Arslan Tariq
email: arslan@univ-orleans.fr

Mazen Kebewar
email: mazen.kebewar@univ-orlenas.fr

The Political Economy of FDI flows into Developing Countries: Does the depth of International Trade Agreements Matter? †

Keywords: Foreign direct investment, free trade agreements, partial scope agreements, domestic institutions. JEL Classification: F21, F55, F59

 and no feedback effect found in sample. The results state that (1) More the FTA-CU concluded, larger the amount of FDI inflows are attracted into the developing countries and PSA are insignificant in determining the FDI inflow; (2) FTA-CU are complementary to democratic regime whereas the conditional effect of PSA with democracy on levels of FDI inflows is insignificant.

Introduction

Foreign Direct Investment (FDI) inflows have recently been the most persistent source of capital inflows in developing countries. In 2010, these countries have attracted FDI inflows of $574 billion constituting the share of 46.29% of total inward investment (UNCTAD 2011). This extensive growth of FDI has, consequently, given rise to the competition among policy makers in developing countries that adopt higher investment incentives and make ex ante commitments to foreign investors about the continuity of policies. The instruments they use to make commitments are the membership in international organizations such as GATT-WTO. Other instruments are conclusion of Bilateral Investment Treaties (BIT) and Preferential Trade Agreements (PTAs). The conclusion of PTAs is considered a new phenomenon in establishing credibility of commitment in the goal to attract FDI flows (e.g. [START_REF] Büthe | The Politics of Foreign Direct Investment into Developing Countries: Increasing FDI through International Trade Agreements?[END_REF]. Apart from international institutions, the domestic politics also plays a crucial role and the regime type conditions the impact of PTAs in attracting FDI [START_REF] Büthe | The Interaction of Domestic and International Institutions: Democracy, Preferential Trade Agreements, and Foreign Direct Investment into Developing Countries[END_REF]. PTAs are not homogenous. There exist numerous types of PTAs. WTO distinguished among their various types. The focus here is on the differing impact of various types of trade agreements on FDI flows and also to examine whether the democratic regime moderates the effect of different types on FDI inflows.

The governments are confronted with obsolescing bargain in the process of attracting foreign investments. In the obsolescing bargain, the investors (MNCs) are in a position to locate operations in one of the multiple possible locations around the world. To attract investments, governments offer variety of attractive investment incentives to the foreign firms in the form of reduced taxes, investment grants and wage subsidies [START_REF] Li | Reversal of fortunes: Democracy, property rights and foreign direct investment inflows in developing countries[END_REF]. But FDI is often characterized by a high degree of reversibility and sunk costs (Stasavage 2002b, and[START_REF] Jensen | Democratic Governance and Multinational Corporations: Political Regimes and Inflows of Foreign Direct Investment[END_REF]. Thus, the investors are worried about the credibility of the attractive stances taken by the governments and the successful continuation of the policies after the investment is made. Examples of policy changes include changes to performance requirements, direct expropriation, nationalization, and confiscation of foreign assets [START_REF] Henisz | The Institutional Environment for Multinational Investment[END_REF].

The host developing countries can signal their credibility of commitments at domestic as well as international level. Numerous researchers have found positive impact of a democratic regime on FDI (e.g. [START_REF] Busse | Democracy and FDI" HWWA discussion paper[END_REF]. According to [START_REF] Jensen | Democratic Governance and Multinational Corporations: Political Regimes and Inflows of Foreign Direct Investment[END_REF], democratic political institutions constrain the policy flexibility of the executive thus signaling to foreign investors about policy stability after FDI location. But [START_REF] Li | Democracy, autocracy, and expropriation of foreign direct investment[END_REF] opposed and argued that democracy is not a remedy for eliminating risk of expropriation. There exists contradiction in literature about the impact of democratic regime on FDI. While debates on whether domestic political institutions (specifically, the country's level of democracy) of the host developing country toward foreign investors are effective in establishing the credibility of commitments are still underway, researchers have also analyzed the effect of international institutions such as (GATT-WTO) membership and Bilateral Investment treaties (BIT in their role of establishing the credibility of commitment to attract foreign investments. In addition, most recent studies have examined the effect of International Trade Agreements (PTAs) on FDI flows (Büthe andMilner 2008, 2010) as they contain separate investment chapters and dispute settlement mechanism, thus providing confidence to investor regarding the security of their investments. These studies analyzed this issue based on PTAs dummy variable without considering that not all PTAs provide the same level of investment protection and liberalization. A deeper analysis is needed to take into account the qualitative differences among various types of trade agreements.

