They Do Not Dance Alone

Chile is attractive to foreign investors, but the country's advantages are not a free pass for unlimited tax collection.

Abstract

Perhaps the most rigorous global assessment of the investment climate across countries is the World Bank's Investment Across Borders study, carried out this year. It covers 87 countries and identifies those sectors in which access is restricted for nonresident investors. It also quantifies bureaucratic barriers, the strength of the judicial system, and the arbitration of disputes. The multilateral institution produces this information to inform the decisions of foreign investors seeking transparency and predictability. The data also help governments adjust their incentives to best practices in order to remain competitive. Continue reading...