FDI flow in Energy Sector among BCIM, BIMSTEC+1 and ASEAN+4 sub-regional alignments

Abstract

FDI is the most dynamic component for boosting trade among different sub-regional blocs. It may be considered under Mode 3 of the GATS agreement. This study documents various restrictions under market access and national treatments under mode 3 as committed by different member countries, among three regional trading blocs to improving the energy sector. A large portion of trade is being facilitated through strong linkage between service trade and FDI flow among countries or regions. ASEAN countries among South East Asia played an important role in attracting foreign direct investments for the economic development and growth in Energy Sector. Trade barriers, particularly commitment barriers of importing country, have a strong negative impact on smooth flow of investments across regions. This research also reviews the purposes  of FDI among regional countries and explores the deepest and strong relationships among regional members to explore a possible strategic relationship for formation of Regional Trade Agreement (RTA).