Deep Trade Agreements Boost Foreign Investment by 54% Between Countries
The study looked at how trade agreements affect foreign investment between countries. They found that deeper trade agreements, which include more rules like investment and intellectual property rights, lead to more foreign investment. For example, the deepest trade agreement can increase foreign investment by 54%. They also found that domestic policies can affect how easy it is for foreign investment to happen. For instance, the economic agreement signed by some countries in 2012 had a big impact on foreign investment.