Investment plays a crucial role in the growth and development of any nation. Unfortunately, Bolivia faces a challenge with a low level of net foreign direct investment (FDI) compared to neighboring countries. According to data from the Ministry of Economics and Public Finances (MEFP), Bolivia has attracted minimal foreign direct investment in recent years. In response to this situation, the Bolivian government has resorted to public spending to stabilize the Gross Domestic Product. However, this approach is becoming increasingly difficult with time. To improve the economic landscape, it is essential to promote and attract both domestic and foreign investment. This study employs a mixed-methods approach, combining quantitative and qualitative research. A literature review explores the underlying causes of Bolivias investment challenges, while existing data is analyzed to examine the trends in FDI within the country. Additionally, interviews with experts have been conducted to identify potential strategies to enhance investment opportunities. The findings indicate that it is crucial to provide stability and security for investors. Contracts should incorporate specific clauses that safeguard against nationalization. Foreign investors need to feel assured and confident that their companies will not be subject to nationalization, potentially supported by international law. Furthermore, the tax system must distinguish between domestic and foreign entities. Experts suggest that offering greater incentives to foreign investors, such as reducing corporate tax rates, could enable these companies to enhance their profitability.
TICONA et al. (Thu,) studied this question.