Abstract:
Bilateral Investment Treaties (BITs) are legal instruments
which safeguard the interest of investors and help to
promote Foreign Direct Investment (FDI) in developing
countries. This study analysed 19 Asian economies which
had a relationship with 50 source countries from 2001-14,
and found that BITs are an important determinant in
promoting FDI inflows in these Asian countries.
Specifically, it was noted that BITs seem to promote FDI
inflows in the East and South East Asian countries, but had
no influence on inflows in the South and West Asian ones.
Moreover, this study found no relationship between BITs
and FDI inflows in small-sized economies. In addition, the
Gross Domestic Product (GDP) of the source country,
distance between the countries, Regional Trade
Agreements (RTAs), and the institutional quality of the
countries were considered as important variables in
attracting FDI inflows
