Assessing the Case for Extending WTO Disciplines on Investment-Related Policies

Hoekman, Bernard; Saggi, Kamal

doi:2000.15.4.630

Journal of Economic Integration 2000 December;15(4) :630-653.
DOI: https://doi.org/10.11130/jei.2000.15.4.630

Assessing the Case for Extending WTO Disciplines on Investment-Related Policies

Bernard Hoekman, Kamal Saggi

World Bank
Southern Methodist University

ABSTRACT

In this paper we evaluate the potential benefits of international disciplines on policies towards foreign direct investment, paying particular attention to developing countries. We conclude that, at present, the case for initiating negotiations on investment policies is weak. Negotiations that center on improving market access on a nondiscriminatory basis, especially in services, are likely to be more fruitful: although imperfect, existing multilateral instruments such as the General Agreement on Trade in Services, are far from fully exploited and provide significant opportunities for governments to improve market access.

Keywords: Foreign Direct Investment | Wto | Multilateral Trade Negotiations

REFERENCE

1.	Francois, J. (1999), "Maximizing the Benefits of the Trade Policy Review Mechanism for Developing Countries," mimeo (www.worldbank.org/trade).

2.	Glass, A. J., and Saggi, K. (1999a), "FDI Policies under Shared Factor Markets," Journal of International Economics 47(2), 1015-1038.