Do International Investment Agreements promote Foreign Direct Investment?
by Ali Al-Sadig
International Journal of Trade and Global Markets (IJTGM), Vol. 4, No. 1, 2011

Abstract: The main objective of this study is to empirically evaluate the influences of IIAs on FDI patterns in the developing countries. Our study primarily focuses on the effects of four types of international instruments: Bilateral Investment Treaties (BITs), the avoidance of Double Taxation Treaties (DTTs), Preferential Trade Agreements (PTAs) and World Trade Organization (WTO). We estimate the gravity equation for bilateral FDI stock from seven source countries and 122 developing host countries over the period 1966-2005. Our results show that foreign investors positively respond to BITs, DTTs, PTAs and the WTO agreement.

Online publication date: Wed, 08-Apr-2015

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