Commitment to Rules on Investment: The Developing Countries’ Stake

James Markusen

Review of International Economics, 2001, vol. 9, issue 2, 287-302

Abstract: This study examines foreign direct investment into developing countries, and the stake those countries have in liberalizing or restricting these long‐term investments. Of particular interest is the stake the developing countries might have in committing to codes or multilateral agreements on investments. Clear advantages to commitment are identified, involving attracting investments that would not occur otherwise. But disadvantages are also identified, involving the possible loss of rents to host countries that might have been captured in the absence of binding codes.

Date: 2001
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