A comparative study of the foreign direct investment laws at the pre-entry stage in Bangladesh and Malaysia

The primary purpose of economic globalisation is the economic development of the developing and least-developed countries as well as to facilitate benefits of the home states. Due to recent economic crisis and negative effects of FDI in various places in the world, many host states has started to a...

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Main Author:	Hossain, Mohammad Belayet
Format:	Thesis
Language:	eng eng
Published:	2022
Subjects:	HB Economic Theory K Law (General)
Online Access:	https://etd.uum.edu.my/9921/1/depositpermission_s903459.pdf https://etd.uum.edu.my/9921/2/s903459_01.pdf
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id	my-uum-etd.9921
record_format	uketd_dc
spelling	my-uum-etd.99212022-10-04T00:41:53Z A comparative study of the foreign direct investment laws at the pre-entry stage in Bangladesh and Malaysia 2022 Hossain, Mohammad Belayet Yeon, Asmah Laili Abd. Aziz, Ahmad Shamsul Ghazali Shafie Graduate School of Government Ghazali Shafie Graduate School of Government HB Economic Theory K Law (General) The primary purpose of economic globalisation is the economic development of the developing and least-developed countries as well as to facilitate benefits of the home states. Due to recent economic crisis and negative effects of FDI in various places in the world, many host states has started to adopt restrictive entry regulation for the multinational enterprises (MNEs). These regulatory conditions and restrictions differ between countries, depending on the development goals and objectives of the respective host states. Accordingly, restrictions on entry and permission imposed by different host states can be categorised primarily into three groups: (a) Sovereignty, national interest and security; and foreign ownership; (b) Capitalisation and performance requirements; (c) Screening of investment proposal and environmental protection. Due to fierce competition and attracting more foreign investments, host states like Bangladesh and Malaysia has lax regulatory laws and policies. Even though FDI has played a key role in the modernisation of Bangladesh and Malaysia’s economy, there are also negative effects, which are caused due to lack of effective legislation and control. Similarly, findings of this study shows that BITs and TIPs of both countries mainly protect foreign investors and lacks specific regulatory provisions to control them. In this study, six factors: sovereignty, national interest and security, foreign ownership, capitalisation requirement, performance requirement, screening of foreign investment and environmental protection has been selected and discussed in order to regulate FDI during the pre-entry stage. The primary research question was – to what extent the existing FDI governing laws were comparative at the pre-entry stage in Bangladesh and Malaysia? In this relation, the existing legal framework, BITs and TIPs of both countries have been critically evaluated. The primary research objective was to compare the FDI laws, BITs and TIPs in both countries. This study adopts qualitative, doctrinal and non-doctrinal legal research and comparative research methodology. The qualitative and doctrinal aspects are library-based complemented by ten semi-structured interviews, while the comparative aspect involves reference to relevant FDI laws of various host states. The analysis of data employs doctrinal, comparative, thematic, critical and analytical methods. The findings indicate that the existing legal framework of both Bangladesh and Malaysia are not completely harmonious in relation to six factors to regulate foreign investors at the pre-entry stage. Similarly, the BITs and TIPs of both states mainly protect foreign investors and most of them lack specific provisions to cover six factors at the pre-entry stage. Based on the findings, this study recommends that the Government of Bangladesh and Malaysia could consider including these six factors, either through amending the existing legal framework or the BITs and TIPs. At the same time, implementation of the legal frameworks must be strengthened further to ensure that the foreign investors are fulfilling all the requirements at the pre-entry stage in both countries. 2022 Thesis https://etd.uum.edu.my/9921/ https://etd.uum.edu.my/9921/1/depositpermission_s903459.pdf text eng staffonly https://etd.uum.edu.my/9921/2/s903459_01.pdf text eng public other doctoral Universiti Utara Malaysia
institution	Universiti Utara Malaysia
collection	UUM ETD
language	eng eng
advisor	Yeon, Asmah Laili Abd. Aziz, Ahmad Shamsul
topic	HB Economic Theory K Law (General)
