Investment incentives (subsidies designed to affect the location of investment) are a pervasive feature of global competition for foreign direct investment. This Perspective analyzes what is known about the extent and cost of incentives used as well as the potential efficiency, equity, and...

The use of subsidies to attract investment costs government billions of dollars annually, making regulation urgent. While comprehensive limitations such as the EU's are not likely soon, we should improve transparency, have major stakeholders promote incentive rules within preferential trade...