Authors: Ali Al-Sadig
Addresses: Research and Statistic Department, Saudi Arabian Monetary Agency, P.O. Box 2992, Riyadh 11169, Saudi Arabia
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.
Keywords: FDI; foreign direct investment; international investment agreements; gravity equation; developing countries; bilateral investment treaties; BITs; double taxation treaties; DTTs; preferential trade agreements; PTAs; World Trade Organization; WTO.
International Journal of Trade and Global Markets, 2011 Vol.4 No.1, pp.25 - 49
Available online: 03 Jan 2011 *Full-text access for editors Access for subscribers Purchase this article Comment on this article