This study aims to review the theoretical and empirical studies related to the literature on investment incentives. Most studies explored in this paper conclude that, despite being important in attracting FDI, tax incentives are more effective when combined with other financial incentives. There is an argument regarding investment incentives. While some studies promote using these incentives with few restrictions on their positive role regarding investment growth and economic development, others claim that this contribution is only a burden on the state budget due to the high applicable cost. Despite that , both recommend regular inspection and evaluation of these incentives to ensure their sustainable relevance and effectiveness.