Multilateral Trade Liberalisation and FDI: An Analytical Framework for the Implications for Trading Blocs

The proliferation of regional integration agreements (RIAs) over the past several years has led to significant changes in the global configuration of trade and investment activity. Multinational enterprises now face the prospect of multilateral trade liberalisation that could significantly affect the foreign direct investment (FDI) incentive structures that were established within the range of current RIAs. RIAs that provide preferential market access to member countries modify firms’ incentives to undertake FDI activities and can lead to various permutations of trade and investment creation and diversion. This article provides an analytical framework for understanding the implications of multilateral trade liberalisation for the incentive structures of firms to conduct FDI and discusses how multilateral liberalisation could undo many of the FDI activities that were initiated in response to previous RIAs.

Issue Date:
May 19 2010
Publication Type:
Journal Article
DOI and Other Identifiers:
1496-5208 (Other)
Record Identifier:
PURL Identifier:
Published in:
Estey Journal of International Law and Trade Policy, 11, 1
Page range:
Total Pages:
Series Statement:
Estey Centre Journal of International Law and Trade Policy
Volume 11, Number 1, Winter 2010

 Record created 2017-04-01, last modified 2020-10-28

Download fulltext

Rate this document:

Rate this document:
(Not yet reviewed)