<abstract xmlns="http://www.w3.org/1999/xhtml">
<p>Foreign investors' fear of expropriation led to the emergence of the idea of new ways of protection and adequate treatment of foreign investments on the international level. Primarily, the home countries wanted to protect their interests and became the main proponents of the creation of bilateral investment agreements. Developing countries that aspire to become and remain part of international economic flows, had to provide additional protection to investors, as investment host countries. They saw bilateral investment agreements as an opportunity to attract foreign direct investment. They provide a certain standard in the treatment and protection of investments and thus influence the creation of an environment that favors the transfer of capital from one country to another. In modern economic conditions, there are almost no entities that are absolutely risk-averse. For this reason, bilateral investment agreements are counted on to play one of the key roles in minimizing the risks of investing in developing countries.</p>
</abstract>

Foreign investors' fear of expropriation led to the emergence of the idea of new ways of protection and adequate treatment of foreign investments on the international level. Primarily, the home countries wanted to protect their interests and became the main proponents of the creation of bilateral investment agreements. Developing countries that aspire to become and remain part of international economic flows, had to provide additional protection to investors, as investment host countries. They saw bilateral investment agreements as an opportunity to attract foreign direct investment. They provide a certain standard in the treatment and protection of investments and thus influence the creation of an environment that favors the transfer of capital from one country to another. In modern economic conditions, there are almost no entities that are absolutely risk-averse. For this reason, bilateral investment agreements are counted on to play one of the key roles in minimizing the risks of investing in developing countries.

The Impact of Bilateral Investment Agreements on Attracting Foreign Direct Investments

Economic Themes

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Foreign investors' fear of expropriation led to the emergence of the idea of new ways of protection and adequate treatment of foreign investments on the...

The Impact of Bilateral Investment Agreements on Attracting Foreign Direct Investments

Published Online: Sep 14, 2023

Page range: 145 - 170

Received: Mar 04, 2023

Accepted: May 10, 2023

DOI: https://doi.org/10.2478/ethemes-2023-0008

Keywords
bilateral investment agreements, foreign direct investments, international investment law, multilateral investment agreements, protection of foreign investments, ICSID Convention

© 2023 Ružica Petrović et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

The Impact of Bilateral Investment Agreements on Attracting Foreign Direct Investments

Published Online: Sep 14, 2023

Page range: 145 - 170

Received: Mar 04, 2023

Accepted: May 10, 2023

DOI: https://doi.org/10.2478/ethemes-2023-0008

Keywordsbilateral investment agreements, foreign direct investments, international investment law, multilateral investment agreements, protection of foreign investments, ICSID Convention

© 2023 Ružica Petrović et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Keywords
bilateral investment agreements, foreign direct investments, international investment law, multilateral investment agreements, protection of foreign investments, ICSID Convention