Institutional Factors Affecting Foreign Direct Investment and Bilateral Investment Treaties
The present study attempts to investigate the institutional factors affecting bilateral or multilateral investment treaties with regard to foreign direct investment. This is an applied research based on descriptive and correlational approach. In order to test the postulated hypotheses, given the ava...
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Center for Development Research and Foresight
2023-08-01
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| Series: | پژوهشهای برنامه و توسعه |
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| Online Access: | https://www.journaldfrc.ir/article_180274_d210b33363569be51dce758aeb9eba5c.pdf |
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| author | Mostafa Heidari Haratemeh |
| author_facet | Mostafa Heidari Haratemeh |
| author_sort | Mostafa Heidari Haratemeh |
| collection | DOAJ |
| description | The present study attempts to investigate the institutional factors affecting bilateral or multilateral investment treaties with regard to foreign direct investment. This is an applied research based on descriptive and correlational approach. In order to test the postulated hypotheses, given the availability of data, 42 countries were considered for the period 2006-2021, and the PPML technique was applied using Eviews 13 within the framework of the gravity model. The results showed that investment treaties have a positive and significant effect on foreign direct investment, although this effect will be greater in the case of developing countries. Factors such as common language, market capacity, and distance also have a significant impact, whereas population and geographic proximity are not significant determinants for the flow of foreign direct investment except for the paired developing countries. In general, the empirical investigation demonstrated that a bilateral investment treaty acts as a signaling device, indicating that the host country is serious about protecting the investment. |
| format | Article |
| id | doaj-art-e1d01dc512474f8fbcd90831343e4e9c |
| institution | OA Journals |
| issn | 2645-7466 2717-0365 |
| language | fas |
| publishDate | 2023-08-01 |
| publisher | Center for Development Research and Foresight |
| record_format | Article |
| series | پژوهشهای برنامه و توسعه |
| spelling | doaj-art-e1d01dc512474f8fbcd90831343e4e9c2025-08-20T02:04:21ZfasCenter for Development Research and Foresightپژوهشهای برنامه و توسعه2645-74662717-03652023-08-014216719510.22034/pbr.2023.392560.1323180274Institutional Factors Affecting Foreign Direct Investment and Bilateral Investment TreatiesMostafa Heidari Haratemeh0Department of Economics, Naragh Branch, Islamic Azad University, Naragh, Iran.The present study attempts to investigate the institutional factors affecting bilateral or multilateral investment treaties with regard to foreign direct investment. This is an applied research based on descriptive and correlational approach. In order to test the postulated hypotheses, given the availability of data, 42 countries were considered for the period 2006-2021, and the PPML technique was applied using Eviews 13 within the framework of the gravity model. The results showed that investment treaties have a positive and significant effect on foreign direct investment, although this effect will be greater in the case of developing countries. Factors such as common language, market capacity, and distance also have a significant impact, whereas population and geographic proximity are not significant determinants for the flow of foreign direct investment except for the paired developing countries. In general, the empirical investigation demonstrated that a bilateral investment treaty acts as a signaling device, indicating that the host country is serious about protecting the investment.https://www.journaldfrc.ir/article_180274_d210b33363569be51dce758aeb9eba5c.pdfbilateral investment treatyforeign direct investmentgravity modelinstitutional qualityfree trade agreement |
| spellingShingle | Mostafa Heidari Haratemeh Institutional Factors Affecting Foreign Direct Investment and Bilateral Investment Treaties پژوهشهای برنامه و توسعه bilateral investment treaty foreign direct investment gravity model institutional quality free trade agreement |
| title | Institutional Factors Affecting Foreign Direct Investment and Bilateral Investment Treaties |
| title_full | Institutional Factors Affecting Foreign Direct Investment and Bilateral Investment Treaties |
| title_fullStr | Institutional Factors Affecting Foreign Direct Investment and Bilateral Investment Treaties |
| title_full_unstemmed | Institutional Factors Affecting Foreign Direct Investment and Bilateral Investment Treaties |
| title_short | Institutional Factors Affecting Foreign Direct Investment and Bilateral Investment Treaties |
| title_sort | institutional factors affecting foreign direct investment and bilateral investment treaties |
| topic | bilateral investment treaty foreign direct investment gravity model institutional quality free trade agreement |
| url | https://www.journaldfrc.ir/article_180274_d210b33363569be51dce758aeb9eba5c.pdf |
| work_keys_str_mv | AT mostafaheidariharatemeh institutionalfactorsaffectingforeigndirectinvestmentandbilateralinvestmenttreaties |