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Investment Provisions in Regional Integration Agreements for Developing Countries

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  • Oliver Morrissey

Abstract

Investment is a major determinant of economic growth, both in reference to the level of the capital stock and its productivity, but has been deficient in poor developing countries. A particular concern for poor countries has been relatively low levels of foreign direct investment (FDI), and a low impact of such investment on growth. The paper focuses on sub-Saharan African (SSA) countries and on FDI to cover four issues related to measures to promote investment: the types of investment measures included in bilateral, regional and multilateral agreements; evidence for effects of provisions on investment, especially FDI; the type of regulatory and business environment most conducive to growth-enhancing investment; and the implications for ‘best practice’ in promoting investment, in particular measures that can be incorporated in regional agreements. Investment provisions can be used to serve a number of purposes - investment promotion and cooperation, liberalisation and market access, and investment protection – and evidence suggests that their incorporation in agreements does increase foreign investment.

Suggested Citation

  • Oliver Morrissey, 2008. "Investment Provisions in Regional Integration Agreements for Developing Countries," Discussion Papers 08/06, University of Nottingham, CREDIT.
    • Handle: RePEc:not:notcre:08/06
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    Cited by:

    1. Shah, Mumtaz Hussain, 2018. "Corruption & Foreign Direct Investment: The Case of South Asia," MPRA Paper 107253, University Library of Munich, Germany.
    2. repec:jle:journl:107 is not listed on IDEAS
    3. Chris Milner & Oliver Morrissey & Evious Zgovu, 2008. "Trade Facilitation in Developing Countries," Discussion Papers 08/05, University of Nottingham, CREDIT.
    4. Shah, Mumtaz Hussain, 2016. "The Effect of Macroeconomic Stability on Inward FDI in African Developing Countries," MPRA Paper 82014, University Library of Munich, Germany.
    5. Rod Falvey & Annamaria La Chimia & Oliver Morrissey & Evious Zgovu, 2008. "Competition Policy and Public Procurement in Developing Countries," Discussion Papers 08/07, University of Nottingham, CREDIT.

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    Keywords

    Investment Provisions; Regional Integration;

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