Conceptual model for strengthening international commercial arbitration in promoting cross-border trade and investment in developing economies
1 Independent Researcher, New York, USA.
2 McKinney School of Law, Indiana University, USA.
3 Nigerian Law School, Lagos, Nigeria.
4 School of Law and Security Studies, Babcock University, Ilishan-Remo, Ogun State, Nigeria.
Review Article
Global Journal of Research in Multidisciplinary Studies, 2024, 02(01), 017–033.
Article DOI: 10.58175/gjrms.2024.2.1.0037
Publication history:
Received on 24 July 2024; revised on 31 August 2024; accepted on 03 September 2024
Abstract:
International commercial arbitration plays a crucial role in promoting cross-border trade and investment, particularly in developing economies where legal and institutional frameworks may be underdeveloped. This paper proposes a conceptual model aimed at strengthening international commercial arbitration to enhance its effectiveness in supporting cross-border trade and investment in these regions. The model addresses the unique challenges faced by developing economies, such as inadequate legal infrastructure, limited access to expertise, and the reluctance of foreign investors due to perceived risks. It emphasizes the need for capacity building, the harmonization of arbitration laws with international standards, and the creation of supportive legal environments that foster investor confidence. The model proposes the establishment of regional arbitration centers with a focus on developing economies, staffed by experts familiar with local contexts and international best practices. Additionally, it suggests the integration of digital technologies to streamline arbitration processes, reduce costs, and enhance accessibility. Collaboration between international arbitration bodies, governments, and private sectors is also highlighted as a critical component for the success of this model. Furthermore, the model advocates for the development of specialized training programs to build local expertise in arbitration and dispute resolution. By fostering a robust arbitration culture, developing economies can attract and retain foreign investment, thereby contributing to sustainable economic growth. This conceptual model seeks to bridge the gap between global arbitration standards and the specific needs of developing economies. By doing so, it aims to create a more conducive environment for cross-border trade and investment, ultimately contributing to the economic development of these regions. The paper concludes by outlining the potential impact of the model on improving investor confidence, reducing trade barriers, and enhancing the overall attractiveness of developing economies as investment destinations.
Keywords:
International commercial arbitration; Cross-border trade, investment; Developing economies; Legal infrastructure; Regional arbitration centers; Digital technologies; Capacity building; Investor confidence
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