This paper builds on the study of [START_REF] Büthe | The Interaction of Domestic and International Institutions: Democracy, Preferential Trade Agreements, and Foreign Direct Investment into Developing Countries[END_REF], who examined the effect of interaction of regime type with PTAs, and analyzed the impact of heterogeneous PTAs, and their interaction with domestic institutions, on FDI inflows to examine the conditional effect. Full-fledged agreements such as Free Trade Agreements and Customs Unions (FTA-CU) serve as a better commitment device as they are associated with domestic political as well as international reputational cost, whereas Partial Scope Agreements (PSA) have limited credibility ascertaining no obvious cost in case of reneging. Each type consists of different arrangements and thus differs in its institutional characteristics. Statistical analysis for 122 developing countries from 1970 to 2005 is done. The method adopted relies on fixed effects estimator which is also robust to control endogeneity on a large panel dataset. The strict exogeneity of results is tested by using a method suggested by [START_REF] Baier | Do free trade agreements actually increase members' international trade?[END_REF].

The rest of the paper is structures as follows: Section (2) presents the review of literature, analyzing the effect of heterogeneous PTAs and discussing the contradiction in impact of regime type on FDI flows. The simultaneous effect of varying types of PTAs and level of democracy is also examined in this section. Section (3) includes explanation of data and results, whereas section (4) concludes.

Theoretical Background of interaction of institutions

Heterogeneity of International Institutions and FDI

At the international level, countries, competing for international production capital, have concluded the establishment of the institutions which bind them of their commitments signaling the partner countries, the persistence of the policies and protecting the rights of the foreign companies making (long term) investments in the host country. The benefit of international institutions lies primarily in the creation of disincentives for states to behave opportunistically by reneging on trade agreements [START_REF] Goldstein | Legalization, Trade Liberalization, and Domestic Politics: A Cautionary Note[END_REF]. Among them, the multilateral institution is GATT-WTO, which has provided the forum for investment provisions and its protection. Apart from the multilateral institutions, there exist regional and bilateral arrangements known as PTAs. Although, varying in the coverage of products with the commitment for tariff reduction, range of issues and entailing the measures for the implementation of those commitments, PTAs offer twofold advantages in the context of attracting FDI: PTAs include strategic instruments such as provisions for investment1 , reducing barriers to investment and transaction costs. They provide dynamic benefits such as increased bilateral investment, industrial location and help in growth [START_REF] Schiff | Regional Integration as Diplomacy[END_REF] and secondly, at the same time, they serve as the insurance device and provide mechanisms for making credible commitments to foreign investors about the continuation of policies and treatment of their assets, thus avoiding the time-inconsistency trap, reassuring investors and increased investment [START_REF] Fernandez | Returns to Regionalism: An Analysis of Nontraditional Gains from Regional Trade Agreements[END_REF][START_REF] Simmons | The Legalization of International Monetary Affairs[END_REF][START_REF] Büthe | The Politics of Foreign Direct Investment into Developing Countries: Increasing FDI through International Trade Agreements?[END_REF]. In other words, trade agreements institutionalize the investment process (from negotiations on investment provisions till the mechanisms to protect them after dislocation of firms). In addition to the investment and assurance benefits to investors, PTAs, in general offer lower trade barriers, increase the scope of products to be traded and indirectly decreased costs for investors.

In the light of the above discussion about the advantages of PTAs in attracting production capital, they nevertheless differ in scope and coverage as well as in provision mechanisms and legalization. Trade agreements vary widely in depth and form. WTO distinguishes the agreements according to their form such as partial scope agreements, free trade agreements, customs unions, to which common markets can be added. These agreements range from the simple exchange of trade preferences on limited range of products and investment measures to the harmonization of policies beyond tariffs such as dispute settlement procedures, legality, competition policy, infrastructure and environmental standards. GATT-WTO under the article XXIV permits the formation of FTA under the condition if the partner countries liberalize "substantially all trade" among them. Customs unions are a one step further to FTA entailing common external tariff for all the member countries as introduced by [START_REF] Balassa | Towards a Theory of Economic Integration[END_REF], considering regionalism as gradual process. On the other hand, Partial scope agreements (in which there is little coverage and the level of legalism is very low) are permitted for developing countries under the "enabling clause" to exchange partial tariff preference between members.

