The Equilibrium of National Sovereignty and Economic Prosperity: A Legal Economic Analysis of FDI in Iran

This Thesis strives to establish a direct correlation between the jeopardised national sovereignty and economic prosperity due to FDI. In order to elaborate the argument, the first chapter sets forth the key determinants of FDI. This will assist in explaining the destinations and the fields of investment, which are of interest to the FDI exporters. The second chapter presents the evolution of economic trends in the past 100 years in order to examine the impact of different approaches towards FDI. The impact of FDI and globalisation on developing countries is also presented. It is then argued that, although free market economics boost growth, the interference of the state is a necessity in times of crisis. The third chapter incorporates the historic roots of FDI in Iran. It will be argued that the sovereignty of Iran has been gravely endangered as a result of foreign influence, which explains the current mind-set of Iranians in relation to foreign clout. Such influence is evidenced to have taken place through political and economic treaties. The fourth chapter examines the validity of the abovementioned hypothesis in the context of the current political establishment of Iran. The recent history of Iran since 1979 is thus presented with emphasis on the legal and economic evolution of the country decade by decade. It is argued that the key hurdle towards the FDI flow in Iran, has been economic sanctions. It is concluded that, there is a direct correlation between FDI and jeopardised sovereignty, and, in the case of Iran, its endeavour to adhere to international law with view to increase the FDI inflow has been futile.