spellingShingle	HB Economic Theory K Law (General) Hossain, Mohammad Belayet A comparative study of the foreign direct investment laws at the pre-entry stage in Bangladesh and Malaysia
description	The primary purpose of economic globalisation is the economic development of the developing and least-developed countries as well as to facilitate benefits of the home states. Due to recent economic crisis and negative effects of FDI in various places in the world, many host states has started to adopt restrictive entry regulation for the multinational enterprises (MNEs). These regulatory conditions and restrictions differ between countries, depending on the development goals and objectives of the respective host states. Accordingly, restrictions on entry and permission imposed by different host states can be categorised primarily into three groups: (a) Sovereignty, national interest and security; and foreign ownership; (b) Capitalisation and performance requirements; (c) Screening of investment proposal and environmental protection. Due to fierce competition and attracting more foreign investments, host states like Bangladesh and Malaysia has lax regulatory laws and policies. Even though FDI has played a key role in the modernisation of Bangladesh and Malaysia’s economy, there are also negative effects, which are caused due to lack of effective legislation and control. Similarly, findings of this study shows that BITs and TIPs of both countries mainly protect foreign investors and lacks specific regulatory provisions to control them. In this study, six factors: sovereignty, national interest and security, foreign ownership, capitalisation requirement, performance requirement, screening of foreign investment and environmental protection has been selected and discussed in order to regulate FDI during the pre-entry stage. The primary research question was – to what extent the existing FDI governing laws were comparative at the pre-entry stage in Bangladesh and Malaysia? In this relation, the existing legal framework, BITs and TIPs of both countries have been critically evaluated. The primary research objective was to compare the FDI laws, BITs and TIPs in both countries. This study adopts qualitative, doctrinal and non-doctrinal legal research and comparative research methodology. The qualitative and doctrinal aspects are library-based complemented by ten semi-structured interviews, while the comparative aspect involves reference to relevant FDI laws of various host states. The analysis of data employs doctrinal, comparative, thematic, critical and analytical methods. The findings indicate that the existing legal framework of both Bangladesh and Malaysia are not completely harmonious in relation to six factors to regulate foreign investors at the pre-entry stage. Similarly, the BITs and TIPs of both states mainly protect foreign investors and most of them lack specific provisions to cover six factors at the pre-entry stage. Based on the findings, this study recommends that the Government of Bangladesh and Malaysia could consider including these six factors, either through amending the existing legal framework or the BITs and TIPs. At the same time, implementation of the legal frameworks must be strengthened further to ensure that the foreign investors are fulfilling all the requirements at the pre-entry stage in both countries.
format	Thesis
qualification_name	other
qualification_level	Doctorate
author	Hossain, Mohammad Belayet
author_facet	Hossain, Mohammad Belayet
author_sort	Hossain, Mohammad Belayet
title	A comparative study of the foreign direct investment laws at the pre-entry stage in Bangladesh and Malaysia
title_short	A comparative study of the foreign direct investment laws at the pre-entry stage in Bangladesh and Malaysia
title_full	A comparative study of the foreign direct investment laws at the pre-entry stage in Bangladesh and Malaysia
title_fullStr	A comparative study of the foreign direct investment laws at the pre-entry stage in Bangladesh and Malaysia
title_full_unstemmed	A comparative study of the foreign direct investment laws at the pre-entry stage in Bangladesh and Malaysia
title_sort	comparative study of the foreign direct investment laws at the pre-entry stage in bangladesh and malaysia
granting_institution	Universiti Utara Malaysia
granting_department	Ghazali Shafie Graduate School of Government
publishDate	2022
url	https://etd.uum.edu.my/9921/1/depositpermission_s903459.pdf https://etd.uum.edu.my/9921/2/s903459_01.pdf
_version_	1747828700910452736

A comparative study of the foreign direct investment laws at the pre-entry stage in Bangladesh and Malaysia

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