This new report outlines the broad features of alternative policy approaches to foreign direct investment (FDI) and the policy perspectives embedded in IIAs. It provides a critique of IIAs with respect to their structure and core provisions, particularly investor-state dispute settlement provisions. The paper also provides an overview of the results of studies on the relationship between IIAs and FDI flows, underlining that most studies are unable to demonstrate a clear relationship between signing IIAs and receiving greater flows of FDI. At best, the relationship is ambiguous, and IIAs are neither necessary nor sufficient to attract FDI, according to the author.

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