomeration

Resource

Port

Policy

Political stability


Economic







139

























FDI

140








Duty drawback









loans


rights



tax holidays




141





UNCTAD

2000

In

Cass









(eg RampD)


other inputs


Cash grants


sites







Tax holidays

142


Tax credits

Grants


Free trade zones


143





Tax Holidays

full

partial

Tax reductions

Reductions in the


Tax reductions

conditional on

reinvestment of

profits




of assets

Cash grants related

to

the value of

assets

invested

numbers

employed or

training costs

Provision of


Provision of

infrastructure

Market

preferences

Monopoly

rights

International

Market

Access

Subsidized

locations

Free trade

zones

Export

Processing

Zones

Special

Economic

Zones

Free Trade

Zones

Privatization



laws

Property Right

Easy and

fast Entry

Low exit

cost

144



profit on exports


specific types of

expenditure



other inputs

145


Discussion





















146


Figure 2























(Research)





147


Step 3 Evaluating




















148


Conclusion














it

References





OECD



149








pp63-86





on 10th

March 2009)



10 pp3-20







150










(5) pp 431-438



2009)










151












March 2009)








Tourism 4th




152











on 10th

March 2009)











153




10








March 2009)











March 2009)



154









2009)



366-376









155








128






























129





























130





























131







(Ahmad 2003)








1968)

132



Author Year Basis

for segmentation

Context Segments

Grinblatt

amp

Keloharju



General Government


Institutes

Non Financial

Corporations

Foreign Investors

Sullivan amp

Miller



Market

Economic Investors




Domestic

Investors

Institutional

133


Foriegn Countries




FDI Market

Murphy amp

Soutar



The Traders and



characteristics of

the individual

investor

Knowledge of

investment

Financial maturity

Psychological amp

Behavioural

variables


Conceptual Study

Not clear


134



Least Motivated



to go




Lu Liao amp

Yang





and



resource factors

135



















136


Source UNCTAD 2009





environment


FDI





Efficiency-seeking

Resource-seeking

Martin and Salomon

(in Henisz and

Macher 2004)


country


involved


environment


firms

137


Mopp



Skillstechnology

Infrastructure

Access to inputs

Quality of life

Political stability


Experience












trade




138



Real income levels

Skill levels


other resource




Labour standards


Agglomeration

Resource

Port

Policy

Political stability


Economic







139

























FDI

140








Duty drawback









loans


rights



tax holidays




141





UNCTAD

2000

In

Cass









(eg RampD)


other inputs


Cash grants


sites







Tax holidays

142


Tax credits

Grants


Free trade zones


143





Tax Holidays

full

partial

Tax reductions

Reductions in the


Tax reductions

conditional on

reinvestment of

profits




of assets

Cash grants related

to

the value of

assets

invested

numbers

employed or

training costs

Provision of


Provision of

infrastructure

Market

preferences

Monopoly

rights

International

Market

Access

Subsidized

locations

Free trade

zones

Export

Processing

Zones

Special

Economic

Zones

Free Trade

Zones

Privatization



laws

Property Right

Easy and

fast Entry

Low exit

cost

144



profit on exports


specific types of

expenditure



other inputs

145


Discussion





















146


Figure 2























(Research)





147


Step 3 Evaluating




















148


Conclusion














it

References





OECD



149








pp63-86





on 10th

March 2009)



10 pp3-20







150










(5) pp 431-438



2009)










151












March 2009)








Tourism 4th




152











on 10th

March 2009)











153




10








March 2009)











March 2009)



154









2009)



366-376









155








129





























130





























131







(Ahmad 2003)








1968)

132



Author Year Basis

for segmentation

Context Segments

Grinblatt

amp

Keloharju



General Government


Institutes

Non Financial

Corporations

Foreign Investors

Sullivan amp

Miller



Market

Economic Investors




Domestic

Investors

Institutional

133


Foriegn Countries




FDI Market

Murphy amp

Soutar



The Traders and



characteristics of

the individual

investor

Knowledge of

investment

Financial maturity

Psychological amp

Behavioural

variables


Conceptual Study

Not clear


134



Least Motivated



to go




Lu Liao amp

Yang





and



resource factors

135



















136


Source UNCTAD 2009





environment


FDI





Efficiency-seeking

Resource-seeking

Martin and Salomon

(in Henisz and

Macher 2004)


