Abstract
Governments throughout the developing world are widely viewed to be liberalizing their foreign investment regimes. This paper reports on a study that assesses the progress governments have made in implementing new investment regimes by comparing changes in the policies of governments toward foreign investment with changes in the structures and processes they use to screen foreign investment. The data suggest that the implementation of new investment regimes has been slowed by political compromises among units within governments. The paper points to the critical importance of strong central administrations that can muster the will to push liberalization efforts and provides recommendations on how governments can implement effectively policies of investment liberalization.
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