The heterogeneity between the institutions entailing different depth and breadth are the drivers of diverse investment outcomes. The reason is due to the involvement of varying provisions regarding investment and dispute settlement, punishment mechanisms and their legal enforceability in trade agreements negotiations. States, while negotiating various agreements can include third party for arbitration (such as International Centre for Settlement of Investment Disputes) in case of dispute emergence, specifically related to investments2 . Emphasizing on the differing effects of regional integration agreements on investments, [START_REF] Blomström | Regional integration and foreign direct investment[END_REF] argue that perhaps the most serious challenge facing a study of the relation between regional integration and foreign direct investment is the multi-dimensional character of the issue. As argued, the diversity of trade agreements has differing effects, they not only reduce barriers to trade and investment, and they also provide increased benefits relating to the implementation of credibility of commitment.

Trade agreements are in variety of forms and the type of agreement at hand influences the type of dispute settlement system favored by member governments [START_REF] Smith | The Politics of Dispute Settlement Design: Explaining Legalism in Regional Trade Pacts[END_REF]. Highly legalized dispute settlement mechanism indicates a strong commitment to the protection of property rights of investors and, subsequently, should be an effective way of attracting investment flows [START_REF] Büthe | The Politics of Foreign Direct Investment into Developing Countries: Increasing FDI through International Trade Agreements?[END_REF]. Also, the effectiveness of an integration agreement depends upon the punishment mechanisms and costs it implies for pursuing bad policy (such as reneging) [START_REF] Schiff | Regional Integration as Diplomacy[END_REF]. Institutions may have relatively strong central authorities and significant operating responsibilities or be little more than forums for consultation [START_REF] Koremenos | The Rational Design of International Institutions[END_REF], the later implying a very low level of legalism permitting the concluding state to reject any proposed settlement in favor to accommodate domestic interest groups and caring about policy discretion to craft policies [START_REF] Smith | The Politics of Dispute Settlement Design: Explaining Legalism in Regional Trade Pacts[END_REF]. No doubt, the low level of legalism still provides investment and assurance benefits to some extent, there are two broader advantages inherent in deeper and broader arrangements. Firstly they generate larger economic gains by freeing 'substantially' all trade and thus investments and secondly by involvement of strong dispute settlement mechanisms and options, they provide greater predictable environment for investors who seek to raise their voice in the event of policy change (ex-post agreement) or expropriation of their assets in the host country after the location of their investments.

A full-fledged trade agreement 3 serves as the better commitment device than partial scope agreement4 . A strong, liberalizing RIA may lead to a virtuous circle of increased credibility and thus increased investment and growth. On the contrary, a more closed agreement could lead in the opposite direction with reduced credibility and lower investment [START_REF] Schiff | Regional Integration as Diplomacy[END_REF].

For example [START_REF] Abbott | NAFTA and the Legalization of World Politics: A Case Study[END_REF] establishes that though EU and NAFTA5 adopted different institutional and juridical models, they preferred 'hard' law. The broader and deeper agreements such as FTA-CU (and not PSA which involve weaker obligations), ascertaining strongly binding legal commitments, offer advantages to both parties signing an agreement with the objective to increase the flow of investments. First, the hard legal commitments are used by the government of investors or MNC as assurance devices as the potential for opportunism and costs are high for the host countries (Abbot and Snidal 2000). Secondly, for the host countries6 , they serve as mechanism to prove their credibility of commitments about the treatment of foreign investors' assets when noncompliance is difficult to assess ex-ante. Focusing on the preferences of countries for using hard law in international economic arrangements, [START_REF] Abbott | NAFTA and the Legalization of World Politics: A Case Study[END_REF] suggests that hard law reduces private risk premiums and intergovernmental transaction costs associated with trade and investment. Thus, reduced uncertainty and costs associated with broader and deeper forms of economic integration augments the flow of investments among the signing parties. Figure ( 1) depicts the evolution of Full-fledged trade agreements (FTA-CU) as well as partial scope agreements (PSA) of developing countries and annual flows of FDI into these countries.

