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Legal Stability Contracts In Colombia: An Appropriate Incentive For Investments? Historical Causes And Impact Analysis Of Law 963 To 2005, Alvaro Pereira
Legal Stability Contracts In Colombia: An Appropriate Incentive For Investments? Historical Causes And Impact Analysis Of Law 963 To 2005, Alvaro Pereira
Richmond Journal of Global Law & Business
Current global economic order is openly dependent on foreign direct investment (FDI). At least since the 1990’s, developing countries have competed to attract FDI because it is considered the best source of technology, employment, and financial resources. Colombian Law 963 of 2005, which is a response to said competition, allows the signature of Legal Stability Contracts (LSCs) between the State and investors for the purpose of stabilizing the rules guiding investment decisions, for up to 20 years. Legal stabilization has successfully proven to increase FDI inflows. Nevertheless, incentives for FDI have been subject to several critiques that stress the excess …