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International investment agreements and foreign direct investment: A survey

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  • Peter Egger
  • Alain Pirotte
  • Catharine Titi

Abstract

This paper reviews the relationship between international investment agreements (IIAs) and foreign direct investment (FDI). It is organised in two parts. The first part explores the generic structure of IIAs and highlights the components that are particularly relevant to FDI. It then gives an overview of the specific content of investment treaties using a representative treaty sample over the period 1980–2020. The second part is devoted to surveying theoretical and empirical work on the impact of IIAs on FDI, while highlighting issues with the measurement of FDI, missing FDI data and effect identification due to endogeneity problems. A key difference from earlier surveys is that this article differentiates between IIAs depending on their content and takes this differentiation into account in the measurement of IIAs and their effects on FDI.

Suggested Citation

  • Peter Egger & Alain Pirotte & Catharine Titi, 2023. "International investment agreements and foreign direct investment: A survey," The World Economy, Wiley Blackwell, vol. 46(6), pages 1524-1565, June.
    • Handle: RePEc:bla:worlde:v:46:y:2023:i:6:p:1524-1565
    DOI: 10.1111/twec.13429
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    References listed on IDEAS

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    2. Bradley, Sebastien & Carril-Caccia, Federico & Yotov, Yoto, 2023. "Reassessing the Effects of Corporate Income Taxes on Mergers and Acquisitions Using Empirical Advances in the Gravity Literature," School of Economics Working Paper Series 2023-8, LeBow College of Business, Drexel University.
    3. Federico Carril-Caccia & Ana Cuadros & Jordi Paniagua, 2024. "Mind the gaps: Gender complementarities in migration and FDI," Working Papers 2402, Department of Applied Economics II, Universidad de Valencia.
    4. Gómez-Mera, Laura & Varela, Gonzalo, 2024. "Emerging market multinationals and international investment agreements," International Business Review, Elsevier, vol. 33(3).

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