Reforming the Present International Legal Framework for Foreign Direct Investment (FDI): Basic Elements for an Analytical and Policy Framework

2015 ◽  
Author(s):  
Ramon Torrent ◽  
Federico Ortino ◽  
Xavier Fernandez-Pons ◽  
Federico Lavopa ◽  
Altagracia Acuevas ◽  
...  
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Legal Framework ◽  
Policy Framework

PFI OECD - Framework for Strong investment Policy

2015 ◽  
pp. 151-156
Author(s):  
A. Koval
Keyword(s):  
Sustainable Development ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Comprehensive Approach ◽  
Investment Policy ◽  
Policy Framework ◽  
Investment Climate ◽  
Systematic Monitoring ◽  
Investment Tool ◽  
National Investment

The improving investment climate objective requires a comprehensive approach to the regulatory framework enhancement. Policy Framework for Investment (PFI) is a significant OECD’s investment tool which makes possible to identify the key obstacles to the inflow foreign direct investment and to determine the main measures to overcome them. Using PFI by Russian authorities would allow a systematic monitoring of the national investment policy and also take steps to improve the effectiveness of sustainable development promotion regulations.

The Contribution of Foreign Direct Investment for Economic Growth of Ethiopia: Time Series Analysis

2018 ◽  
Vol 9 (02) ◽  
Author(s):  
Addissie Melak
Keyword(s):  
Economic Growth ◽  
Time Series ◽  
Foreign Direct Investment ◽  
Time Series Analysis ◽  
Direct Investment ◽  
Policy Framework ◽  
Annual Growth Rate ◽  
African Countries ◽  
Series Analysis ◽  
Integration Test

Economic growth of countries is one of the fundamental questions in economics. Most African countries are opening their economies for welcoming of foreign investors. As such Ethiopia, like many African countries took measures to attract and improve foreign direct investment. The purpose of this study is to examine the contribution of foreign direct investment (FDI) for economic growth of Ethiopia over the period of 1981-2013. The study shows an overview of Ethiopian economy and investment environment by the help of descriptive and econometric methods of analysis to establish empirical investigation for the contribution of FDI on Ethiopian economy. OLS method of time series analysis is employed to analyse the data. The stationary of the variables have been checked by using Augmented Dickey Fuller (ADF) Unit Root test and hence they are stationery at first difference. The co- integration test also shows that there is a long run relationship between the dependent and independent variables. Accordingly, the finding of the study shows that FDI, GDP per capita, exchange rate, total investment as percentage of GDP, inflow of FDI stock, trade as percentage of GDP, annual growth rate of GDP and liberalization of the economy have positive impact on Ethiopian GDP. Whereas Gross fixed domestic investment, inflows of FDI and Gross capital formation influence economic growth of Ethiopia negatively. This finding suggests that there should be better policy framework to attract and improve the volume of FDI through creating conducive environment for investment.

scholarly journals Foreign direct investment and policy framework: New Granger causality evidence from African countries

2014 ◽  
Vol 17 (5) ◽  
pp. 557-568 ◽  
Author(s):  
Rafiu Adewale Aregbeshola
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Developing Economies ◽  
Developed Countries ◽  
Policy Framework ◽  
African Countries ◽  
Monetary Policies ◽  
Using Data ◽  
The Developed Countries ◽  
Improved Technology

The strategic importance of foreign direct investment in the contemporary economies has been tremendous.While various countries (developed and developing economies) have benefitted from the direct and spillovereffects of FDI, which range from improved technology and knowledge diffusion through to individual andcorporate capability enhancement, FDI outflow remains largely channelled to the developed countries, andthe rapidly developing countries in Asia and South America. Evidence suggests that the developmentenhancingeffects of FDI are felt more highly in the developing economies, such as economies in Africa.However, FDI inflow to the developing economies has been very low. Using data generated from the AfricanDevelopment Indicators (ADI) between 1980 and 2008 in econometric estimations, this paper finds thatgovernment policies (especially fiscal and monetary policies) play significant roles in facilitating FDI inflow tothe African countries studied. The study thereby suggests an improved regulatory framework to make Africamore attractive to inflow of FDI.

scholarly journals The Effects of Foreign Direct Investment (FDI) on Sectoral Growth and Poverty in Africa

2020 ◽  
Author(s):  
Anayochukwu Basil Chukwu ◽  
Adeolu O Adewuyi
Keyword(s):  
Foreign Direct Investment ◽  
Human Development ◽  
Direct Investment ◽  
Poverty Reduction ◽  
Agricultural Sector ◽  
Output Growth ◽  
Policy Framework ◽  
Dynamic Threshold ◽  
Sectoral Growth ◽  
Service Sectors

