scholarly journals The Impact of Bilateral Investment Treaties on FDI Inflows Into India: Some Empirical Results

2021 ◽  
pp. 001573252110273
Author(s):  
Jaivir Singh ◽  
Vatsala Shreeti ◽  
Parnil Urdhwareshe
Keyword(s):  
International Investment ◽  
Bilateral Investment Treaties ◽  
Fdi Inflows ◽  
International Investment Agreements ◽  
Investment Treaties ◽  
Dispute Settlements ◽  
Generalised Method Of Moments ◽  
The Individual ◽  
State Rights ◽  
The Impact

After a run of adverse investor-state dispute settlements, India has recently denounced all its erstwhile investment treaties. New investment treaties need to be negotiated on the basis of a new Model Treaty that privilege state rights over investor rights. We study the impact of bilateral investment treaties on foreign direct investment (FDI) inflows into India before the denunciation with the intent of inferring the consequences of changing the system. Our work captures the effects of international investment agreements on FDI inflows specifically into India. We construct an empirical model drawing on the Gravity Model, and estimate parameters using generalised method of moments. The results show that while the individual signing of bilateral investment treaties does not influence the inflow of FDI, the effect of the cumulative bilateral investment treaties signed is statistically very significant—suggesting that the spill over effect of signing a series of bilateral investment treaties are important, signalling a regime of overall protection to investors. The importance of institutional variables in influencing FDI tells us that overall participation in a system governed by international investor agreements influenced the inflow of FDI positively and therefore recent policy changes should be viewed with caution. JEL Codes: F21, F23, F550, F63, K33, O19, C22, C29

The Republic of Ghana and Bilateral Investment Treaties: A Burgeoning Expert?

2020 ◽  
Author(s):  
Gracious Avayiwoe
Keyword(s):  
International Investment ◽  
Current Status ◽  
Bilateral Investment Treaties ◽  
Investment Treaty ◽  
Pan African ◽  
International Investment Agreements ◽  
Investment Treaties ◽  
The Republic ◽  
Investment Agreements

Abstract In this note, I categorize and review the bilateral investment treaties (BITs) concluded by the Republic of Ghana. I identify the current status of Ghana in the BIT sphere as being that of neither a novice nor a fully-fledged expert. The country is, nevertheless, progressively exhibiting some level of innovation and negotiation influence. Notwithstanding, all generations of its BITs remain very broad in scope, and, also, share laconic and vaguely-worded provisions. Furthermore, contemporary models of international investment agreements (IIAs) as contained in Ghana’s latest BIT—the earlier generations having lacked such innovations—is not as robust as those in emerging IIAs of Africa. Towards sustainability and systemic coherence of the BITs and the new African IIA paradigm, Ghana, certainly, needs to reform its existing BITs and reorient its future investment treaty practice. In the interim, I propose the Pan-African Investment Code (PAIC) as the benchmark.

1 A Global Regime for Investment

2021 ◽  
Author(s):  
Salacuse Jeswald W
Keyword(s):  
International Law ◽  
Foreign Investment ◽  
International Investment ◽  
Bilateral Investment Treaties ◽  
International Regime ◽  
International Investment Agreements ◽  
Global Regime ◽  
Investment Treaties ◽  
Investment Agreements

This chapter provides an overview of investment treaties. Investment treaties, often referred to as ‘international investment agreements’ (IIAs), are essentially instruments of international law by which states (1) make commitments to other states with respect to the treatment they will accord to investors and investments from those other states, and (2) agree to some mechanism for enforcement of those commitments. A fundamental purpose of investment treaties, as indicated by their titles, is to protect and promote investment. International investment treaties consist principally of three types: (1) bilateral investment treaties, commonly known as ‘BITs’; (2) bilateral economic agreements with investment provisions; and (3) other investment-related agreements involving more than two states. The chapter then considers the significance of investment treaties and argues that together they constitute an international regime for foreign investment.

