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Association: Name: Southern Political Science Association URL: http://www.spsa.net
Citation: URL: http://www.allacademic.com/meta/p69076_index.html Direct Link: HTML Code:

Freeman, Nathan. "International Legal Commitments and Foreign Direct Investment Flows to Developing Countries" Paper presented at the annual meeting of the Southern Political Science Association, TBA, TBA, Jan 05, 2006 <Not Available>. 2008-12-12 <http://www.allacademic.com/meta/p69076_index.html>

Freeman, N. W. , 2006-01-05 "International Legal Commitments and Foreign Direct Investment Flows to Developing Countries" Paper presented at the annual meeting of the Southern Political Science Association, TBA, TBA Online <PDF>. 2008-12-12 from http://www.allacademic.com/meta/p69076_index.html

Publication Type: Conference Paper/Unpublished Manuscript Abstract: Foreign direct investment (FDI) has grown dramatically over the past 3+ decades. At the same time developing countries have made an ever-increasing number of investment-related legal commitments at the international level, particularly through the conclusion of so-called bilateral investment treaties (BITs). BITs are typically portrayed as entailing promises of protection to foreign investors in exchange for the prospect of increased FDI in the future. Given the costs of such treaties, in terms of the loss of sovereignty and the potential for diminished regulatory capacity, some scholars have recently begun to inquire into the empirical relationship between BITs and FDI flows to developing countries in order to see whether BITs actually do promote increased FDI. This paper seeks to build upon this literature by offering a fuller theoretical account of how BITs and other international investment-related legal commitments might encourage FDI inflows to developing countries and by adding to the existing econometric work on the relationship between BITs and FDI flows. The results of my time-series cross-sectional analysis suggest that the signing of more BITs does have a positive impact on the amount of FDI inflows a developing country receives.

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