Foreign Direct Investment and Investment Liberalization in Asia: Assessing Asean's Initiatives

Abstract

This paper explores ASEAN's attempts at investment liberalization. Investment liberalization is variously associated with net positive effects on inflows of investment capital, technology transfer, employment, export generation, economic growth and development. As a net historical beneficiary of investment flows, the paper hypothesizes that ASEAN's stated commitment to investment liberalization should by now be realizing progress in each of four areas: a). absolute reductions in national autonomy in relation to investment screening and conditionality provisions; b). increased transparency in respect of member-states national investment regimes; c). enhanced standardization and codification of regulatory standards governing investment related provisions across member states; and d). enhanced centralized coordination and decision making in respect of investment governance. Each of these areas is investigated in relation to ASEAN's three primary investment agreements and the ensuing regimes that govern investment provisions and policy practices among member states.