On Home Country Measures In International Investment Agreements

Most international negotiations on foreign direct investment (FDI) focus on issues involving the paired relationship between transnational corporations (TNCs) and host countries. TNCs desire access to foreign resources and markets to further their strategic global business objectives. Host countries desire FDI that promotes national economic and social objectives. Many host countries, including developing countries, adopt measures to attract FDI by, for example, improving their regulatory framework for FDI, enhancing educational programmes, or offering incentives. In reality, however, it does not only involve TNCs and host countries. Home countries also influence FDI flows, including the relative prospects that their TNCs will select developing country investment sites. The thesis carries out a study on provisions involving home country measures (HCMs) in existing international agreements related to investment and presents some suggestions as to how to improve HCMs in international investment agreements (IIAs) and promote FDI flow to the developing countries.This thesis consists of four parts:Part â…  discusses the identification of HCMs. It focuses on the classification of HCMs and analyzes the character of HCMs in international agreements.Part â…¡ reveals defects of existing HCMs in international community. It makes an in-depth analysis on provisions involving HCMs in existing international agreements as well as practices of institutions in developed countries, and analyzes defects of existing HCMs.Part III expatiates countermeasures to improve provisions involving HCMs in IIAs. In this part, the author presents some suggestions concerning the improvement of provisions regarding HCMs in IIAs.Part V makes an objective analysis of the attitude towards HCMs which should be adopted by China. It analyzes how does China deal with problems related to HCMs as a host country and a home country.