The Impact of Bilateral Investment Agreements on Attracting Foreign Direct Investments

Petrović Ružica (), Jocić Dragana Radenković () and Kerković Tamara Milenković ()
Additional contact information
Petrović Ružica: University of Niš, Faculty od Economics, Republic of Serbia
Jocić Dragana Radenković: University of Niš, Faculty od Economics, Republic of Serbia
Kerković Tamara Milenković: University of Niš, Faculty od Economics, Republic of Serbia

Economic Themes, 2023, vol. 61, issue 2, 145-170

Abstract: Foreign investors' fear of expropriation led to the emergence of the idea of new ways of protection and adequate treatment of foreign investments on the international level. Primarily, the home countries wanted to protect their interests and became the main proponents of the creation of bilateral investment agreements. Developing countries that aspire to become and remain part of international economic flows, had to provide additional protection to investors, as investment host countries. They saw bilateral investment agreements as an opportunity to attract foreign direct investment. They provide a certain standard in the treatment and protection of investments and thus influence the creation of an environment that favors the transfer of capital from one country to another. In modern economic conditions, there are almost no entities that are absolutely risk-averse. For this reason, bilateral investment agreements are counted on to play one of the key roles in minimizing the risks of investing in developing countries.

Keywords: bilateral investment agreements; foreign direct investments; international investment law; multilateral investment agreements; protection of foreign investments; ICSID Convention (search for similar items in EconPapers)
JEL-codes: E22 F21 G11 (search for similar items in EconPapers)
Date: 2023
References: Add references at CitEc
Citations:

Downloads: (external link)
https://doi.org/10.2478/ethemes-2023-0008 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:vrs:ecothe:v:61:y:2023:i:2:p:145-170:n:1

DOI: 10.2478/ethemes-2023-0008

Access Statistics for this article

Economic Themes is currently edited by Marija Radosavljević

More articles in Economic Themes from Sciendo
Bibliographic data for series maintained by Peter Golla ().