The design of agreement proposed prior to an arrangement also signals the extent of credibility. If the design of arrangement is flexible and weakly legalized where asymmetry of information is high, such as in (PSA), the plausibility of reneging on the agreement cannot be ignored. [START_REF] Goldstein | Legalization, Trade Liberalization, and Domestic Politics: A Cautionary Note[END_REF] argued that although flexibility or "imperfection" could lead to stability and success of agreements, but incentives also exist for states to evade commitments. Also, [START_REF] Abbott | Why states act through Formal International Organizations[END_REF] argued that noncompliance typically results not from deliberate cheating but from ambiguity in agreements. There exists potential that as these loosely integrated (flexible) agreements can be reneged and thus, in turn, they do not provide a strong mechanism to provide confidence to investors. Figure 1 provides the evolution of FTA-CU, PSA and Annual FDI inflows.

These arguments regarding the heterogeneity of trade agreements and flows of foreign direct investments yield the testable hypothesis:

It can be seen from the figure that FTA-CU and FDI inflows are growing together whereas PSA are showing different trend although the figure shows their similarity with FDI inflows before the year of 1995.

H1: The greater number of FTA-CU a country concludes the greater and significant will be FDI inflows in contrast to the number of PSA concluded.

FDI, in the wake trade agreements, have domestic implications for governments. Therefore, it is important to examine how they react to the varying institutional setups of trade agreements in their ability to attract FDI flows.

Heterogeneous International institutions, domestic politics and credibility of commitment in attracting FDI

The impact of democratic regime type is positive in attracting FDI [START_REF] Busse | Democracy and FDI" HWWA discussion paper[END_REF]). In the same vein, [START_REF] Jensen | Democratic Governance and Multinational Corporations: Political Regimes and Inflows of Foreign Direct Investment[END_REF] has argued that democratic political institutions at the domestic level constrain the committed policy flexibility of the executive. Compared to regimes tending towards autocracy, democratic regimes are characterized by heterogeneous veto players which weaken the ability of the executive to back on ex-ante commitments. Democracies signal their intention to other states and are able to commit credibly and clearly as opposed to authoritarian states [START_REF] Fearon | Domestic political audiences and the escalation of international disputes[END_REF][START_REF] Pevehouse | Regional Trade and Institutional Design: Long After Hegemony?[END_REF]. [START_REF] Li | Reversal of fortunes: Democracy, property rights and foreign direct investment inflows in developing countries[END_REF] have argued that property rights are stronger in democratic regimes, thus providing confidence to investors that they are safe from expropriation of their assets in host countries. However, this argument could also be contradicted in literature. For example, [START_REF] Li | Democracy, autocracy, and expropriation of foreign direct investment[END_REF] argued that democratic regime is not a remedy for eliminating the risk of expropriation. According to [START_REF] Yang | Autocracy, Democracy, and FDI Inflows to the Developing Countries[END_REF] there is no systematic relationship between democracy and FDI inflows. Being a democracy does not help to attract higher levels of FDI. Analyzing the arguments of [START_REF] Jensen | Democratic Governance and Multinational Corporations: Political Regimes and Inflows of Foreign Direct Investment[END_REF] and [START_REF] Li | Reversal of fortunes: Democracy, property rights and foreign direct investment inflows in developing countries[END_REF], he argued that these studies do not offer complete theoretical explanations on how political institutions influence expropriation of foreign assets i.e. they did not analyze opportunistic incentives on part of politicians.

