Highlights

Most international negotiations on foreign direct investment (FDI) focus on issues involving the paired relationship between transnational corporations (TNCs) and host countries. In reality, however, this paired relationship between TNCs and host countries is triangular. Home countries also influence FDI flows, including the relative prospects that their TNCs will select developing country investment sites. In response to these issues, the paper poses the following question: to what extent do international investment agreements (IIAs) address home country measures (HCMs) that influence FDI flows to host countries?