Maximizing Agricultural Growth Policy Space Through Public Expenditures and Foreign Direct Investment in Cameroon (1985–2016)

Abstract There is a long-standing claim and ambition in international investment law that treaties and customary law contribute to economic development in countries hosting investment. However, this claim remains controversial and has been hotly debated among academics. The article explores how international investment law, understood as international investment agreements (IIAs) and their associated dispute settlement mechanisms, can support the right to development. It does so by analysing how rules regarding protection and flow of foreign direct investment have and can contribute to realizing the right to development and help achieve sustainable development goals. It finds that IIAs have had limited effects for promotion of investment into or restricting the policy space for least developed and low-income countries. It argues that potential effects of IIAs cannot be properly understood without taking into account other means of protecting and promoting foreign direct investment, i.e., national investment legislation and contracts. So far, national investment legislation is likely to have had more significant impact on flows of foreign direct investment and policy space of host countries than IIAs. Reforms of IIAs to increase synergies with the right to development will, therefore, have to be based on knowledge about and assessments of the dynamics between IIAs, domestic investment legislation, and investment contracts.

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The Chilling Effect of Indirect Expropriation Clauses on Host States’ Public Policies: a Call for a Legislative Response

International Community Law Review ◽

10.1163/18719732-12341428 ◽

2020 ◽

Vol 22 (2) ◽

pp. 235-270

Author(s):

Maryam Malakotipour

Keyword(s):

Public Policy ◽

Foreign Direct Investment ◽

Direct Investment ◽

Public Policies ◽

International Investment ◽

Public Welfare ◽

Policy Space ◽

Chilling Effect ◽

International Investment Agreements ◽

Investment Agreements

Abstract While International Investment Agreements (IIAs) can potentially contribute to host states’ development, the chilling effect of IIAs on host states’ public policies is the flip side of investment treaties. The lack of a clear statutory formulation of indirect expropriation and, hence, the interpretive loopholes in investor-state jurisprudence have caused unfavourable consequences attached to the application of IIAs on the protection and promotion of public welfare. This paper encourages states to revisit the formulation of their indirect expropriation clauses in line with the provided practical solutions, which allow states to have more policy space for their legitimate public policy actions without having their Foreign Direct Investment inflows decreased.

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Trade policy space and foreign direct investment inflows

Review of International Business and Strategy ◽

10.1108/ribs-05-2019-0056 ◽

2020 ◽

Vol 30 (3) ◽

pp. 323-343

Author(s):

Sena Kimm Gnangnon

Keyword(s):

Foreign Direct Investment ◽

Trade Policy ◽

Direct Investment ◽

Quantitative Measure ◽

Policy Space ◽

Data Set ◽

Fdi Inflows ◽

Content Type ◽

Advanced Economies ◽

The Impact

Purpose This study aims to use a quantitative measure of trade policy space to investigate empirically whether trade policy space influences foreign direct investment (FDI) flows to countries. Design/methodology/approach The empirical analysis covers an unbalanced panel data set of 158 countries, over the period 1995–2015 and uses the two-step system generalized methods of moments approach. Findings The results suggest that the impact of trade policy space on FDI inflows is positive and increases as countries enjoy greater trade policy space. Furthermore, advanced economies tend to experience a higher positive impact of trade policy space on FDI inflows than less advanced economies. Research limitations/implications These findings highlight the relevance of trade policy space for countries’ FDI inflows. Practical implications The analysis shows that non-trade related constraints to trade policy could reduce trade policy space and adversely influence FDI inflows, which are critical for countries’ economic growth and development. Originality/value To the best of the knowledge, this topic has not been addressed in the literature.

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Japanese Foreign Direct Investment, Trade and Agricultural Growth in East Asia

Studies in Regional Science ◽

10.2457/srs.36.853 ◽

2006 ◽

Vol 36 (4) ◽

pp. 853-870 ◽

Cited By ~ 1

Author(s):

Weerapong SATTAPHON ◽

Akira KIMINAMI

Keyword(s):

Foreign Direct Investment ◽

East Asia ◽

Direct Investment ◽

Agricultural Growth

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Does foreign direct investment cause higher levels of productivity or do higher levels of productivity attract foreign direct investment? A study in transforming brazilian industry

Revista de Ciências da Administração ◽

10.5007/2175-8077.2013v15n35p82 ◽

2013 ◽

pp. 82-94

Author(s):

Nádia Campos Pereira ◽

Cristina Lelis Leal Calegario ◽

Ricardo Pereira Reis

Keyword(s):

Foreign Direct Investment ◽

Foreign Investment ◽

Direct Investment ◽

Investment Decision ◽

Granger Causality Test ◽

Causality Test ◽

Foreign Investors ◽

Investment Projects ◽

Growth Policy ◽

Productivity Gains

With this research, it was aimed to investigate the factors that determine the investment decision of foreign investors in the Brazilian industry. Evidence shows that foreign investors are attracted not only by more productive and best performing sectors, but depending on the adopted strategy, they may choose investment projects in sectors that have lower performance levels which offer the potential for growth and the and improvement of efficiency levels and capacity. Granger causality test indicated that not only foreign investment gives more productivity gains, but also this productivity induces more foreign investment inputs. Foreign investors are also attracted by those sectors, which use their assets in an inefficient way in order to generate profits. These sectors may be attractive to foreign investors that want to invest in a more aggressive growth policy in order to get advantages on the availability of inefficiently used assets. These sectors may be also attractive targets to investors who seek to compete directly in relatively less competitive sectors.

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