country


involved


environment


firms

137


Mopp



Skillstechnology

Infrastructure

Access to inputs

Quality of life

Political stability


Experience












trade




138



Real income levels

Skill levels


other resource




Labour standards


Agglomeration

Resource

Port

Policy

Political stability


Economic







139

























FDI

140








Duty drawback









loans


rights



tax holidays




141





UNCTAD

2000

In

Cass









(eg RampD)


other inputs


Cash grants


sites







Tax holidays

142


Tax credits

Grants


Free trade zones


143





Tax Holidays

full

partial

Tax reductions

Reductions in the


Tax reductions

conditional on

reinvestment of

profits




of assets

Cash grants related

to

the value of

assets

invested

numbers

employed or

training costs

Provision of


Provision of

infrastructure

Market

preferences

Monopoly

rights

International

Market

Access

Subsidized

locations

Free trade

zones

Export

Processing

Zones

Special

Economic

Zones

Free Trade

Zones

Privatization



laws

Property Right

Easy and

fast Entry

Low exit

cost

144



profit on exports


specific types of

expenditure



other inputs

145


Discussion





















146


Figure 2























(Research)





147


Step 3 Evaluating




















148


Conclusion














it

References





OECD



149








pp63-86





on 10th

March 2009)



10 pp3-20







150










(5) pp 431-438



2009)










151












March 2009)








Tourism 4th




152











on 10th

March 2009)











153




10








March 2009)











March 2009)



154









2009)



366-376









155








130





























131







(Ahmad 2003)








1968)

132



Author Year Basis

for segmentation

Context Segments

Grinblatt

amp

Keloharju



General Government


Institutes

Non Financial

Corporations

Foreign Investors

Sullivan amp

Miller



Market

Economic Investors




Domestic

Investors

Institutional

133


Foriegn Countries




FDI Market

Murphy amp

Soutar



The Traders and



characteristics of

the individual

investor

Knowledge of

investment

Financial maturity

Psychological amp

Behavioural

variables


Conceptual Study

Not clear


134



Least Motivated



to go




Lu Liao amp

Yang





and



resource factors

135



















136


Source UNCTAD 2009





environment


FDI





Efficiency-seeking

Resource-seeking

Martin and Salomon

(in Henisz and

Macher 2004)


country


involved


environment


firms

137


Mopp



Skillstechnology

Infrastructure

Access to inputs

Quality of life

Political stability


Experience












trade




138



Real income levels

Skill levels


other resource




Labour standards


Agglomeration

Resource

Port

Policy

Political stability


Economic







139

























FDI

140








Duty drawback









loans


rights



tax holidays




141





UNCTAD

2000

In

Cass









(eg RampD)


other inputs


Cash grants


sites







Tax holidays

142


Tax credits

Grants


Free trade zones


143





Tax Holidays

full

partial

Tax reductions

Reductions in the


Tax reductions

conditional on

reinvestment of

profits




of assets

Cash grants related

to

the value of

assets

invested

numbers

employed or

training costs

Provision of


Provision of

infrastructure

Market

preferences

Monopoly

rights

International

Market

Access

Subsidized

locations

Free trade

zones

Export

Processing

Zones

Special

Economic

Zones

Free Trade

Zones

Privatization



laws

Property Right

Easy and

fast Entry

Low exit

cost

144



profit on exports


specific types of

expenditure



other inputs

145


Discussion





















146


Figure 2























(Research)





147


Step 3 Evaluating




















148


Conclusion














it

References





OECD



149








pp63-86





on 10th

March 2009)



10 pp3-20







150










(5) pp 431-438



2009)










151












March 2009)








Tourism 4th




152











on 10th

March 2009)











153




10








March 2009)











March 2009)



154









2009)



366-376









155








131







(Ahmad 2003)








1968)

