Mitsuo Inada, Naoto Jinji, 10 September 2020

Policy uncertainty is believed to affect foreign direct investment significantly, but, empirical evidence on the impact is scarce. This column proposes a unique empirical strategy for identifying the impact of a change in policy uncertainty on FDI at the sector level by utilising information about reservations of certain obligations contained in international investment agreements. It provides evidence that policy uncertainty discourages FDI. Policy uncertainty will continue to rise in the post-COVID-19 era, and the results highlight the importance of aligning globalisation with the mitigation of public health threats by implementing policies to reduce uncertainty.

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We invite submissions of papers and expressions of interest in attending the Second Empirical Investigations in Services Trade (EIST) conference. The meeting will take place on June 15-16 in Florence, Italy, hosted by the Global Governance Programme of the Robert Schuman Centre, European University Institute.

The theme of the conference is economic analysis of trade and investment in services. We welcome submissions related to any aspect of international trade and investment in services, including empirical analyses of sectoral policy and regulation and trade and investment agreements, analysis using firm-level data, and papers on the role of services in value chains.

Eric Neumayer, Peter Nunnenkamp, Martin Roy, 01 August 2014

Hoping to attract more FDI, developing countries are increasingly entering stricter investment agreements. But there is no conclusive evidence that such agreements serve them well. This column argues that contagion may help explain this trend. Competition between developing countries for FDI from developed ones could drive the diffusion of international investment agreements.

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CEPR Policy Research