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GTAP Resource #7745

"Modeling Investment Facilitation: Potential Effects of EU Sustainable Investment Facilitation Agreements"
Authors: Olekseyuk, Zoryana


Abstract
Global FDI flows fell by 11% in 2024 amid geopolitical tensions, trade wars, and rising protectionism, making investment facilitation an increasingly important tool for fostering inclusive and sustainable growth. This paper analyses the economic effects of the EU's new generation of Sustainable Investment Facilitation Agreements (SIFAs), which prioritise sustainable investment and dispute prevention over traditional investment protection. Using the Investment Facilitation Index (IFI) to quantify country-level reform gaps relative to the EU–Angola SIFA — the only fully implemented agreement to date — we simulate the agreement under scenarios of varying implementation depth, distinguishing between binding, conditional, and best-efforts provisions. We apply a multi-region general equilibrium model incorporating monopolistic competition and FDI, based on GTAP 12 data. Our results indicate empirically relevant gains from improved investment frameworks, with developing countries benefiting most due to their greater potential to reduce investment costs. The findings offer timely, evidence-based insights for policymakers engaged in current and upcoming SIFA negotiations.


Resource Details () GTAP Keywords
Category: 2026 Conference Paper
Status: Published
By/In: Presented during the 29th Annual Conference on Global Economic Analysis (Kyoto, Japan)
Date: 2026
Version:
Created: Olekseyuk, Z. (4/13/2026)
Updated: Olekseyuk, Z. (4/13/2026)
Visits: 29
- Economic development
- Foreign direct investment
- Multilateral trade negotiations
- Africa (Central)
- Africa (West)
- European Union
- South America


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