Capital Productivity Gaps in Israel: Evaluating the Law for the Encouragement of Capital Investments
The Law for the Encouragement of Capital Investments (LECI) in Israel was enacted in 1959 as a means to foster economic growth and development by attracting foreign direct investment (FDI).
Over the years, the conditions affecting FDI and the way multinational firms operate have changed. And while LECI has been amended numerous times since its inception, with tax subsidies and grants to targeted companies rising steadily, the changing global landscape suggests further research is necessary to ensure the best possible outcomes for Israel’s economy. This research attempts to be a first step in that direction.