Investment Treaties Boost FDI Inflows by Up to 8.87% - Study
The article examines how signing investment treaties affects foreign direct investment (FDI). The researchers found that simply signing these treaties doesn't directly increase investment, but it can improve the investment environment in the host country. This improvement can lead to a 7.04-8.87% increase in FDI compared to countries without such treaties. Additionally, countries that sign these treaties attract 5.02-5.5% more FDI from non-signatory countries. For example, if South Korea, China, and Japan sign a treaty, South Korea could see an additional 490.3-539.4 million from others.