Karl Sauvant, who authored the report, stated that since the 1980s countries have liberalised their FDI regulatory frameworks and put in place international investment laws that provide numerous protections for foreign investors.

However, over the past few years many countries have been reconsidering their investment approaches, including an increase in screenings of mergers and acquisitions, often conducted under the pretext of national interests.

Mr Sauvant writes that the recession may help to dampen the rise of FDI protectionism as countries seek investment to help with their recovery, but warns that the increase of FDI protectionism should not hamper legal frameworks to FDI.

Ginanne Brownell