The debate is going on and indecisive, whether democratic countries are credible in respecting the rights of foreign investors and attract FDI, there is another mechanism through which countries can assure investors and attract FDI is by concluding bilateral and regional trade agreements. As argued, trade agreements provide mainly two direct advantages in the context of investments: they include, in general, investment provisions and at the same time, provisions to settle dispute (if raised) related to investments.7 Thus, through these institutionalized arrangements, the democratic governments ensure the credibility of their policy commitment (ex-post) to foreign investors [START_REF] Büthe | The Interaction of Domestic and International Institutions: Democracy, Preferential Trade Agreements, and Foreign Direct Investment into Developing Countries[END_REF]. In this vein, it is important to understand the dynamics of regime type and domestic veto players in the formation of varying types of trade agreements with the goal to attract foreign firms (ex-ante) and the potential for reneging on agreements concluded. A problem arises at domestic level, when democratic governments pursue the policy of entering into trade agreements, especially the type of agreement proposed. Of crucial importance in this regard are the differences in formal institutions for sharing decisionmaking power that create the potential for veto players [START_REF] Mansfield | Democracy, Veto Players and the Depth of Regional Integration[END_REF]. The democratic political regime has to assume the conflicting interests of domestic institutions before trade agreements. These players are the institutional and partisan actors whose assent is necessary to introduce new policies [START_REF] Tsebelis | Veto Players: How Political Institutions Work[END_REF]. In a coalition government, any one member may veto a certain policy proposal by threatening to withdraw from government if there are certain reservations. In general, the domestic actors are divided into two main categories; median voters8 and interest groups. The results of [START_REF] Mansfield | Democracy, Veto Players and the Depth of Regional Integration[END_REF] indicate that more the domestic veto players, the higher the probability that the governments will form lower/shallower forms of integration agreements. But the preferences of domestic institutions are diverse i.e. there exists strong heterogeneity in domestic groups as well. Stolper Samuelson theorem predicts that free trade is more beneficial to the working class in labor-abundant countries. Here the workers are winners and capitalists are losers; and vice versa in capital-rich countries. In an unequal country, the median-voter will be labor-rich and capital poor thus it will influence government to adopt pro-labor policies. Median voter approach (pro-labor) is assumed by [START_REF] Levy | A political-economic analysis of free-trade agreements[END_REF] in his widely studied political economy model based on Hecksher-Ohlin framework. Other competing theory in contrast to median voter theory, the lobbying model, also based on two-factor Hecksher-Ohlin framework, Rodrick (1986) argues that capitalist lobby is more concentrated (and possessing better information [START_REF] Goldstein | Legalization, Trade Liberalization, and Domestic Politics: A Cautionary Note[END_REF]) than workers and therefore are more effective in pressurizing the government to conclude the policy which would be more pro-capital thus giving protection to the possessors of capital in labor-abundant countries9 .

The heterogeneity, described above, among domestic groups gives rise to the alternate choices of legalization and procedures in negotiations of arrangements. The import-competing groups feel themselves threatened as they face potential loss of market share in the presence of foreign firms and production capital. They restrain the government to commit the highly legalized form of arrangement thus falling short of full-fledged arrangement. On the other hand, in the context of developing countries, the state has to fulfill the demands of median voters, which encourage governments of committing highly legalized agreements, also in order to get them reelected as the median voters constitute a larger portion of population. Foreign direct investment is favorable for other part of median voters i.e. consumers in the host country as they help in improving the quality of products from the resulting increased competition thus benefitting consumers. FDI also helps in: technology advancement; getting access to wider global market by integrating to the world economy thus benefiting exporters 10 ; improved human resources permitting labor force to acquire globally valued skills (promoting general interests and benefiting median voter). In the same vein, as argued that according to Stolper Samuelson theorem, free trade (under the auspices of deeper trade agreements FTA-CU) is beneficial for labor abundant (developing) countries. In other words, the democratic government in the developing country will be more interested in concluding deeper forms of arrangements, which would be utile for welfare of their median voters (labor abundant audience) and also guaranteeing the international investors.

The credibility of commitment by a democratic government, described above, follows the sustainability of policies committed in concluded arrangement. More legalized trade regime will provide more and better information about the domestic distributional implications of trade agreements. This information will mobilize the domestic players in democratic regime to act in favor or against the arrangement [START_REF] Goldstein | Legalization, Trade Liberalization, and Domestic Politics: A Cautionary Note[END_REF]. They further argued that better information will empower protectionists when the governments are in process of concluding trade agreements and free traders on the issues of compliance to existing agreements. Reneging on commitments to FDI may be politically beneficial in the short run as increased income flows from policy changes can be distributed to a small group comprising core political supporters [START_REF] Jensen | Democratic Governance and Multinational Corporations: Political Regimes and Inflows of Foreign Direct Investment[END_REF]. Political leaders realize that liberalization (in the context of trade arrangements) will impose domestic costs and therefore they want to retain discretion to respond in future to uncertain demands for relief from injured groups [START_REF] Smith | The Politics of Dispute Settlement Design: Explaining Legalism in Regional Trade Pacts[END_REF]. Thus, the dynamics of domestic politics create some optimal level of imperfection in the application of international rules [START_REF] Downs | Optimal Imperfection? Domestic Uncertainty and Institutions in International Relations[END_REF]. The compliance with concluded agreements is enforced by other groups also such as median voters. As they constitute a large part of population, therefore cannot be ignored in democratic regimes.

