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Bhutan's Integration with the Global Economy : International Investment Treaties and Conventions (Inglês)

In this context, Bhutan can become wealthier through accelerating both domestic and foreign investment, as well as signing investment treaties. These investments could provide not just capital but also bring necessary skills, knowledge and ideas, and help the country move beyond hydropower. Today FDI inflows are small and constrained, on the one hand, by regulatory barriers and insufficient investment promotion, and, on the other, by inadequacies in skills and infrastructure. Bhutan can benefit from the experience of East Asia and other countries on how to break out of this low investment trap. FDI can help the macroeconomic balance by increasing exports and reducing the current account deficit, although it is not clear the future impact on growth, since it will depend on the quality and type of FDI inflows. FDI can also help create trade. Theoretically, firms invest abroad to expand their sales markets when trade costs are too high, therefore FDI is a substitute for trade. FDI in non-tradable sectors (services, etc) has this feature. However, in practice, FDI goes to export-oriented sectors including extractives but also manufacturing. Given the landlocked nature of geographic setting of Bhutan (with higher trade cost than countries such as India or Bangladesh), FDI could go primarily to non-tradable (at least as shown in the recent trend in the greenfield FDI). In this context, it will be important to use FDI to tap into regional value chains.


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    Zafar,Ali, Echandi,Roberto, Mattoo,Aaditya

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    Sul da Ásia,

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    Bhutan's Integration with the Global Economy : International Investment Treaties and Conventions

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    general agreement on trade in service; foreign investor; bilateral investment treaty; access to foreign market; direct impact on market; private right of action; real gross domestic product; international investment; foreign direct investment; international investment agreement; trade and investment; disputes between state; current account deficit; arbitration of dispute; dispute settlement mechanism; term capital; protection of health; public policy objective; investor-state dispute settlement; national policy objective; gross capital formation; Natural Resource Wealth; international investment law; standards of protection; capital goods import; security and protection; reciprocal market access; foreign equity ownership; graduates per year; benefits of trade; international commercial arbitration; increase in debt; joint venture arrangement; Rule of Law; per capita term; payment of tax; european investment bank; terms of trade; transfer of fund; regional value chain; regional trade agreement; principle of openness; arbitral award; domestic reform; greenfield investment; Land Ownership; financial service; small country; fiscal cost; road map; international arbitration; subject matter; investment chapter; trading partner; source country; domestic investor; project costing; national interest; policy regime; Political Economy; international treaty; contracting state; fair share; arbitral tribunal; international convention; global economy; foreign affiliate; capital transaction; investment component; civil society; manufacturing sector; administrative capacity; international investor; empirical evidence; legal capacity; investment provisions; investment level; convertible currency; comparative advantage; light manufacturing; pharmaceutical company; private party; minimum capital; foreign currency; commercial rates; private parties; intellectual property; procedural fairness; enforcement mechanism; education budget; competent authority; investment dispute; average cost; double taxation; fiscal evasion; emerging economy; capital export; richer countries; currency earnings; prudential regulation; debt-equity ratio; capital gain; invest capital; marginal benefit; indian rupee; bilateral arrangement; future investment; Financial Sector; domestic court; foreign ownership; ownership restriction; local partner; government conduct; overseas investor; infrastructure sector; work permit; equity contribution; bhutanese ngultrum; foreign company; industrial park; domestic legislation; winding up; fair compensation; investment inflow; economic sector; trade deal; geographic region; legal structure; commercial presence; governing services; reciprocal protection; trade flow; participating country; signatory countries; market size; tax framework; economic instability; open hearing; signatory state; regulatory environment; business indicator; empirical literature; vested interests; export market; domestic regulatory; state sector; increased access; asian markets; domestic ownership; negotiating capacity; commercial dispute; municipal law; taxation policy; national treatment; performance requirement; policy space; domestic law; environmental regulation; public health; legislative change; Emerging economies; Environmental Policy; Natural Resources; case law; treaty obligation; land reform; mining investor; black empowerment; macroeconomic crisis; labor right; human rights; enforcement procedure; arbitral proceeding; Public-Private Partnership; tourism industry; ferro alloy; geographic dispersion; trade costs; government data; geographic setting; program leader; high trade; comparator group; real gdp; commercial space; entry barrier; metal industry; software company; furniture factory; environmental consideration; equity stake; macroeconomic balance; regulatory barrier; International Trade; significant challenge; book value; hydropower sector; domestic revenue; voting stock; fiscal management; increasing exports; monetary policy; agricultural harvests



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