Common Contracts
1 similar Multilateral Agreement on Investment contracts
A Multilateral Agreement on Investment in Regulating FDI Incentive ProgramsMultilateral Agreement on Investment • November 4th, 2013
Since 1990s, developing countries have tried to attract more foreign direct investment (FDI) to overcome a shortage of domestic capital stock and investment by providing various incentives. In a real world, however, most developing countries, interested in FDI, are using very similar policy tools and in a race to the bottom, likely leading them to be actually worse off. MNCs mostly from developed countries have different concerns in this field. To protect commercial interests of MNCs from any irrational policy of host countries, developed countries emphasize needs of setting multilaterally agreed disciplines on FDI-related measures. Developing countries argue that a multilateral agreement on investment will harm autonomy and sovereignty of developing countries in tailoring its own system to meet its own demands of economic development. Therefore, the main objective of this paper is to explore strategic relationships among developing countries and MNEs and to analyze how an MAI changes