Trade agreements increase domestic costs in the event of contract breach [START_REF] Mitchell | International Institutions and Compliance with Agreements[END_REF][START_REF] Mitchell | International Institutions and Compliance with Agreements[END_REF][START_REF] Tomz | Domestic Audience Costs in International Relations: An Experimental Approach[END_REF] thus enhancing the reliability of the host governments that they will work for the continuity of policies. Also, the cost of reneging on commitment increases with legalization where the potential of opportunistic behavior is high [START_REF] Abbott | Hard and Soft Law in International Governance[END_REF]. Therefore, we argue that domestic cost of reneging on the deeper commitments such as FTA-CU will be higher than the PSA. Deeper trade agreements offer the governments to gain credibility (by increasing costs and locking-in) both at domestic and international level. There exist two types of costs to be beared by a democratic government in the event of noncompliance: International reputational costs [START_REF] Mitchell | International Institutions and Compliance with Agreements[END_REF][START_REF] Mitchell | International Institutions and Compliance with Agreements[END_REF][START_REF] Smith | The Politics of Dispute Settlement Design: Explaining Legalism in Regional Trade Pacts[END_REF] and Domestic audience cost [START_REF] Fearon | Domestic political audiences and the escalation of international disputes[END_REF][START_REF] Tomz | Domestic Audience Costs in International Relations: An Experimental Approach[END_REF]. Since the governments, where the regime type is democratic, seek the support of median voter because they find it more useful to comply with deeper and broader arrangements as the median voter is more concerned (with actions of government) here with respect to the partial arrangements. As anecdotal evidence for this argument, Tomz find the support based on the experimental surveys.

The domestic politics play a role in developed countries also whose investors make investments abroad also in ensuring credibility. The barriers to trade and investment restrict the prospects of benefitting from differences in capital costs between countries. [START_REF] Chase | Economic Interests and Regional Trading Arrangements: The Case of NAFTA[END_REF] finds the support for the argument that reducing barriers through regional trading agreement significantly help investors to move their production facilities. Thus, the investors, being part of the domestic pressure groups and in order to benefit from larger market and at the same time to secure their investments, force their governments to conclude the deeper type of agreement ascertaining the high credibility of policy commitment. [START_REF] Koremenos | The Rational Design of International Institutions[END_REF] argued that nonstate actors participate with increasing frequency in institutional design. They further argued that trade agreements are self conscious creation of states (and to a lesser extent, of interest groups and corporations). Arguing on the same logic but regarding the domestic institutions of U.S., [START_REF] Bhagwati | Termites in the Trading System: How Preferential Agreements Undermine Free Trade[END_REF] maintains that ethnic groups and bureaucracies pushed for particular PTAs. The above arguments lead us to the following hypothesis: H2: The more the country tends towards democracy, the significant positive effect of FTA-CU on FDI inflows rises whereas the effect of PSA remains insignificant.

Empirical Analysis

Data

The sample comprises an unbalanced panel of 122 Non-OECD developing countries from the 1970 to 2005. The data for the dependant variable, FDI inflows as a percentage of GDP is taken from the online version of UNCTAD's Handbook of Statistics. The primary source of the data on Partial Scope Agreements and Free Trade Agreements/Custom Unions is WTO11 . There exist many agreements that have not been notified to WTO. For that matter, the comprehensive database of preferential trade agreements compiled at Mc Gill University is consulted12 . Data on variable POLITY which signifies countries' tendency towards democracy is taken from Polity IV Project. Number of Bilateral Investment Treaties signed by specific country is taken from UNCTAD 13 . Data on Political Constraints is extracted from the database compiled by Henisz Witold. Data on Population and GDP per capita is accessed through Penn World Table . GDP growth variable is calculated from GDP variable in constant ( 2005) dollars. GDP per capita is also in constant ( 2005) dollars. The descriptive statistics for variables can be seen in Table (1).

Methodology and Results

Following the introduction of variables, we turn to the empirical linkages between the regime type, trade agreements and FDI flows. The fixed-effect panel analysis comprising 122 developing countries and the entire period of 1970-2005 is performed. The rationale for using fixed effects is that they control for omitted unobservable factors which is source of endogeneity bias. There are two distinct instances of omitted unobservable variables. First, the countries may self select into trade agreements. As [START_REF] Downs | Is the good news about compliance good news about cooperation?[END_REF] argue that governments tend to conclude only those agreements that oblige them to do what they are already doing or want to do. Second, there exist country specific characteristics which are constant over time. If these country characteristics have an impact on the FDI inflows and one or more explanatory variables (notably the trade agreements) then the structural disturbance (which captures heterogeneity across units of observation) will be correlated with those explanatory variables. Unlike other estimation techniques, for example OLS on cross-section data that produce biased estimates or randomeffects models that assume no correlation between unobservables (a i,t ) and the variables of cumulative FTA-CU and cumulative PSA variables, the fixed effects estimator is an unbiased and consistent estimator of the treatment effect of trade agreements.

