Economics, Econometrics and Finance
4 years ago

Preferential trade agreements boost foreign investment inflows, driving economic growth.

Beyond trade : the impact of preferential trade agreements on foreign direct investment inflows
Denis Medvedev

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Preferential trade agreements (PTAs) can increase foreign direct investment (FDI) inflows for member countries. The size and proximity of PTA partners play a role in boosting FDI gains. Both signing the agreement and joining a larger common market can positively impact FDI. The effects are most significant in North-South PTAs, especially in the late 1990s and early 2000s. Deep integration PTAs have a notable influence on FDI inflows during this period.