Investment is a leading source of economic growth, job creation, infrastructure, competition, international trade and innovation. Countries with a high level of investment systematically achieve higher levels of development in more sustainable ways. A central question among policy makers is therefore how to enhance investment? Bearing in mind that investment is triggered and influenced by a multitude of factors, and that international investment agreements (IIAs) are not substitute for long-term and comprehensive improvements towards a transparent, rules-based pro-business policy environment, they do play a fundamental role by providing an additional layer of security to foreign investors. Thus, they can be an important factor for host countries to attracting more foreign direct investments (FDI), both in quantity and quality.
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