Beyond Trade The Impact Of Preferential Trade Agreements On Fdi Inflows

The challenges of this hypothesis argue that the negative effects of higher FDI standards are offset by other positive effects on producer prices. According to Kucera (2002), labour standards should improve worker satisfaction and productivity. Gender equality, social stability and overall improvement in the quality of work could attract investors (Kucera 2002). In addition, multinationals could benefit from environmental protection standards. Given technology, innovation and customer demands, environmental legislation could directly promote i0 (Palmer et al. 1995; Porter 1991). In the environmental field, for example, leading companies can gain comparative advantages (Reinhardt 1998). Rivera 2002). Especially since companies in countries with strict standards are moving to countries that have recently updated their standards. “A party must not fail to effectively enforce its environmental legislation.

. . . The parties recognize that it is inappropriate to promote trade or investment by weakening or reducing the protection of national environmental legislation” (Article 17.2 CAFTA-DR). Sixth, I appreciate a model without the variable economic depth. Because of the positive correlation between economic depth and NTIs in PTAs (r -0.19), the multicolonic problem is a plausible concern. The results remain stable with or without depth. Seventh, I appreciate a broader model in which I have GDP, population size and geographic distance from the United States. In addition, the existence of bilateral investment contracts (ILOs) between the United States and Dener`s partner countries is the model to be taken into account. Since 1945, the United States has signed 43 ILOs, 38 of which have entered into force.

I coded all these agreements with regard to NTIs and found only two ILOs with essential NTIs clauses, namely the ILO with Rwanda, which was signed in 2008, and the ILO with Uruguay, which was signed in 2006. They are also the two most recent ILOs in the United States. I give a value of 2 for an inforce-ILO with NTI and a value of 1 for an inforce-BIT without NTIs. Even after controlling these four additional variables, the size and level of significance of the main explanatory variables remain stable. Third, I`m changing the sample. Instead of all the real and potential partners of the United States, I use only one example of true PTA partners in the United States. Both the impact on the environment and the assumption of work equipment remain constant in terms of size and importance after these changes. Rickard, S. J., Kono, Y.D. (2014).

Global think, buy local: international agreements and public procurement. The Review of International Organizations, 9 (3), 333-352. Investors are the beneficiaries of tax and tariff reductions. Due to the increasing complexity of EDPs, they may face problems that go beyond investment and trade.

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