Are stricter investment rules contagious? Host country competition for foreign direct investment through international agreements

Neumayer, Eric; Nunnenkamp, Peter; Roy, Martin

doi:10.1007/s10290-015-0231-z

Cited by 21 publications

(16 citation statements)

References 35 publications

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“…The first category of factors is related to the size of the host market (Botrić and Škuflić, 2006), the human resources quality and labor market characteristics (Castellani et al, 2006;Siedschlag et al, 2013;Villaverde and Maza, 2015), the institutional quality and reforms (Morisset and Pirnia, 2000;Wernick et al, 2009;Walsh, 2010;Tintin, 2013), and the proximity to research excellence centers (Siedschlag et al, 2013). The economic performance is assessed through investment's profitability (Gwenhamo, 2011), trade integration (Clausing, 2000;Lehmann, 2002), employment (Andersen and Hainaut, 1998), international agreements (Neumayer et al, 2016), and economic growth (Wernick et al, 2009;Tang et al, 2014). The third category covers elements associated with the quality of macroeconomic policies, namely the fiscal and the monetary policies.…”

Section: Introductionmentioning

confidence: 99%

The long-run impact of monetary policy uncertainty and banking stability on inward FDI in EU countries

Albulescu

Ionescu

2018

Research in International Business and Finance

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Section: Introductionmentioning

confidence: 99%

The long-run impact of monetary policy uncertainty and banking stability on inward FDI in EU countries

Albulescu

Ionescu

2018

Research in International Business and Finance

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“…A number of papers has analyzed the role of bilateral investment treaties, and ISDS provisions in particular, for inward FDI. In a series of papers, Busse, Königer, and Nunnenkamp (), Berger, Busse, Nunnenkamp, and Roy (), and Neumayer, Nunnenkamp, and Roy () find little or no evidence for stricter ISDS provisions to promote FDI, using aggregate FDI data in a gravity‐type regression framework. By contrast, Egger and Merlo ()—using micro data from the universe of German multinational firms—find a positive and significant effect of BITs on the number flows and FDI magnitude in host countries.…”

Section: Related Literaturementioning

confidence: 99%

Regulatory chill and the effect of investor state dispute settlements

Janeba

2019

Rev International Economics

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Legal conflicts between multinational firms and host governments are often decided by international arbitration panels-as opposed to courts in the host country-because of provisions in international investment agreements known as investor state dispute settlements (ISDS). Critics fear that investor protection such as ISDS make governments reluctant to adopt appropriate policies (regulatory chill). In this paper I develop a theoretical model in which the outcome of cases brought to court is uncertain owing to the vagueness of the law protecting investors and a court's inability to correctly identify a state of nature with certainty. I show that from a world welfare perspective there is no underregulation, only an overregulation problem. However, from a national welfare perspective "frivolous" lawsuits may lead to regulatory chill. I also identify conditions under which ISDS can lead to a Pareto improvement that involves simultaneous changes in compensation payments and protection rights relative to a national court.

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“…Neumayer et al highlighted that the contagiousness of signing bilateral investment treaties with stricter investor-to-state dispute settlement (ISDS) and pre-establishment national treatment (NT) provisions among the host developing countries is due to competition for FDI originated from one parent country. In contrast, the developing country, which previously has already signed treaties with weak investment provisions, will tend to sign a similar treaty with weak provisions with other developed country [26]. The Jang's study of OECD and non-OECD countries examines the impact of FTA on FDI patterns between developed-developed countries as well as developed-developing countries.…”

Section: Literature Review: Fdi Determinants and Regional Integrationmentioning

confidence: 99%

Fdi Determinants in the Eurasian Economic Union Countries and Eurasian Economic Integration Effect on Fdi Inflows

Zhumakankyzy¹,

Mukhamediyev²

2017

EoR

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1 The paper examines the potential determinants of foreign direct investment inflows into the region of Eurasian Economic Union, as well as incentives for investment into other neighboring countries. In the first model, the authors test a hypothesis on country specific foreign direct investment determinants for the Eurasian Economic Union region. The results of fixed effects estimation show that gross domestic product, infrastructure development and secondary education enrollment have a positive statistically significant effect on the foreign direct investment inflows into the region. Conversely, the impact of Customs Union on foreign direct investment appeared to be negative. Furthermore, in the second model of the natural experiment, the authors empirically test the hypothesis on Customs Union's effect on foreign direct investment while controlling for both country and time effects. The model includes evaluating the impact of the policy change on foreign investment inflows. The natural experiment outcome also points to the negative effect of Eurasian economic integration on foreign direct investment inflows. Although the countries of Eurasian Economic

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Are stricter investment rules contagious? Host country competition for foreign direct investment through international agreements

Cited by 21 publications

References 35 publications

The long-run impact of monetary policy uncertainty and banking stability on inward FDI in EU countries

The long-run impact of monetary policy uncertainty and banking stability on inward FDI in EU countries

Regulatory chill and the effect of investor state dispute settlements

Fdi Determinants in the Eurasian Economic Union Countries and Eurasian Economic Integration Effect on Fdi Inflows

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