FDI, Legal Regime, ICSID, Arbitration, Treaty.
25 November 2020
Foreign Direct Investment (FDI) is a potent weapon of economic growth, especially in the current global context. Economic development for the Least Developed Countries (LDC) or developing countries like Bangladesh is mostly dependent on FDI, which remained insignificant until 1993s. In the past twenty years, FDI has become the main focus for Bangladesh, and despite the FDI receptive strategies of the government; arguably, the result achieved so far as is not highly appreciable enough for Bangladesh. Previous Research primarily relied on investigating the impact of certain macroeconomic variables on FDI and thus has been unable to extricate challenges faced by Foreign Investors. To test this gap, laws and policies have been chosen, from the different variables of FDI, as the vital ones. We used nominal and ordinal data to integrate the relationship between the effectiveness of law and the rate of FDI. Loopholes of different statutes have been portrayed to clarify the real scenario of FDI in Bangladesh. The efficacy of the existing forum of dispute resolution has been analysed critically; to justify the role of domestic courts and ICSID, in attracting more frequent investments. Our Findings will indicate that effective laws can preserve the legal rights of foreign investors while keeping its domination and negative effects to a minimum and increase FDI inflows in Bangladesh.
SALR Article No. 06