132



Author Year Basis

for segmentation

Context Segments

Grinblatt

amp

Keloharju



General Government


Institutes

Non Financial

Corporations

Foreign Investors

Sullivan amp

Miller



Market

Economic Investors




Domestic

Investors

Institutional

133


Foriegn Countries




FDI Market

Murphy amp

Soutar



The Traders and



characteristics of

the individual

investor

Knowledge of

investment

Financial maturity

Psychological amp

Behavioural

variables


Conceptual Study

Not clear


134



Least Motivated



to go




Lu Liao amp

Yang





and



resource factors

135



















136


Source UNCTAD 2009





environment


FDI





Efficiency-seeking

Resource-seeking

Martin and Salomon

(in Henisz and

Macher 2004)


country


involved


environment


firms

137


Mopp



Skillstechnology

Infrastructure

Access to inputs

Quality of life

Political stability


Experience












trade




138



Real income levels

Skill levels


other resource




Labour standards


Agglomeration

Resource

Port

Policy

Political stability


Economic







139

























FDI

140








Duty drawback









loans


rights



tax holidays




141





UNCTAD

2000

In

Cass









(eg RampD)


other inputs


Cash grants


sites







Tax holidays

142


Tax credits

Grants


Free trade zones


143





Tax Holidays

full

partial

Tax reductions

Reductions in the


Tax reductions

conditional on

reinvestment of

profits




of assets

Cash grants related

to

the value of

assets

invested

numbers

employed or

training costs

Provision of


Provision of

infrastructure

Market

preferences

Monopoly

rights

International

Market

Access

Subsidized

locations

Free trade

zones

Export

Processing

Zones

Special

Economic

Zones

Free Trade

Zones

Privatization



laws

Property Right

Easy and

fast Entry

Low exit

cost

144



profit on exports


specific types of

expenditure



other inputs

145


Discussion





















146


Figure 2























(Research)





147


Step 3 Evaluating




















148


Conclusion














it

References





OECD



149








pp63-86





on 10th

March 2009)



10 pp3-20







150










(5) pp 431-438



2009)










151












March 2009)








Tourism 4th




152











on 10th

March 2009)











153




10








March 2009)











March 2009)



154









2009)



366-376









155








132



Author Year Basis

for segmentation

Context Segments

Grinblatt

amp

Keloharju



General Government


Institutes

Non Financial

Corporations

Foreign Investors

Sullivan amp

Miller



Market

Economic Investors




Domestic

Investors

Institutional

133


Foriegn Countries




FDI Market

Murphy amp

Soutar



The Traders and



characteristics of

the individual

investor

Knowledge of

investment

Financial maturity

Psychological amp

Behavioural

variables


Conceptual Study

Not clear


134



Least Motivated



to go




Lu Liao amp

Yang





and



resource factors

135



















136


Source UNCTAD 2009





environment


FDI





Efficiency-seeking

Resource-seeking

Martin and Salomon

(in Henisz and

Macher 2004)


country


involved


environment


firms

137


Mopp



Skillstechnology

Infrastructure

Access to inputs

Quality of life

Political stability


Experience












trade




138



Real income levels

Skill levels


other resource




Labour standards


Agglomeration

Resource

Port

Policy

Political stability


Economic







139

























FDI

140








Duty drawback









loans


rights



tax holidays




141





UNCTAD

2000

In

Cass









(eg RampD)


other inputs


Cash grants


sites







Tax holidays

142


Tax credits

Grants


Free trade zones


143





Tax Holidays

full

partial

Tax reductions

Reductions in the


Tax reductions

conditional on

reinvestment of

profits




of assets

Cash grants related

to

the value of

assets

invested

numbers

employed or

training costs

Provision of


Provision of

infrastructure

Market

preferences

Monopoly

rights

International

Market

Access

Subsidized

locations

Free trade

zones

Export

Processing

Zones

Special

Economic

Zones

Free Trade

Zones

Privatization



laws

Property Right

Easy and

fast Entry

Low exit

cost

144



profit on exports


specific types of

expenditure



other inputs

145


Discussion





















146


Figure 2























(Research)





147


Step 3 Evaluating




















148


Conclusion














it

References





OECD



149








pp63-86





on 10th

March 2009)



10 pp3-20







150










(5) pp 431-438



2009)










151












March 2009)








Tourism 4th




152











on 10th

March 2009)











153




10








March 2009)











March 2009)



154









2009)