Abstract Background This study examines the effects of foreign direct investment (FDI) on sectoral growth and poverty reduction in Africa. The transfer of technology into different sectors of economy through FDI has enabled many developing and emerging economies to achieve sustained economic growth and development. However, this is not the case with Africa’s growth architecture and poverty levels. A look at the region’s growth and welfare structure revealed that the FDI-growth-welfare relationship is weak when compared with those of other developing continents such as Asia and Latin America. Methods The study adopted recent causality method and simultaneous equation as well as dynamic threshold models to analyze the effect of FDI on sectoral growth and poverty. We accounted for sectoral spillover effect, heterogeneity, simultaneity and cross section dependence in our modeling. Results Main findings from our results suggest that FDI promotes outputs of manufacturing and service sectors, but hinders that of agricultural sector, while it fosters human development. Also, the results showed that, while human development promotes output of the agricultural sector, it deters output of manufacturing and service sectors. Further results revealed that only agricultural output improves human development and welfare among countries. The dynamic threshold regression analysis showed that FDI promotes output growth in all sectors with larger effect at levels beyond the optimal HDI. Conclusions Africa’s growth architecture is weak to stimulate poverty reduction. For the region to improve its sectoral output growth and welfare using the FDI as a catalyst, a policy framework towards attracting more FDI into the three key productive sectors (especially in the manufacturing and services) is desirable for increased output and poverty reduction. However, to achieve the desired level of poverty reduction, policies should be targeted to sectors with inter-sectoral linkages especially between agricultural and manufacturing sectors along the local and international value chain.

The Legal Framework for the Protection of Foreign Direct Investment in Ethiopia

2019 ◽  
pp. 741-762
Author(s):  
Won L. Kidane
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
The United States ◽  
Legal Framework ◽  
International Investment ◽  
International Investment Law ◽  
Domestic Legislation ◽  
Investment Law ◽  
Enforcement Mechanisms ◽  
Legal Frameworks

Historically, Ethiopia’s near-perpetual independent existence has uniquely permitted latitude to shape policy and legal frameworks for the admission, protection, and management of foreign direct investment (FDI). The contemporary legal framework is a product of many external influences. International investment law principles have been part of Ethiopia’s investment law since 1903, when Ethiopia signed the Treaty of Amity and Commerce with the United States. This treaty contained some modern notions of international. Following military rule (1974–91), during which all domestic and international principles of fairness and equity were abrogated, Ethiopia attempted to build a new legal framework for the ordering of FDI. The existing framework is composed of evolving domestic legislation and an increasing number of international bilateral and regional investment treaties. This corpus of law is also equipped with institutional enforcement mechanisms. This chapter provides an overview and critique of existing rules and institutions.

scholarly journals Foreign direct investment in the storm of the COVID-19 pandemic and the example of Visegrad countries

2021 ◽  
Vol 71 (S1) ◽  
pp. 73-92
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Policy Framework ◽  
Host Countries ◽  
Geographical Patterns ◽  
Investment Promotion ◽  
International Production ◽  
The Impact ◽  
Perfect Storm ◽  
Visegrád Countries

Abstract The immediate effects of COVID-19 on the global flows of foreign direct investment (FDI) were devastating, resulting in a large drop. Flows to the Visegrad countries were also affected but less than the world average. The fall in FDI was the result of underlying trends that started before the pandemic but accentuated by the latter, creating a “perfect storm”. These secular trends include the digitalisation of production and the birth of Industry 4.0, resulting in more asset-light international production and reorganisations of company networks, the sustainability imperative, making the impact of FDI more relevant than its quantity, and a slowdown in the liberalisation of the policy framework for FDI both in individual countries and at the multilateral level. The recovery of FDI from the shock of 2020 is expected to be long and it will be impossible to return to the pre-pandemic structural and geographical patterns. Building resilience and diversification of production at the expense of the search for the lowest-cost locations will be the top priorities of investors, forcing the host countries to revise their investment promotion strategies focused on cost reduction. In the Visegrad countries, the model based on low labour costs will sooner or later reach its limits.

scholarly journals Foreign Direct Investment Strategy in International Marketing: The Case of Turkey

2015 ◽  
Author(s):  
Mustafa Ercilasun ◽  
Ayşen Akyüz ◽  
Ayşe Saime Döner
Keyword(s):  
Foreign Direct Investment ◽  
Financial Stability ◽  
Direct Investment ◽  
Investment Strategy ◽  
Legal Framework ◽  
Foreign Direct Investments ◽  
Policy Recommendations ◽  
Investment Law ◽  
Year 2000

In recent years the role of foreign direct investments (FDIs) in economic development became very important for emerging economies. Thus, the competition to attract FDIs intensified. Turkey, being an emerging economy, needs to apply correct strategies to attract FDIs. This paper will consider competitive environment for FDIs around the world and evaluates steps taken by Turkey since the year 2000. In doing so, changing rules and regulations will be evaluated. After the experience of 2001 economic crisis, in 2003, Turkey passed Foreign Direct Investment Law and taken other actions to stimulate FDI’s coming to the country. Changes in economic environment, political situation, legal framework and financial stability play roles in bringing inflow of FDIs. This paper will focus on the case of Turkey and will provide policy recommendations to increase the competitiveness in attracting FDIs.

Sign in / Sign up

Export Citation Format

Share Document