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BRIEF June 8, 2021

Firm Dynamics


Investment climate diagnostics serve a variety of purposes.  They help assess constraints to private sector competitiveness, identify barriers to firm entry, growth, and integration with the world economy, or analyze effects of investment climate policies on firm performance and job creation.  Participants in this session will be trained on the latest innovations, user-friendly tools, and analytical approaches to answering questions such as:

  • How can I use the latest automated tools to conduct investment climate diagnostics and leverage them for CPSD and other corporate-level diagnostics?
  • How do I analyze private investment effects on job creation, poverty alleviation, and participation in global value chains?
  • Which   sectors   of   the   economy   hold   the   greatest   potential   for   job creation, economic diversification, or for tackling the challenge of climate change?

The Firm Dynamics  team produces new research, develops analytical tools, and implements novel diagnostic approaches in client countries with the objective of delivering on its three-prong agenda of:

  • Developing diagnostic and analytical tools to better target, design, and measure investment climate policy interventions in World Bank Group operations;
  • Advancing thought leadership and global advocacy through filling gaps in data and knowledge;
  • Fostering outreach and partnerships with research teams across the World Bank Group, international organizations, development partners, think tanks, and academia.

Analytical and Diagnostic Tools

Investment Competitiveness Diagnostics

The team leverages a variety of tools and methodologies to identify constrains and solutions to countries’ enhanced competitiveness for investment.  The key questions they seek to answer include:

  • What are the main economy-wide and sector-specific barriers to investment competitiveness?
  • What constraints countries’ growth and competitiveness?
  • What are the likely macro- and micro-economic effects of specific policy reforms?
  • What factors and country characteristics influence companies’ investment decisions?

Global Investment Competitiveness Survey Database
(links here and here) provides data on the drivers of investment, experiences of multinational corporations, and perceptions of foreign business executives in developing countries.

Global Tax Incentives Database provides annual panel data on the existence of various types of tax incentives across 160 countries and 22 sectors.

Global Regulatory Risk Database provides cross-country data on the content of domestic and international laws with a focus on regulatory transparency, investment protection, and investor access to recourse mechanisms.

Publication Series

Global Investment Competitiveness Report is World Bank’s flagship publication series on foreign direct investment providing novel analytical insights, empirical evidence, and actionable recommendations for governments seeking to leverage FDI for development.

Foreign Investor Pulse Surveys provide quarterly insight into the impacts of the pandemic on the affiliates of multinational enterprises, as well as how their plans and strategies are evolving.

FDI Watch Reports provide quarterly global and regional data on FDI flows and intentions, investor perceptions, and policy developments.

Investment Perspective on Global Value Chains Report examines the role of FDI in global value chains.

View all Investment Climate Publications >>


Asya Akhlaque

Asya Akhlaque, Practice Manager, Investment Climate