Analysis and prospects for implementation of the investment liberalization regime in the world economy

Abstract

The article assesses a signifcance of the most important component of the agreement on accession to the WTO, namely the agreement on trade-related investment measures (TRIMs), in increasing the attractiveness of developing countries to investors from abroad. In addition, traditional determinants of FDI placement, such as the macroeconomic stability, trade openness, and economic development, are considered. The authors carry out an analysis in the feld of regulation of TRIMs by the example of economic policies in developing countries. The study shows that the extent to which TRIMs contributed to achieving the goals varied signifcantly, reflecting the specifc economic and political conditions of the country using them. In some cases, they played a role in encouraging foreign companies to make more use of local sources or increase their exports from the host country. In other cases, the impact seemingly was negligible.