Abstract
There are more than 3000 bilateral investment treaties (BITs) in force. BITs are designed to facilitate foreign direct investment (FDI) and developing countries negotiate them as a strategy to attract FDI. BITs contain common denominators of free admission, fair treatment, non-expropriation and dispute resolution procedure which are the core components of an investment friendly regime. This article makes a proposition that even if a location does not have an ideal FDI legal system in conformity with the Perry-Kessaris Paradigm, it may still be attractive for foreign investment if there are BITs containing the substantive investment protection standards. The author refers to Iran as a case study which has signed more than 50 BITs with capital exporting and neighbouring countries to promote capital flows. Iran is a resource-rich country and its economy depends on foreign exchange revenues from petroleum exports. Therefore to attract FDI flows in the energy sector it should develop a legal framework that is investor friendly. BITs contain the blueprint for reforming FDI legal system to develop an investment friendly regime. This article for the first time provides a comprehensive review of Iranian BITs.
Original language | English |
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Pages (from-to) | 397-433 |
Number of pages | 37 |
Journal | The Journal of World Investment & Trade (JWIT) |
Volume | 14 |
Issue number | 3 |
Early online date | 1 Jan 2013 |
DOIs | |
Publication status | E-pub ahead of print - 1 Jan 2013 |