Foreign Direct Investment and Investment Policy 2.0

A special issue of Economies (ISSN 2227-7099).

Deadline for manuscript submissions: 1 May 2025 | Viewed by 2716

Special Issue Editor


E-Mail Website
Guest Editor
College of Business and Entrepreneurship, Bethune-Cookman University, Daytona Beach, FL 32114, USA
Interests: international trade; foreign direct investment; economic development; economic growth; tourism; exchange rate volatility
Special Issues, Collections and Topics in MDPI journals

Special Issue Information

Dear Colleagues,

International financial flows, such as foreign direct investment, play an important role in open economies. Such international financial flows are becoming increasingly important for developing countries given their fragile institutions and financial constraints. However, the situation became even more challenging with the COVID-19 pandemic. For this Special Issue of Economies, we welcome submissions on any topic related to foreign direct investment and investment policy. The purpose of this Special Issue is to collect high-quality, recent research on the different problems related to foreign direct investment, including research pertaining to, but not limited to, the determinants of foreign direct investment, foreign investment and outsourcing, international investment agreements, investment promotion programs, international finance, and investment policy.

This Special Issue welcomes conceptual papers as well as full-length articles on various topics that pertain to foreign direct investment and investment policy. Both empirical and theoretical papers will be considered.

Dr. E. M. Ekanayake
Guest Editor

Manuscript Submission Information

Manuscripts should be submitted online at www.mdpi.com by registering and logging in to this website. Once you are registered, click here to go to the submission form. Manuscripts can be submitted until the deadline. All submissions that pass pre-check are peer-reviewed. Accepted papers will be published continuously in the journal (as soon as accepted) and will be listed together on the special issue website. Research articles, review articles as well as short communications are invited. For planned papers, a title and short abstract (about 100 words) can be sent to the Editorial Office for announcement on this website.

Submitted manuscripts should not have been published previously, nor be under consideration for publication elsewhere (except conference proceedings papers). All manuscripts are thoroughly refereed through a single-blind peer-review process. A guide for authors and other relevant information for submission of manuscripts is available on the Instructions for Authors page. Economies is an international peer-reviewed open access monthly journal published by MDPI.

Please visit the Instructions for Authors page before submitting a manuscript. The Article Processing Charge (APC) for publication in this open access journal is 1800 CHF (Swiss Francs). Submitted papers should be well formatted and use good English. Authors may use MDPI's English editing service prior to publication or during author revisions.

Keywords

  • foreign direct investment
  • foreign portfolio investment
  • international finance
  • international
  • investment policy
  • FDI and international trade
  • FDI spillovers
  • determinants of FDI

Published Papers (2 papers)

Order results
Result details
Select all
Export citation of selected articles as:

Research

Jump to: Review

19 pages, 349 KiB  
Article
Does Economic Growth Attract FDI Inflows? A Dynamic Panel Analysis
by Pascal L. Ghazalian
Economies 2024, 12(1), 1; https://doi.org/10.3390/economies12010001 - 19 Dec 2023
Viewed by 2176
Abstract
Economic growth is deemed to be a conducive factor in attracting foreign direct investment (FDI) as it often confers location advantage to host countries and fosters business confidence. This paper examines the short-run and the long-run effects of economic growth on FDI inflows. [...] Read more.
Economic growth is deemed to be a conducive factor in attracting foreign direct investment (FDI) as it often confers location advantage to host countries and fosters business confidence. This paper examines the short-run and the long-run effects of economic growth on FDI inflows. The empirical analysis is conducted through the Generalized Method of Moments (GMM) System estimator for dynamic panel models. The main results show significant positive effects of economic growth on FDI inflows, and they indicate that the magnitudes of these effects are statistically comparable over time and do not diminish with higher economic growth levels. They also reveal important variations in the magnitude of these effects across geo-economic regions and over pertinent economic variables such as economic development level, international trade and foreign investment openness, and endowment in natural resources. These findings underscore the significance of developing growth-enhancing policies that are designed on the basis of the economic and geo-economic characteristics of host countries. Such policies could be coupled with international trade and foreign investment openness directions to stimulate stronger responses of FDI inflows to economic growth and mitigate the implications of unfavorable global and regional political conditions. Full article
(This article belongs to the Special Issue Foreign Direct Investment and Investment Policy 2.0)

Review

Jump to: Research

20 pages, 373 KiB  
Review
The (Political) Economics of Bilateral Investment Treaties—The Unique Trajectory of Brazil
by Christian Bellak and Markus Leibrecht
Economies 2024, 12(6), 130; https://doi.org/10.3390/economies12060130 - 24 May 2024
Viewed by 297
Abstract
Brazil, after signing several traditional Bilateral Investment Treaties without ratifying them, recently shifted towards a different type of bilateral investment agreement, i.e., Investment Cooperation and Facilitation Agreements. Two claims have been made in the literature regarding the transition from traditional Bilateral Investment Treaties [...] Read more.
Brazil, after signing several traditional Bilateral Investment Treaties without ratifying them, recently shifted towards a different type of bilateral investment agreement, i.e., Investment Cooperation and Facilitation Agreements. Two claims have been made in the literature regarding the transition from traditional Bilateral Investment Treaties to Investment Cooperation and Facilitation Agreements—Claim #1: The non-ratification of the traditional BITs has not harmed Foreign Direct Investment into Brazil, a claim which puts into question the purpose of Bilateral Investment Treaties. Claim #2: While Investment Cooperation and Facilitation Agreements avoid some of the problems of traditional Bilateral Investment Treaties, on balance they are less effective than traditional Bilateral Investment Treaties would have been. We examine the two claims from an empirical economic point of view. We build on the literature about Brazil’s position vis-à-vis Bilateral Investment Treaties, which must be viewed by an amalgamation of (i) a historical legacy; (ii) domestic initiatives, and (iii) a particular U-turn in the political debate. Using empirical evidence on Foreign Direct Investment effects of Bilateral Investment Treaties, the following conclusions emerge: With regard to claim #1, empirical evidence in general as well as specific to Brazil suggests that Brazil has forgone Foreign Direct Investment by not ratifying traditional Bilateral Investment Treaties. Concerning claim #2, while Investment Cooperation and Facilitation Agreements include alternative dispute settlement mechanisms, which aim at a better compliance of states with the Investment Cooperation and Facilitation Agreements’ rules, rather than the compensation of foreign investors, the lower stringency of the State–State dispute settlement mechanism compared to Investor–State dispute settlement mechanism makes Investment Cooperation and Facilitation Agreements less effective. Yet, this weakening effect must be weighed against the effects on Foreign Direct Investment from innovative clauses in Investment Cooperation and Facilitation Agreements, which are absent in many traditional Bilateral Investment Treaties. Full article
(This article belongs to the Special Issue Foreign Direct Investment and Investment Policy 2.0)
Back to TopTop