In order to estimate the treatment effect of heterogeneous trade agreements on FDI flows into developing countries and the conditional effect of regime type on these heterogeneous agreements, the following equation is estimated: POLITY The dependant variable is in fact the FDI as percentage of GDP. As can be seen all the variables are lagged. The variables showed the trend; therefore they are de-trended also to avoid spurious correlation among the dependant and independent variables.

The results are presented in Table (2). We start the analysis from the impact of regime type in attracting FDI inflows in model ( 1) which is insignificant. Among the control variables of population, GDP Growth and GDP per capita, the variable GDP Growth is positive and significant at 10 percent level. In estimation (2), the effect of international institutions is added in model (1). In the presence of control variables and regime type, the effect of Bilateral Investment Treaties and GATT-WTO membership is significantly positive at 10 percent level. More the country concludes BIT, the more the FDI inflows it experiences. GATT-WTO membership also increases the prospects for a country to attract investments. In model (3), two different types of trade agreements are included such as Free Trade Agreements-Custom Unions (FTA-CU) and Partial Scope Agreements (PSA). The impact of FTA-CU is positive and statistically significant at 10 percent level whereas PSA are also showing positive sign but insignificant. This confirms our first hypothesis (H1) that by concluding more FTA-CU the country gains the confidence of foreign investors, signals its credibility of commitments and thus attract higher FDI inflows. The PSA do not play any role in attracting FDI. The variable of regime type (i.e. POLITY) remains insignificant showing that democracy itself does not signal to foreign investors about the security of their investments. The control variables are showing the same behavior. Population of a country and GDP per capita are insignificant though positive. The last model (4) shows the interaction effect of both types of trade agreements in addition to all other explanatory variables. The sign of the interaction variable between cumulative FTA-CU and POLITY is positive and significant at 5 percent level whereas the interaction effect of cumulative PSA and POLITY is not significantly different from zero. The result confirms our second hypothesis (H2). This shows that more the regime type tends towards democracy, the effect of full-fledged agreements such as FTA-CU is larger and significant to attract FDI. The democratic regime moderates significantly the effect of full-fledged trade agreements on FDI inflows whereas it does not condition the impact of partial scope agreements. The interaction effects can be shown through a graph. Figure 2 shows the effect of FTA-CU on FDI inflows moderated by the democratic level (Polity).

FDI inflows are boosted when a highly democratic country concludes more FTA-CU. Although the effect of low democracy level with larger amount of FTA-CU concluded is at the increasing trend but this is very small. Countries with the higher level of democracy and lower FTA-CU experience lower FDI inflows depicting the importance of FTA-CU in boosting FDI.

The marginal effect of FTA-CU and PSA are calculated for each of the variables conditional on one another along with 99 percent confidence intervals based on variance-covariance matrix [START_REF] Brambor | Understanding Interaction Models: Improving Empirical Analyses[END_REF]. Figure (2) displays the marginal effect for FTA-CU, conditioned by regime type (polity) estimated in model (4). It clearly shows that FTA-CU do not have significant effect on FDI in the countries where polity score is low (i.e. countries having autocratic regime type), whereas, as the level of democracy rises, the FTA-CU show significant and positive effect on FDI. In figure (3), we analyzed the effect of domestic regime type conditioned by FTA-CU. Here, the effect of regime type on FDI is insignificant at any number of FTA-CU signed. In other words, the FTA-CU to which the country is party, does not condition the effect of regime type on FDI and the effect cannot be distinguished from zero at any point. The strict exogeneity of the results is also tested by using a method suggested by [START_REF] Baier | Do free trade agreements actually increase members' international trade?[END_REF]. For this, future level of cumulative FTA-CU is introduced in the regression model. If the changes of this independent variable are strictly exogenous to FDI flow changes, cumulative FTA-CU t+1 should be uncorrelated with the FDI flow and so the coefficient must be insignificant. The result of this variable confirms this and therefore there is no feedback effect.

