The effects of preferential trade agreements on foreign direct investment: evidence from the African Caribbean Pacific region

Gounder, Aruna and Falvey, Rodney and Rajaguru, Gulasekaran (2019) The effects of preferential trade agreements on foreign direct investment: evidence from the African Caribbean Pacific region. Open Economies Review, 30 (4). pp. 695-717. ISSN 0923-7992

PDF - Other Restricted to Registered users only Download (406kB)

Abstract

Our empirical analysis utilises panel data on bilateral FDI stocks from 34 OECD countries into 45 ACP countries over the period 2000–2017 to consider the role of PTAs in attracting FDI. We control for policies relating to trade, taxes and investment, along with other explanatory variables identified in the literature. We conclude the prevalence of market seeking FDI in the ACP region, with a role for regional integration in accessing surrounding market potential. We find no significant effect of PTAs on FDI in the Caribbean, while in Africa, the effects depend on the presence of a bilateral BIT.

Item Type:	Journal Article
Additional Information:	This paper was also presented at the Australian Conference of Economists: Economics for Better Lives, Sydney, Australia. 19-21 July 2017, Sofitel, Sydney
Subjects:	H Social Sciences > HB Economic Theory H Social Sciences > HJ Public Finance
Divisions:	Faculty of Business and Economics (FBE)
Depositing User:	Aruna Gounder
Date Deposited:	16 Feb 2022 23:59
Last Modified:	17 Feb 2022 00:03
URI:	https://repository.usp.ac.fj/id/eprint/12269

Actions (login required)

View Item