Abstract
In light of the limited possibility to seek legal recourse against screening of foreign investments on grounds of national security, can insurance provide an alternative avenue to compensate affected investors? The answer is: Yes, but with caveats. For investors, even if insurance does not provide an equivalent to full reparation, it can serve as a useful mitigant of the risk that contemplated investment transactions cannot be consummated as anticipated due to screening measures. For host States, insurance provides a useful mechanism by which they can facilitate compensation of investors without having to disclose information contrary to their essential security interests and thus a means by which host States can remain attractive to foreign direct investment in spite of investment screening.
Original language | English |
---|---|
Pages (from-to) | 596-625 |
Number of pages | 30 |
Journal | Journal of World Investment & Trade |
Volume | 22 |
Issue number | 4 |
DOIs | |
Publication status | Published - 16 Aug 2021 |
Keywords
- diplomatic protection
- essential security interests
- foreign direct investment
- geoeconomics
- investment screening
- screening risk insurance
- screening risk