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The Importance of Defining Property Rights in Free Trade Agreements on Foreign Direct Investment

Lorenza Martínez Trigueros and Roberto Romero Hidalgo

No 2004-02, Working Papers from Banco de México

Abstract: This paper analyzes the negative effect of a weak property rights enforcement on Foreign Direct Investment (FDI), as well as the role of bilateral agreements as an alternative to counteract this effect. This positive contribution takes place not only by its effect on commercial flows but also because these agreements can improve the property rights enforcement.

Keywords: Foreign Direct Investment; Property Rights; Bilateral Free Trade Agreements (search for similar items in EconPapers)
JEL-codes: F13 F15 F21 F53 (search for similar items in EconPapers)
Date: 2004-06
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