Foreign Direct Investment
Introduction
Foreign Direct Investment (FDI) is a category of investment that reflects the objective of establishing a lasting interest by a resident enterprise in one economy in an enterprise that is resident in an economy other than that of the direct investor. The lasting interest implies the existence of a long-term relationship between the direct investor and the direct investment enterprise and a significant degree of influence on the management of the enterprise. Basic forms of FDI are investment made to develop a production or manufacturing plant from the ground up (“greenfield investments”), mergers and acquisitions, and joint ventures. Three components of FDI are usually identified: equity capital, reinvested earnings, and intracompany loans.
FDI is considered to be both an important indicator and a driving force of what is called economic globalization. The growth of FDI has been facilitated by various political actors, including national governments and international organizations. FDI inflow is considered as a crucial presupposition of economic development. FDI has potentially both positive and negative effects on host economies. These effects depend on a number of factors, including a host economy’s level of development, the type of investment, and the position of the particular investment site in the investor’s business strategy.
The International Centre for Settlement of Investment Disputes (ICSID) is an autonomous international institution established under the Convention on the Settlement of Investment Disputes between States and Nationals of Other States. The primary purpose of ICSID is to provide facilities for conciliation and arbitration of international investment disputes. The ICSID Convention is a multilateral treaty formulated by the Executive Directors of the International Bank for Reconstruction and Development (the World Bank). It was opened for signature on March 18, 1965 and entered into force on October 14, 1966.
Although ICSID is considered to be the leading international arbitration institution devoted to investor-State arbitration, the Transatlantic Trade and Investment Partnership (TTIP) agreement between the European Union and the United States included an investor-state dispute settlement (ISDS) mechanism, whereby individual foreign investors may bring claims against host state governments for breach of the TTIP’s investment protection standards. This ISDS system is comparable to what has been included in agreements such as the Comprehensive Economic and Trade Agreement (CETA) between the EU and Canada, the North American Free Trade Agreement (NAFTA 'Chapter 11'), and the Central American Free Trade Agreement (CAFTA-DR).
This Research Guide is intended as a starting point for research in the field of Foreign Direct Investment (FDI). It provides the basic legal materials available in the Peace Palace Library, both in print and electronic format. Handbooks, leading articles, bibliographies, periodicals, serial publications and documents of interest are presented in the Selective Bibliography section. Links to the PPL Catalogue are inserted. The Library's systematic classification → Public international law and subject heading (keyword) Foreign Direct Investment are instrumental for searching through the Catalogue. Special attention is given to our subscriptions on databases, e-journals, e-books and other electronic resources. Finally, this Research Guide features links to relevant websites and other online resources of particular interest.
New titles
As we are right in the middle of moving to a new library system, it is not yet possible to automatically collect new titles for this Research Guide.Bibliography
Reference works
- Bungenberg, M., J. Griebel and S. Hindelang, International Investment Law and EU Law, Heidelberg, Springer, 2011.
- Douglas, Z., J. Pauwelyn, and J.E. Viñuales (eds.), The Foundations of International Investment Law : bringing Theory into Practice, Oxford, Oxford University Press, 2014.
- Grubenmann, B., Der Begriff der Investition in Schiedsgerichtsverfahren in der ICSID-Schiedsgerichtsbarkeit, Basel, Helbing Lichtenhahn, 2010.
- Hober, K., Investment Treaty Arbitration: Problems and Exercises, Northampton, MA, USA, Edward Elgar Publishing, 2018.
- Kahn, P. et T.W. Wälde, Les aspects nouveaux du droit des investissements internationaux, La Haye, Académie de droit international de La Haye, 2007.
- Nanteuil, A. de, Droit international de l'investissement, Paris, Pedone, 2017.
- Schreuer, C.H., The ICSID Convention: A Commentary: A Commentary on the Convention on the Settlement of Investment Disputes between States and Nationals of Other States, Cambridge, Cambridge University Press, 2009.
- Shan, W. (ed.), The Legal Protection of Foreign Investment: A Comparative Study, Oxford, Hart, 2012.
- Yannaca-Small, K. (ed.), Arbitration under international investment agreements: a guide to the key issues, Oxford, Oxford University Pres, 2018. [e-book]
Books
-
Baltag, C. (ed.), ICSID Convention after 50 Years: Unsettled Issues, Alphen aan den Rijn, Kluwer Law International B.V, 2017. [e-book]
- Binder, C. (et al.) (eds.), International Investment Law for the 21st Century: Essays in Honour of Christoph Schreuer, New York, Oxford University Press, 2009.
- Cleis, M.N., The independence and impartiality of ICSID arbitrators: current case law, alternative approaches, and improvement suggestions, Leiden, Brill Nijhoff, 2017. [e-book
-
Ebert, B.P., Forum Shopping in International Investment Law: Forum Planning, Forum Enhancement, and Facilitation of Procedure - Assessment and Limits, Tübingen, Mohr Siebeck, 2017.
- Gazzini, T., Interpretation of International Investment Treaties, Oxford, Hart Publishing, 2016.