China's International Investment Strategy

2019 ◽  
Keyword(s):  
Development Strategy ◽  
Foreign Investment ◽  
Developed Countries ◽  
Investment Strategy ◽  
International Investment ◽  
Bilateral Investment Treaties ◽  
Open Door Policy ◽  
Outward Fdi ◽  
Investment Law ◽  
Investment Treaties

The phenomenal story of China’s ‘unprecedented disposition to engage the international legal order’ has been primarily told and examined by political scientists and economists. Since China adopted its ‘open door’ policy in 1978, which altered its development strategy from self-sufficiency to active participation in the world market and aimed at attracting foreign investment to fuel its economic development, the underlying policy for mobilizing inward foreign direct investment (IFDI) remains unchanged to date. With the 1997 launch of the ‘Going Global’ policy, an outward focus regarding foreign investment has been added, to circumvent trade barriers and improve the competitiveness of Chinese firms, typically its state-owned enterprises (SOEs). In order to accommodate inward and outward FDI, China’s participation in the international investment regime has underpinned its efforts to join multi-lateral investment-related legal instruments and conclude international investment agreements (IIAs). China began by selectively concluding bilateral investment treaties (BITs) with developed countries (major capital exporting states to China at that time), signing its first BIT with Sweden in 1982. Despite being a latecomer, over time China’s experience and practice with the international investment regime have allowed it to evolve towards liberalizing its IIAs regime and balancing the duties and benefits associated with IIAs. The book spans a broad spectrum of China’s contemporary international investment law and policy: domestic foreign investment law and reforms, tax policy, bilateral investment treaties, free trade agreements, G20 initiatives, the ‘One Belt One Road’ initiative, international dispute resolution, and inter-regime coordination.

What Should We Know About the Origins of International Investment Law?

2020 ◽  
Vol 48 (3) ◽  
pp. 122-131
Author(s):  
Sarah M. Alshahrani
Keyword(s):  
Ottoman Empire ◽  
Historical Context ◽  
Developed Countries ◽  
International Investment ◽  
Arab Countries ◽  
International Investment Law ◽  
The Usa ◽  
Investment Law ◽  
Investment Treaties ◽  
The Impact

AbstractInternational investment law, particularly the global backlash against investment treaties, has evolved recently. This article aims to clarify how international investment law evolved over history, from the early Arab traders in the 7th century to the Ottoman Empire, to understand its hidden aims. It investigates the practice of signing investment treaties, which appear first during the Fatimid Caliphate2 and Mamluk Sultanate3 periods. It then explains when control over foreign investment started to diminish during the Ottoman Empire period.4 Further, it explains the links between the USA Friendship, Commerce and Navigation treaties (FCNs), and current investment treaties, explaining the impact of colonization and imperialism on drafting treaty provisions. Within this historical context, this article illustrates the need to understand the roots of international investment law in order to urge Arab countries to terminate or renegotiate current bilateral investment treaties (BITs) as a number of developing and developed countries have done.

Bilateral Investment Treaties and the Increase in Egyptian Appearances before International Arbitration Tribunals

2021 ◽  
Vol 29 (1) ◽  
pp. 40-61
Author(s):  
Ashraf M. A. Elfakharani ◽  
Rohana Abdul Rahman ◽  
Hamza E. Albaheth ◽  
Nor Anita Abdullah
Keyword(s):  
International Investment ◽  
Vital Role ◽  
Legal Issues ◽  
Bilateral Investment Treaties ◽  
International Arbitration ◽  
Foreign Investors ◽  
Investment Treaties ◽  
Very High

Bilateral investment treaties (BITs), as the name indicates, are meant to govern investment relations between two signatory states. In this context, Egypt holds a significant place among all respondent states, having to face a very high number of legal issues from foreign investors. These cases are pending before several international investment tribunals and Egypt is facing claims of over USD 20 billion annually from its foreign investors. In spite of such a grim situation, there are legal arbitrations that have increased the appearance of Egypt in international arbitration forums. There are several reasons for such a situation to arise, mainly because of the governmental measures towards foreign investors and interests. This article argues that in spite of the unspecified criteria shown towards foreign investors, the Bilateral Investment Treaty's items have played a vital role in increasing Egyptian appearances.

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