366-376









155








133


Foriegn Countries




FDI Market

Murphy amp

Soutar



The Traders and



characteristics of

the individual

investor

Knowledge of

investment

Financial maturity

Psychological amp

Behavioural

variables


Conceptual Study

Not clear


134



Least Motivated



to go




Lu Liao amp

Yang





and



resource factors

135



















136


Source UNCTAD 2009





environment


FDI





Efficiency-seeking

Resource-seeking

Martin and Salomon

(in Henisz and

Macher 2004)


country


involved


environment


firms

137


Mopp



Skillstechnology

Infrastructure

Access to inputs

Quality of life

Political stability


Experience












trade




138



Real income levels

Skill levels


other resource




Labour standards


Agglomeration

Resource

Port

Policy

Political stability


Economic







139

























FDI

140








Duty drawback









loans


rights



tax holidays




141





UNCTAD

2000

In

Cass









(eg RampD)


other inputs


Cash grants


sites







Tax holidays

142


Tax credits

Grants


Free trade zones


143





Tax Holidays

full

partial

Tax reductions

Reductions in the


Tax reductions

conditional on

reinvestment of

profits




of assets

Cash grants related

to

the value of

assets

invested

numbers

employed or

training costs

Provision of


Provision of

infrastructure

Market

preferences

Monopoly

rights

International

Market

Access

Subsidized

locations

Free trade

zones

Export

Processing

Zones

Special

Economic

Zones

Free Trade

Zones

Privatization



laws

Property Right

Easy and

fast Entry

Low exit

cost

144



profit on exports


specific types of

expenditure



other inputs

145


Discussion





















146


Figure 2























(Research)





147


Step 3 Evaluating




















148


Conclusion














it

References





OECD



149








pp63-86





on 10th

March 2009)



10 pp3-20







150










(5) pp 431-438



2009)










151












March 2009)








Tourism 4th




152











on 10th

March 2009)











153




10








March 2009)











March 2009)



154









2009)



366-376









155








134



Least Motivated



to go




Lu Liao amp

Yang





and



resource factors

135



















136


Source UNCTAD 2009





environment


FDI





Efficiency-seeking

Resource-seeking

Martin and Salomon

(in Henisz and

Macher 2004)


country


involved


environment


firms

137


Mopp



Skillstechnology

Infrastructure

Access to inputs

Quality of life

Political stability


Experience












trade




138



Real income levels

Skill levels


other resource




Labour standards


Agglomeration

Resource

Port

Policy

Political stability


Economic







139

























FDI

140








Duty drawback









loans


rights



tax holidays




141





UNCTAD

2000

In

Cass









(eg RampD)


other inputs


Cash grants


sites







Tax holidays

142


Tax credits

Grants


Free trade zones


143





Tax Holidays

full

partial

Tax reductions

Reductions in the


Tax reductions

conditional on

reinvestment of

profits




of assets

Cash grants related

to

the value of

assets

invested

numbers

employed or

training costs

Provision of


Provision of

infrastructure

Market

preferences

Monopoly

rights

International

Market

Access

Subsidized

locations

Free trade

zones

Export

Processing

Zones

Special

Economic

Zones

Free Trade

Zones

Privatization



laws

Property Right

Easy and

fast Entry

Low exit

cost

144



profit on exports


specific types of

expenditure



other inputs

145


Discussion





















146


Figure 2























(Research)





147


Step 3 Evaluating




















148


Conclusion














it

References





OECD



149








pp63-86





on 10th

March 2009)



10 pp3-20







150










(5) pp 431-438



2009)










151












March 2009)








Tourism 4th




152











on 10th

March 2009)











153




10








March 2009)











March 2009)



154









2009)



366-376









155








135



















136


Source UNCTAD 2009





environment


FDI





Efficiency-seeking

Resource-seeking

Martin and Salomon

(in Henisz and

Macher 2004)


country


involved


environment


firms

137


Mopp



Skillstechnology

Infrastructure

Access to inputs

Quality of life

Political stability


Experience












trade




138



Real income levels

Skill levels


other resource




Labour standards


Agglomeration

Resource

Port

Policy

Political stability


Economic







139

























FDI

140








Duty drawback









loans


rights



tax holidays




141





UNCTAD

2000

In

Cass









(eg RampD)


other inputs


Cash grants


sites







Tax holidays

142


Tax credits

Grants


Free trade zones


143





Tax Holidays

full

partial

Tax reductions

Reductions in the


Tax reductions

conditional on

reinvestment of

profits




of assets

Cash grants related

to

the value of

assets

invested

numbers

employed or

training costs

Provision of


Provision of

infrastructure

Market

preferences

Monopoly

rights

International

Market

Access

Subsidized

locations

Free trade

zones

Export

Processing

Zones

Special

Economic

Zones

Free Trade

Zones

Privatization



laws

Property Right

Easy and

fast Entry

Low exit

cost

144



profit on exports


specific types of

expenditure



other inputs

145


Discussion





















146


Figure 2























(Research)





