This paper studies two different approaches to international
investments: The
multilateral approach, which is favored by developed nations and the
bilateral approach, which is favored by developing nations. As the paper explains, since the negotiations on MAI (Multilateral
Agreement on Investments) fell apart, the developed world has been attempting to renew the effort through the other world bodies like WTO. This paper examines which of the above approaches is most suited to the world and in particular to the developing countries. The paper also asks whether a multilateral approach will necessarily lead to increased global FDI inflows. This paper ultimately proves that one size does not fit all, since investments are too sensitive and complicated to be governed by an umbrella agreement covering the entire world. Thus, the paper concludes, the WTO's attempt to address non-commercial factors through a multilateral agreement may not be worthwhile. Further, the paper recommends that if the WTO is to increase FDI, it should continue to concentrate on trade rather than bringing investments under a multilateral arrangement. Table of Contents: Acknowledgements List of Tables List of Figures List of Appendices Introduction Need for Study Objectives Hypothesis Limitations Chapterization Literature Review Theories on International Trade Theories on FDI What factors determine the FDI? Is Global FDI Tariff Jumping? Multilateralism & Bilateralism The Doha Round The Cancun & Hong Kong Round India's Reservation on WTO Methodology Methodology Source Assumptions Expected Outcome Results & Findings Findings from Time Series Data Findings from Cross Section Data Conclusions & Policy Recommendations Suggested Areas for Further Research Bibliography End Notes Tables Figures Appendices