- Kalicki, J.E. and Joubin-Bret, A. (eds.), Reshaping the Investor-State Dispute Settlement System: Journeys for the 21st Century, Leiden, Boston, Brill Nijhoff, 2015. [e-book]
- Kurtz,J., The WTO and International Investment Law: Converging Systems, Cambridge, Cambridge University Press, 2016. [e-book]
- Lalani, S. and Polanco, R. (eds.), The Role of the State in Investor-State Arbitration, Leiden, Boston, Brill Nijhoff, 2015. [e-book]
- Manciaux, S., Investissements étrangers et arbitrage entre états et ressortissants d'autres états: trente années d'activité du CIRDI, Paris, Litec, 2004.
- McLachlan, C., Shore, L. and Weiniger, M., International Investment Arbitration: Substantive Principles, Oxford, Oxford University Press, 2017.
- Sasson, M., Substantive law in investment treaty arbitration: the unsettled relationship between international law and municipal law, Alphen aan den Rijn, Kluwer Law International, 2017.
- Sauvant, K.P. and L.E. Sachs, The Effect of Treaties on Foreign Direct Investment, New York, NY, Oxford University Press, 2009.
- Shan,W. and Su, J. (eds.), China and International Investment Law : Twenty Years of ICSID Membership, Leiden, Boston, Brill Nijhoff, 2015.
- Sornarajah, M., The International Law on Foreign Investment, Cambridge, Cambridge University Press, 2017.
- Wandahl Mouyal, L., International Investment Law and the Right to Regulate: a Human Rights Perspective, London, Routledge, 2016.
- Yen, T.H., The Interpretation of Investment Treaties, Leiden, Boston,Brill Nijhoff, 2014.
Leading articles
- Chaisse, J., "The Shifting Tectonics of International Investment Law - Structure and Dynamics of Rules and Arbitration on Foreign Investment in the Asia-Pacific Region", 47 (2015) The George Washington International Law Review, No. 3, pp. 563-638.
- Ding, J., "Enforcement in International Investment and Trade Law: History, Assessment, and Proposed Solutions", Georgetown Journal of International Law, 47 (2016), No.3, pp. 1137-1165.
- Hayek, I.E. and Gilles, A., "Multifaceted Settlement of International Investments Disputes: Thoughts about the Variety of Instuments Claiming Their Applicability to the Investment Dispute", ICSID Review : Foreign Investment Law Journal, 29 (2014), No. 3, pp.567-594.
- Li, F., Safeguarding State Sovereignty : The Relevance of Post-Award Remedies in ICSID and Non-ICSID Arbitration, German Yearbook of International Law, 58 (2016), pp. 353-378.
- Manciaux, S., "The Representation of States Before ICSID Tribunals", Journal of International Dispute Settlement, 2 (2011), No. 1, pp. 87-96.
- Quick, R., "Why TTIP Should Have an Investment Chapter Including ISDS", Journal of world trade: law, economics, public policy, 49 (2015), No. 2, pp. 199–209.
- Ratner, S.R., "Compensation for Expropriations in a World of Investment Treaties: Beyond the Lawful/Unlawful Distinction", American Journal of International Law, 111 (2017) No. 1, pp. 7-56.
- Robert-Cuende, S., "Crise ou renouveau du droit des investissements internationaux? Réflexions sur l'objet des mécanismes de protection des investisseurs étranger", Revue générale de droit international public, 120 (2016), No.3, pp. 545-578.
- Schill, S.W., The European Commission’s Proposal of an “Investment Court System” for TTIP: Stepping Stone or Stumbling Block for Multilateralizing International Investment Law? 20 ASIL Insights No. 9 (22 April 2016)
- Sornarajah, M., "The Past, Present and Future of the International Law on Foreign Investment", in: Wenhua Shan and Jinyuan Su (eds.), China and International Investment Law : Twenty Years of ICSID Membership (2015), 23-55.
- Titi, C., "Most-Favoured-Nation Treatment: Survival Clauses and Reform of International Investment Law", Journal of international arbitration, 33 (2016), No. 5, pp. 425-440.
- Trakman, L.E. and Musayelyan, D., "The Repudiation of Investor-State Arbitration and Subsequent Treaty Practice: The Resurgence of Qualified Investor-State Arbitration", ICSID review: foreign investment law journal, 31 (2016), No. 1, pp. 194-218.
Documents
- Gaillard, E., La jurisprudence du CIRDI, Paris, Pedone, 2004.
- ICSID Convention, Rules and Regulations
- Paparinskis, M. (ed.), Basic Documents on International Investment Protection, Second edition, Oxford, Hart Publishing, 2019.
Periodicals, serial publications
- Arbitraje: Revista de arbitraje comercial y de inversiones
- ICSID Reports
- ICSID Review: Foreign Investment Law Journal
Bibliographies
- Kost, I.L. and M. Statius Muller, "Selected Bibliography on International Investment Law", Austrian Review of International and European Law, 13 (2008), pp. 469-497.
- Statius Muller, M. and H. Thyssen, "Selected Bibliography on International Investment Law", New Aspects of International Investment Law, Leiden, Nijhoff, 2007, pp. 853-987.