147


Step 3 Evaluating




















148


Conclusion














it

References





OECD



149








pp63-86





on 10th

March 2009)



10 pp3-20







150










(5) pp 431-438



2009)










151












March 2009)








Tourism 4th




152











on 10th

March 2009)











153




10








March 2009)











March 2009)



154









2009)



366-376









155








136


Source UNCTAD 2009





environment


FDI





Efficiency-seeking

Resource-seeking

Martin and Salomon

(in Henisz and

Macher 2004)


country


involved


environment


firms

137


Mopp



Skillstechnology

Infrastructure

Access to inputs

Quality of life

Political stability


Experience












trade




138



Real income levels

Skill levels


other resource




Labour standards


Agglomeration

Resource

Port

Policy

Political stability


Economic







139

























FDI

140








Duty drawback









loans


rights



tax holidays




141





UNCTAD

2000

In

Cass









(eg RampD)


other inputs


Cash grants


sites







Tax holidays

142


Tax credits

Grants


Free trade zones


143





Tax Holidays

full

partial

Tax reductions

Reductions in the


Tax reductions

conditional on

reinvestment of

profits




of assets

Cash grants related

to

the value of

assets

invested

numbers

employed or

training costs

Provision of


Provision of

infrastructure

Market

preferences

Monopoly

rights

International

Market

Access

Subsidized

locations

Free trade

zones

Export

Processing

Zones

Special

Economic

Zones

Free Trade

Zones

Privatization



laws

Property Right

Easy and

fast Entry

Low exit

cost

144



profit on exports


specific types of

expenditure



other inputs

145


Discussion





















146


Figure 2























(Research)





147


Step 3 Evaluating




















148


Conclusion














it

References





OECD



149








pp63-86





on 10th

March 2009)



10 pp3-20







150










(5) pp 431-438



2009)










151












March 2009)








Tourism 4th




152











on 10th

March 2009)











153




10








March 2009)











March 2009)



154









2009)



366-376









155








137


Mopp



Skillstechnology

Infrastructure

Access to inputs

Quality of life

Political stability


Experience












trade




138



Real income levels

Skill levels


other resource




Labour standards


Agglomeration

Resource

Port

Policy

Political stability


Economic







139

























FDI

140








Duty drawback









loans


rights



tax holidays




141





UNCTAD

2000

In

Cass









(eg RampD)


other inputs


Cash grants


sites







Tax holidays

142


Tax credits

Grants


Free trade zones


143





Tax Holidays

full

partial

Tax reductions

Reductions in the


Tax reductions

conditional on

reinvestment of

profits




of assets

Cash grants related

to

the value of

assets

invested

numbers

employed or

training costs

Provision of


Provision of

infrastructure

Market

preferences

Monopoly

rights

International

Market

Access

Subsidized

locations

Free trade

zones

Export

Processing

Zones

Special

Economic

Zones

Free Trade

Zones

Privatization



laws

Property Right

Easy and

fast Entry

Low exit

cost

144



profit on exports


specific types of

expenditure



other inputs

145


Discussion





















146


Figure 2























(Research)





147


Step 3 Evaluating




















148


Conclusion














it

References





OECD



149








pp63-86





on 10th

March 2009)



10 pp3-20







150










(5) pp 431-438



2009)










151












March 2009)








Tourism 4th




152











on 10th

March 2009)











153




10








March 2009)











March 2009)



154









2009)



366-376









155








138



Real income levels

Skill levels


other resource




Labour standards


Agglomeration

Resource

Port

Policy

Political stability


Economic







139

























FDI

140








Duty drawback









loans


rights



tax holidays




141





UNCTAD

2000

In

Cass









(eg RampD)


other inputs


Cash grants


sites







Tax holidays

142


Tax credits

Grants


Free trade zones


143





Tax Holidays

full

partial

Tax reductions

Reductions in the


Tax reductions

conditional on

reinvestment of

profits




of assets

Cash grants related

to

the value of

assets

invested

numbers

employed or

training costs

Provision of


Provision of

infrastructure

Market

preferences

Monopoly

rights

International

Market

Access

Subsidized

locations

Free trade

zones

Export

Processing

Zones

Special

Economic

Zones

Free Trade

Zones

Privatization



laws

Property Right

Easy and

fast Entry

Low exit

cost

144



profit on exports


specific types of

expenditure



other inputs

145


Discussion





















146


Figure 2























(Research)





