Publication:
Deep Trade Agreement and Foreign Direct Investments

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dc.contributor.authorLaget, Edith
dc.contributor.authorRoch, Nadia
dc.contributor.authorVarela, Gonzalo
dc.date.accessioned2021-11-04T16:32:52Z
dc.date.available2021-11-04T16:32:52Z
dc.date.issued2021-11
dc.description.abstractPreferential trade agreements are growing in number and deepening in content by incorporating disciplines that go beyond market access. They increasingly encompass non-trade-related disciplines as diverse as intellectual property rights, environment laws, or labor market regulations. Moreover, because investment is complementary to trade, preferential trade agreements provide relevant institutional frameworks to partner countries that wish to regulate their foreign investments. This paper studies the impact of deep trade agreements on foreign direct investment and examines three sub-questions. First, is the impact of trade agreements on foreign direct investment heterogeneous across types of business activity Second, is this impact heterogeneous across disciplines covered in the agreements Third, does the level of development of home and host countries matter for this impact The analysis exploits the World Bank’s data set on the content of preferential trade agreement and data on announcements of bilateral greenfield investment at the activity level. The findings show that deep trade agreements matter for investment: every additional discipline in a preferential trade agreement increases foreign direct investment by 1.4 percent, on average. Deep agreements do not impact foreign direct investment in natural resources and extractive activities and have heterogeneous effects across manufacturing- and services-related activities. The results also reveal that disciplines that go beyond the mandate the World Trade Organization matter more for foreign direct investment. Disciplines related to investment liberalization and protection, intellectual property rights, or migration increase foreign direct investment, whereas disciplines on labor market regulations reduce investment. The results are mostly driven by investment between developed and developing countries.en
dc.identifierhttp://documents.worldbank.org/curated/undefined/750331635791488049/Deep-Trade-Agreement-and-Foreign-Direct-Investments
dc.identifier.doi10.1596/1813-9450-9829
dc.identifier.urihttps://hdl.handle.net/10986/36480
dc.languageEnglish
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper;No. 9829
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo
dc.subjectTRADE AGREEMENTS
dc.subjectFOREIGN DIRECT INVESTMENT
dc.subjectDEEP INTEGRATION
dc.subjectREGIONALISM
dc.subjectPREFERENTIAL TRADE AGREEMENTS
dc.subjectREGIONAL TRADE INTEGRATION
dc.subjectREGIONAL TRADE AGREEMENT
dc.titleDeep Trade Agreement and Foreign Direct Investmentsen
dc.typeWorking Paperen
dc.typeDocument de travailfr
dc.typeDocumento de trabajoes
dspace.entity.typePublication
okr.crossref.titleDeep Trade Agreement and Foreign Direct Investments
okr.date.disclosure2021-11-01
okr.date.doiregistration2025-04-10T11:13:24.375943Z
okr.date.lastmodified2021-11-01T00:00:00Zen
okr.doctypePublications & Research
okr.doctypePublications & Research::Policy Research Working Paper
okr.docurlhttp://documents.worldbank.org/curated/undefined/750331635791488049/Deep-Trade-Agreement-and-Foreign-Direct-Investments
okr.guid750331635791488049
okr.identifier.doi10.1596/1813-9450-9829
okr.identifier.externaldocumentum090224b088b0787f_1_0
okr.identifier.internaldocumentum33568775
okr.identifier.reportWPS9829
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/750331635791488049/pdf/Deep-Trade-Agreement-and-Foreign-Direct-Investments.pdfen
okr.topicInternational Economics and Trade::Foreign Direct Investment
okr.topicInternational Economics and Trade::Globalization and Financial Integration
okr.topicInternational Economics and Trade::International Trade and Trade Rules
okr.topicInternational Economics and Trade::Trade Finance and Investment
okr.topicInternational Economics and Trade::Trade and Regional Integration
okr.unitMacroeconomics, Trade and Investment Global Practice
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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