The Analysis Of Investment Promotion Effect From Bilateral Investment Agreements

Foreign direct investment increase rapidly in the past 30 years. Hence Strengthen international investment laws and regulations so as to promote a stable international direct investment becoming an important study field of international economic. And countries actively participate in bilateral investment agreements have become an inevitable choice. Although there are different purpose of countries when they signed BITs, but the effect of BITs for different countries are differently. Therefore, studying the impact of BITs on the FDI has important theoretical and practical significance. In this article we discusses the comprehensive influence of bilateral investment treaties (BITs) on FDI from theory literature and empirical literature aspects. And also discusses effect of other factors which with BITs to promote FDI. In the introductory section we introduce the purpose and significance of this paper and summarizes the research methods and innovations. The next part of the literature we review the theoretical literature and empirical literature. From the examineing of related literature we obtain theoretical foundation and empirical basis. In Second, we present a brief description of bilateral investment treaties (BITs) and characteristics of the development process. Explore the development trend of bilateral investment agreements, so as to lay the foundation for our theoretical and empirical analysis. Third, we use empirical analysis of econometric models to analysis the impact of BITs on FDI from OECD countries and developing countries respectively, and analyze the reasons of the variety factors (including BITs) affect FDI. For China, we study with two aspects, on the one hand we discuss the change of investment policy from China's reform and opening to now and the effect of signing of BITs on FDI, on the other hand, with China's further participation in international economic activities, china's outward foreign direct investment appear significant growth, in this paper we discusses the effect on China's outward foreign direct investment when china signed BITs with different destination countries and regions. This study have a reference value for China attracting foreign investment and outward foreign investment policies. Finally, we present the policy recommendations in the conclusions, and analysising the Practical problems of the bilateral investment agreements, we also put forward the countermeasure when china participate in BITs signature.