Social and Behavioral Sciences Commons^™

Foreign Direct Investment Regulation: Should Africa Avoid Performance Requirement?, Marga F. Angerasa

Young African Leaders Journal of Development

This article assesses how African states should regulate Foreign Direct Investment (FDI). In particular, it focuses on whether African states should employ or avoid performance requirements as mechanism of regulation of FDI. The imposition of performance requirements, also known as operational requirements, in IIAs remains controversial. There is no consensus either on their effectiveness in helping countries to promote development, or in their distorting effects. Some host developing countries consider performance requirements to be an effective policy tool for enhancing the benefits of FDI and consider their disciplining to be undue interference with their policy space. In this paper argues …