Published on October 11th, 2021 | by Newt Rayburn0
The Impact Of Free Trade Agreements On Foreign Direct Investment
Previous studies have shown that a trade agreement has a positive effect on foreign direct investment (FDI). Therefore, the results are consistent with what Carr et al. (2001) predict about the impact of trade costs on foreign direct investment in industrialized industrialized couples and in industrial and developing couples. Dhingra et al. (2017) point out that in the harsh Brexit scenario, where no free trade agreement (FTA) is signed and the UK and the EU regulate World Trade Organisation (WTO) rules, UK per capita income would fall by 9.4%. Dhingra et al. (2017) point out that this result could be attributable not only to trade, but also to the potential decline in foreign direct investment. In this case, the research highlights the positive effects of foreign direct investment on economic growth or productivity in industrialized countries (e.g. .