International treaties and foreign direct investment: an empirical analysis of effects of bilateral investment treaties on South Korea's FDI

Jung, Heon Joo; Kim, Eun Mi

doi:10.1080/13547860.2019.1686915

Cited by 8 publications

(7 citation statements)

References 10 publications

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“…Kox and Rojas‐Romagosa (2020) conclude that BITs significantly affect inflows after studying the impact of various preferential agreements on FDI flows between countries. Jung and Kim (2020), estimating the effects of the Republic of Korea's BITs, conclude that BITs contribute to the growth of outward FDI. Thus, most studies confirm the importance of BITs as a catalyst for investment activity between countries.…”

Section: The Effect Of Bits On Fdi Inflowsmentioning

confidence: 99%

The effects of India's bilateral investment treaties termination on foreign direct investment inflows

Kotyrlo

Kalachyhin

2023

Econ of Transit and Inst Chang

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India initiated the unilateral mass termination of bilateral investment treaties (BIT termination) in 2016. We consider it a natural experiment to clarify the issue of whether BITs attract foreign direct investment (FDI) to a developing country. We evaluate the effect of BIT termination on the FDI inflows using the double and triple difference approaches (DD and DDD) and the synthetic control (SCM) methods. Our study finds that BIT termination led to a significant decrease in FDI inflows from the country with which India terminated the agreement. Thus, the study confirms that BIT is an essential mechanism for attracting FDI.

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Section: The Effect Of Bits On Fdi Inflowsmentioning

confidence: 99%

The effects of India's bilateral investment treaties termination on foreign direct investment inflows

Kotyrlo

Kalachyhin

2023

Econ of Transit and Inst Chang

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“…Then, judging from each title, abstract and other related information, we narrowed the list to more than 150 studies. In the second step, we examined the contents of the above research works one by one and limited our literature list to those containing estimates that could be subjected to meta-analysis in this paper, and we obtained a total of 74 studies dating from Egger and Pfaffermayr (2004) to Jung and Kim (2020). As reported in Table 1, these 74 selected works consist of 5 book chapters, 54 journal articles, and 15 unpublished manuscripts including one PhD thesis.…”

Section: Procedures For Literature Selectionmentioning

confidence: 99%

Does Investor Protection Increase Foreign Direct Investment? A Meta‐analysis

Brada

Drábek

Iwasaki

2020

Journal of Economic Surveys

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We undertake a meta‐analysis of the effects of international investment agreements for the protection of foreign investors on foreign direct investment using 2107 estimates drawn from 74 studies. Our meta‐analysis finds robust evidence that effect of international investment agreements is so small as to be considered zero. However, our results do not rule out the possibility that the effect of these agreements is, in fact, positive and that current research methods are insufficiently powerful or precise to identify the underlying genuine effect. FDI from developed countries appears to be more responsive to the existence of investment protection, and there is evidence of publication–selection bias in favour of studies that find a positive effect for investor protection.

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“…Some literature points to the explanation of FDI flow associated with the signing and ratifying of IIAs and the investment provisions in IIAs (Aisbett et al 2018;Beebeejaun 2018;Bengoa et al 2020;Dixon and Haslam 2015;Egger and Merlo 2007;Egger and Merlo 2012;Egger and Pfaffermayr 2004;Frenkel and Walter 2018;Jacobs and Ostergard 2019;Jung and Kim 2019;Neumayer et al 2016;Tulayasathien and Tejapaibul 2017;Xiao 2011;Zeng and Lu 2016). The first strand of reasoning makes the case that the signing and ratifying IIAs are used to attract foreign direct investment.…”

Section: Effect Of International Investment Agreement On Foreign Dirementioning

confidence: 99%

“…The signing and ratifying IIAs might be regarded as being more effective for FDI flow than multilateral or bilateral agreements that focused solely on the negotiation issue. Simultaneously, Jung and Kim (2019) revisited the impact of South Korea's BITs signed and enforced on its outward FDI flows and showed that both BITs signed and enforced had positive and significant effects on outward FDI.…”

Section: Effect Of International Investment Agreement On Foreign Dirementioning

confidence: 99%

“…In particular, the membership of the RCEP agreement is important to stimulate intra-bloc FDI activities. Regarding the existing studies on the consequences of IIAs, although many of them investigated how IIAs were associated with the inward and outward FDI (Aisbett et al 2018;Bengoa et al 2020;Berger et al 2013;Dixon and Haslam 2015;Egger and Merlo 2012;Jung and Kim 2019;Neumayer et al 2016;Zeng and Lu 2016), few studies have discussed the relationship between various investment provisions (investment protection, facilitation, and promotion) of IIAs and FDI activities. Meanwhile, the relationship between IIAs and FDI in the RCEP remains questionable due to the lack of conclusive theoretical discussion and empirical results.…”

Section: Introductionmentioning

confidence: 99%

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International Investment Agreements Provisions and Foreign Direct Investment Flows in the Regional Comprehensive Economic Partnership Region

Uttama

2021

Economies

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The international investment agreements (IIAs) are a strategic policy instrument that member countries could use to achieve win-win cooperation. Meanwhile, the extension of the Association of Southeast Asian Nations (ASEAN) membership toward the Regional Comprehensive Economic Partnership (RCEP) membership has induced the rich and deep investment agreement that challenges the ASEAN countries to take advantage. This study demonstrates the effects of investment provisions in international investment agreements on the bilateral foreign direct investment (FDI) in the RCEP economies. It also investigates the effect of ASEAN membership on investment creation and investment diversion toward the RCEP region. Using panel data on RCEP countries during the period 2009 to 2018 and a Poisson pseudo-maximum likelihood estimator, the results show that the relationship between inward FDI and investment provisions in IIAs are positive and significant. Likewise, the investment protection, facilitation, and promotion provisions in bilateral investment treaties have positive and significant effects on the inward FDI. Moreover, the findings indicate that the ASEAN membership tends to cause the investment creation toward the RCEP region; and it is a stepping stone on the road to the investment policy framework for sustainable development.

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International treaties and foreign direct investment: an empirical analysis of effects of bilateral investment treaties on South Korea's FDI

Cited by 8 publications

References 10 publications

The effects of India's bilateral investment treaties termination on foreign direct investment inflows

The effects of India's bilateral investment treaties termination on foreign direct investment inflows

Does Investor Protection Increase Foreign Direct Investment? A Meta‐analysis

International Investment Agreements Provisions and Foreign Direct Investment Flows in the Regional Comprehensive Economic Partnership Region

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