Contents -- Figures and Tables -- Foreword -- Tax Holidays to Attract Foreign Direct Investment -- Introduction -- The First Experiment: Eliminating Tax Holidays -- Estimating the Costs of Incentives -- The Pressures for New Tax Holidays -- The Second Experiment: Discretionary Allocation of Incentives -- Coda -- Conclusions -- Notes -- References -- How Tax Policy and Incentives Affect Foreign Direct Investment -- Introduction -- Early Literature: The Aggregate Approach -- New Evidence from the Mid- 1980s: A Search for Details -- Issues in Today's Global World -- Concluding Remarks and Next Steps -- Notes -- References.