The objective of this research project is to examine Australia's policy of regulating the inflow of foreign investment.
Foreign investment regulation is found to be a dynamic response by governments to certain economic and political conditions including patterns of foreign investment inflow. The political and economic conditions which resulted in Australia adopting a restrictive foreign investment policy are identified, and then the administration of that policy over the past decade is reviewed and discussed in relation to the changing political and economic climate for foreign investment.
It is concluded that while the political and economic climate for foreign investment in Australia has changed considerably, foreign investment policy in this country has remained static, and does not now appear to be appropriate to Australia's present circumstances.
It is suggested that the shortcomings of Australia's present foreign investment policy illustrate the need for government regulations to be related to defined objectives and to be consistent with other elements of the overall regulatory environment of business.