FDI Perspective No. 114: “Government-held equity in foreign investment projects: Good for host countries?,” by Louis T. Wells.

Host governments have often sought some equity in mining and other foreign investment projects, but as shareholders they have rarely gained what they anticipated. Only in special cases might the benefits to governments outweigh the risks and often unanticipated costs governments encounter.

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Authors

Louis T. Wells

Herbert F. Johnson Professor Emeritus, Harvard Business School