147


Step 3 Evaluating




















148


Conclusion














it

References





OECD



149








pp63-86





on 10th

March 2009)



10 pp3-20







150










(5) pp 431-438



2009)










151












March 2009)








Tourism 4th




152











on 10th

March 2009)











153




10








March 2009)











March 2009)



154









2009)



366-376









155








139

























FDI

140








Duty drawback









loans


rights



tax holidays




141





UNCTAD

2000

In

Cass









(eg RampD)


other inputs


Cash grants


sites







Tax holidays

142


Tax credits

Grants


Free trade zones


143





Tax Holidays

full

partial

Tax reductions

Reductions in the


Tax reductions

conditional on

reinvestment of

profits




of assets

Cash grants related

to

the value of

assets

invested

numbers

employed or

training costs

Provision of


Provision of

infrastructure

Market

preferences

Monopoly

rights

International

Market

Access

Subsidized

locations

Free trade

zones

Export

Processing

Zones

Special

Economic

Zones

Free Trade

Zones

Privatization



laws

Property Right

Easy and

fast Entry

Low exit

cost

144



profit on exports


specific types of

expenditure



other inputs

145


Discussion





















146


Figure 2























(Research)





147


Step 3 Evaluating




















148


Conclusion














it

References





OECD



149








pp63-86





on 10th

March 2009)



10 pp3-20







150










(5) pp 431-438



2009)










151












March 2009)








Tourism 4th




152











on 10th

March 2009)











153




10








March 2009)











March 2009)



154









2009)



366-376









155








140








Duty drawback









loans


rights



tax holidays




141





UNCTAD

2000

In

Cass









(eg RampD)


other inputs


Cash grants


sites







Tax holidays

142


Tax credits

Grants


Free trade zones


143





Tax Holidays

full

partial

Tax reductions

Reductions in the


Tax reductions

conditional on

reinvestment of

profits




of assets

Cash grants related

to

the value of

assets

invested

numbers

employed or

training costs

Provision of


Provision of

infrastructure

Market

preferences

Monopoly

rights

International

Market

Access

Subsidized

locations

Free trade

zones

Export

Processing

Zones

Special

Economic

Zones

Free Trade

Zones

Privatization



laws

Property Right

Easy and

fast Entry

Low exit

cost

144



profit on exports


specific types of

expenditure



other inputs

145


Discussion





















146


Figure 2























(Research)





147


Step 3 Evaluating




















148


Conclusion














it

References





OECD



149








pp63-86





on 10th

March 2009)



10 pp3-20







150










(5) pp 431-438



2009)










151












March 2009)








Tourism 4th




152











on 10th

March 2009)











153




10








March 2009)











March 2009)



154









2009)



366-376









155








141





UNCTAD

2000

In

Cass









(eg RampD)


other inputs


Cash grants


sites







Tax holidays

142


Tax credits

Grants


Free trade zones


143





Tax Holidays

full

partial

Tax reductions

Reductions in the


Tax reductions

conditional on

reinvestment of

profits




of assets

Cash grants related

to

the value of

assets

invested

numbers

employed or

training costs

Provision of


Provision of

infrastructure

Market

preferences

Monopoly

rights

International

Market

Access

Subsidized

locations

Free trade

zones

Export

Processing

Zones

Special

Economic

Zones

Free Trade

Zones

Privatization



laws

Property Right

Easy and

fast Entry

Low exit

cost

144



profit on exports


specific types of

expenditure



other inputs

145


Discussion





















146


Figure 2























(Research)





147


Step 3 Evaluating




















148


Conclusion














it

References





OECD



149








pp63-86





on 10th

March 2009)



10 pp3-20







150










(5) pp 431-438



2009)










151












March 2009)








Tourism 4th




152











on 10th

March 2009)











153




10








March 2009)











March 2009)



154









2009)



