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International investment agreements (IIAs) are a key instrument in the strategies of most countries, in particular developing countries, to attract foreign investment. The objective of this publication is to explore the role of IIAs in attracting FDI into developing countries. The paper starts with a summary of the main host country determinants for foreign direct investment (FDI): the general policy framework for foreign investment; economic determinants; and business facilitation, such as investment promotion including investment incentives. Then it focuses on the role of IIAs as FDI determinants. It also reviews a number of econometric studies that explore the impact of IIAs on investment inflows into developing countries.
International investment agreements (IIAs) are a key instrument in the strategies of most countries, in particular developing countries, to attract foreign investment. The objective of this publication is to explore the role of IIAs in attracting FDI into developing countries. The paper starts with a summary of the main host country determinants for foreign direct investment (FDI): the general policy framework for foreign investment; economic determinants; and business facilitation, such as investment promotion including investment incentives. Then it focuses on the role of IIAs as FDI determinants. It also reviews a number of econometric studies that explore the impact of IIAs on investment inflows into developing countries.
