Investment attraction is the strategy by which an economy brings new money into its communities to expand their economic base. An economy is driven and organized around three economic legs:
The consumer services sector – all economic activity that is focused on directly or indirectly meeting the consumption demands of its residents
The import sector – all importing activities that bring in goods and services to serve the needs and desires of a region
The export sector – all exporting activity that brings money into the regions by selling goods and/or services of value to intra-province, inter-province or international markets
The export sector is the only source of new capital that an economy can use to pay for the goods and services it must import to meet its needs and desires, and the only source of additional capital for conducting transactions and taxation within the consumer services sector. In other words, an economy will stagnate and eventually evaporate if it is solely dependent on the consumer services and import sectors of its economy.
An investment attraction strategy strives to ensure that sufficient additional capital is circulating in your economy to allow it to purchase needed goods and services.
A vibrant and diverse regional economy requires a strategic focus on investment attraction in order to grow and diversify its export sector. VE has developed numerous investment attraction strategies for regional economies in the U.S. and Canada. Contact us to discuss how an investment attraction strategy could help your region’s leaders expand economic potential in your area.
Regional Community & Economic Development Services