366-376









155








142


Tax credits

Grants


Free trade zones


143





Tax Holidays

full

partial

Tax reductions

Reductions in the


Tax reductions

conditional on

reinvestment of

profits




of assets

Cash grants related

to

the value of

assets

invested

numbers

employed or

training costs

Provision of


Provision of

infrastructure

Market

preferences

Monopoly

rights

International

Market

Access

Subsidized

locations

Free trade

zones

Export

Processing

Zones

Special

Economic

Zones

Free Trade

Zones

Privatization



laws

Property Right

Easy and

fast Entry

Low exit

cost

144



profit on exports


specific types of

expenditure



other inputs

145


Discussion





















146


Figure 2























(Research)





147


Step 3 Evaluating




















148


Conclusion














it

References





OECD



149








pp63-86





on 10th

March 2009)



10 pp3-20







150










(5) pp 431-438



2009)










151












March 2009)








Tourism 4th




152











on 10th

March 2009)











153




10








March 2009)











March 2009)



154









2009)



366-376









155








143





Tax Holidays

full

partial

Tax reductions

Reductions in the


Tax reductions

conditional on

reinvestment of

profits




of assets

Cash grants related

to

the value of

assets

invested

numbers

employed or

training costs

Provision of


Provision of

infrastructure

Market

preferences

Monopoly

rights

International

Market

Access

Subsidized

locations

Free trade

zones

Export

Processing

Zones

Special

Economic

Zones

Free Trade

Zones

Privatization



laws

Property Right

Easy and

fast Entry

Low exit

cost

144



profit on exports


specific types of

expenditure



other inputs

145


Discussion





















146


Figure 2























(Research)





147


Step 3 Evaluating




















148


Conclusion














it

References





OECD



149








pp63-86





on 10th

March 2009)



10 pp3-20







150










(5) pp 431-438



2009)










151












March 2009)








Tourism 4th




152











on 10th

March 2009)











153




10








March 2009)











March 2009)



154









2009)



366-376









155








144



profit on exports


specific types of

expenditure



other inputs

145


Discussion





















146


Figure 2























(Research)





147


Step 3 Evaluating




















148


Conclusion














it

References





OECD



149








pp63-86





on 10th

March 2009)



10 pp3-20







150










(5) pp 431-438



2009)










151












March 2009)








Tourism 4th




152











on 10th

March 2009)











153




10








March 2009)











March 2009)



154









2009)



366-376









155








145


Discussion





















146


Figure 2























(Research)





147


Step 3 Evaluating




















148


Conclusion














it

References





OECD



149








pp63-86





on 10th

March 2009)



10 pp3-20







150










(5) pp 431-438



2009)










151












March 2009)








Tourism 4th




152











on 10th

March 2009)











153




10








March 2009)











March 2009)



154









2009)



366-376









155








146


Figure 2























(Research)





147


Step 3 Evaluating




















148


Conclusion














it

References





OECD



149








pp63-86





on 10th

March 2009)



10 pp3-20







150










(5) pp 431-438



2009)










151












March 2009)








Tourism 4th




152











on 10th

March 2009)











153




10








March 2009)











March 2009)



154









2009)



366-376









155








147


Step 3 Evaluating




















148


Conclusion














it

References





OECD



149








pp63-86





on 10th

March 2009)



10 pp3-20







150










(5) pp 431-438



2009)










151












March 2009)








Tourism 4th




152











on 10th

March 2009)











153




10








March 2009)











March 2009)



154









2009)



366-376









155








148


Conclusion














it

References





OECD



149








pp63-86





on 10th

March 2009)



10 pp3-20







150










(5) pp 431-438



2009)










151












March 2009)








Tourism 4th




152











on 10th

March 2009)











153




10








March 2009)











March 2009)



154









2009)



366-376









155








149








pp63-86





on 10th

March 2009)



10 pp3-20







150










(5) pp 431-438



2009)










151












March 2009)








Tourism 4th




152











on 10th

March 2009)











153




10








March 2009)











March 2009)



154









2009)



366-376









155








150










(5) pp 431-438



2009)










151












March 2009)








Tourism 4th




152











on 10th

March 2009)











153




10








March 2009)











March 2009)



154









2009)



366-376









155








151












March 2009)








Tourism 4th




152











on 10th

March 2009)











153




10








March 2009)











March 2009)



154









2009)



366-376









155








152











on 10th

March 2009)











153




10








March 2009)











March 2009)



154









2009)



366-376









155








153




10








March 2009)











March 2009)



154









2009)



366-376









155








154









2009)



366-376









155








155








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