New titles
Librarian's choice
Islam, R., The Fair and Equitable Treatment (FET) Standard in International Investment Arbitration: Developing Countries in Context, Springer, 2019.
View this title in our discovery serviceThis book presents comprehensive information on a range of issues in connection with the Fair and Equitable Treatment (FET) standard, with a particular focus on arbitral awards against host developing countries, thereby contributing to the available literature in this area of international investment law. It examines in detail the interpretation of the FET standard of key arbitral awards affecting host developing countries, demonstrating the full range of interpretation approaches adopted by the current investment tribunals. At the same time, the book offers valuable practical guidance for counsels/scholars representing host developing countries in investment arbitration, where balancing the competing interests of the foreign investors and the host developing countries in investment disputes poses a complex challenge.
Malintoppi, L. and Tan, C. (eds.), Investment Protection in Southeast Asia : a Country-by-Country Guide on Arbitration Laws and Bilateral Investment Treaties, Leiden, Brill Nijhoff, 2017.
View this title in our discovery serviceInvestment Protection in Southeast Asia : a Country-by-Country Guide on Arbitration Laws and Bilateral Investment Treaties is a vital reference guide to investment protection in the region, providing succinct answers to the main questions that investors may consider in connection with investments in a given jurisdiction. Each country chapter covers arbitral legislation and institutions in the country, investment-related domestic laws, an analysis of its bilateral investment treaties, and a summary of investment cases involving the relevant State or its investors.
Collins, D., An Introduction to International Investment Law, Cambridge, Cambridge University Press, 2017.
View this title in our discovery serviceThis insightful and accessible introduction provides students and practitioners with a comprehensive overview of the increasingly important discipline of international investment law. Focusing primarily on the legal principles contained in the growing body of international investment agreements, this book covers the core concepts of the discipline with attention given to their relation to each other and to the manner in which they have been developed through arbitration case law. The context of each legal principle is explored along with a consideration of some of the major debates and emerging criticisms. Avoiding extensive case extracts, this book adopts an engaging and succinct narrative style which allows readers to advance their understanding of the topic while examining the legal principles with academic rigour and discerning commentary.
Kinnear, M.N., G.R. Fischer, J. Mínguez Almeida, L.F. Torres Arias and M. Uran Bidegain (eds.), Building International Investment Law: the First 50 Years of ICSID, Alphen aan den Rijn, Kluwer Law International, 2016.
View this title in our discovery serviceThe International Centre for Settlement of Investment Disputes (ICSID) is the premier international investment arbitration facility in the world. This volume celebrates the first 50 years of ICSID by presenting the landmark cases that have been decided under its auspices. These cases have addressed every aspect of investment disputes: jurisdictional thresholds; the substantive obligations found in investment treaties, contracts, and legislation; questions of general international law; and a number of novel procedural issues. Each chapter, written by a knowledgeable expert on the chapter’s particular focus, looks at an international investment law topic through the lens of one or more of these leading cases, analysing what the case held, how it has been applied, and its overall significance to the development of international investment law.
Database
- Chronological Listing International Investment Arbitral Awards
- Digest of International Investment Jurisprudence
- EISL Regulation on Foreign Investment
- International Centre for the Settlement of Investment Disputes (ICSID), Database of Bilateral Investment Treaties
- Investment Arbitration Reporter (IA Reporter)
- Oxford Reports on International Law Investment Claims
- Investor-State LawGuide
- Max Planck Encyclopedia of Public International Law, Investment
Blogs
Peace Palace Library: International Arbitration update
This blog gives an overview on updates concerning international arbitration in the Peace Palace Library collection. This includes new titles of the Oxford International Arbitration Series. The series publishes books of quality and originality on subjects of practical importance in modern international arbitration, focusing on emerging topics. Further on the Research Guide on international arbitration is mentioned and the Peace Palace Library Databases on international arbitration.
Read moreInvestment Protection: ISDS or ICS?
In the 1990s, European member states have concluded about 200 bilateral investment treaties (BITs) with Eastern European countries. For example, the Netherlands has BITs with Poland, the Baltic States, Slovakia and Czech Republic. Now most of these Eastern European countries are member states of the European Union themselves, the European Commission wants to put an end to the intra-EU bilateral investment treaties (BITs): agreements concluded between EU member states. If these agreements are terminated, there is a risk that European investors will not be strongly and adequately protected under the provisions currently included in the single market.
Read moreP.R.I.M.E. Finance : Open for business!
On 16 January 2012, the P.R.I.M.E. Finance Foundation has started its activities with an opening conference followed by seminars on Dispute Resolution in the Financial Markets in the Peace Palace in The Hague. The Foundation oversees the activities of its Panel of Recognized International Market Experts in Finance (P.R.I.M.E. Finance), chosen for their relevant experience in financial market practice or […]
Read more
Links
- International Centre for Settlement of Investment Disputes
- International Investment Law Centre Cologne
- Investment Treaty Arbitration
- Foreign Trade Information System about Investment, National Legislation
- ISDS in the TTIP: the Devil is in the Details by E. Fabry and G. Garbasso (Jacques Delors Institute Policy Paper 122, 16 January 2016)