Foreign direct investment (FDI) has come to be seen as a promising avenue for boosting economic development. As a consequence, most developing countries now seek to attract FDI, often by making ex ante promises to foreign investors not to pass laws or regulations — or refrain from other...

International trade agreements can help developing countries attract foreign direct investment. We ask whether differences in the specific provisions included in trade agreements have differential effects on FDI. Can trade agreements with more credible commitments to protect investment induce...