Concluding Remarks

Foreign Direct Investment (FDI) inflows have recently been the most persistent source of capital inflows in developing countries. This extensive growth of FDI has, consequently, given rise to the competition among policy makers in developing countries and they pursue to conclude international trade agreements to boost foreign direct investment inflows. But, the trade agreements are heterogeneous in nature and there is difference on their impact in attracting FDI. Full-fledged agreements signal credibility of commitments. Also there is debate whether the level of democracy encourages foreign investors to invest. The goal of this paper was to explore in detail the role of heterogeneous international trade agreements in their role to attract FDI flows and to examine the conditional effect of level of democracy in the country on different types of agreements in order to attract FDI flows. Accordingly, the results can be summarized as follows: In the fixed-effects panel analysis, covering a period of 36 years, the impact of full-fledged agreements is found to be significant and positive. They signal the credibility of the host government. At the same time, the impact of partial scope agreements is proved to be insignificant. The level of democracy itself is insignificant but its conditional effect on full-fledged agreements is significant. The moderating effect of democracy on partial scope agreements is found to be insignificant. This shows that democratic regimes do care more about their commitments when they conclude the agreements ascertaining strong dispute settlement mechanisms. These agreements increase the reputational cost for democratic regimes in case of reneging from their commitments. The impact of other international institutions (Bilateral Investment Treaties and GATT-WTO membership) is found to be positive and significant in the earlier estimations but after the introduction of trade agreements, these institutions lost their significance which could be a signal that countries rely more on trade agreements to boost investment rather than other types of institutions. The strict exogeneity of the results is also tested by using a method suggested by [START_REF] Baier | Do free trade agreements actually increase members' international trade?[END_REF] and no feedback effect is found. This research could be continued by introducing individual clauses of trade agreements regarding investment and the level of legalization as democracies are more prone to respect higher commitments. From that one could investigate the heterogeneity in trade agreements and analyze their effect on FDI.

Figure ( 1 )

 1 Figure (1) FTA-CU, PSA and FDI Inflows

  Figure (4) shows the marginal effect of PSA on FDI moderated by regime type in country whereas figure (5) depicts the effect of polity on FDI moderated by PSA. Both figures prove that the effects are insignificant. Partial scope agreements do not have significant effects on FDI moderated by polity.

Figure ( 2 )

 2 Figure (2) MARGINAL EFFECT OF FTA-CU AS A FUNCTION OF POLITY

Table ( 1

 ( ) DESCRIPTIVE STATISTICS

	Variables	Mean	Std. Deviation	Min	Max
	FDI	2.095	4.798	-65.411	92.104
	Cumulative FTA-CU	0.609	1.478	0	17
	Cumulative PSA	0.631	0.967	0	7
	Democracy (Polity)	-1.056	6.828	-10	10
	GATT-WTO Membership	0.547	0.498	0	1
	Cumulative BIT	7.279	13.456	0	107
	Log (Population)	15.921	1.411	12.292	20.990
	GDP Growth	3.960	8.563	-66.972	168.008
	GDP per capita	8.101	0.984	5.032	11.491

Notes: (FDI): Foreign Direct Investment, (FTA-CU): Free Trade Agreements and Customs Unions, (PSA): Partial Scope Agreements, (Polity): democratic level, (GATT-WTO): membership in international organizations (General Agreement on Tariffs and Trade -World Trade Organization), (BIT): Bilateral Investment Treaties. All variables are de-meaned by country and de-trended. (See section 4 for details). These statistics are based on one-year lagged values.

Table ( 2

 ( ) CONDITIONAL EFFECT OF REGIME TYPE AND HETEROGENEOUS TRADE AGREEMENTS

		(1)	(2)	(3)	(4)
	Cumulative FTA-CU			0.158* (0.088) 0.285** (0.134)
	Cumulative PSA			0.140 (0.188)	0.299 (0.185)
	POLITY	0.013 (0.020)	0.004 (0.019)	0.009 (0.019)	0.011 (0.019)
	Cumulative BIT		0.022* (0.013)	0.016 (0.013)	0.008 (0.014)
	GATT-WTO Membership		1.181* (0.675)	1.080 (0.703)	1.009 (0.666)
	Cumulative FTA-CU (i+1)				-0.069 (0.107)
	Population	-0.010 (1.244)	0.629 (1.118)	1.083 (1.265)	0.522 (1.328)
	GDP Growth	0.055* (0.032) 0.055* (0.032) 0.054* (0.032)	0.056 (0.034)
	GDP per capita	0.577 (0.651)	0.222 (0.682)	0.235 (0.700)	0.275 (0.748)
	Cumulative FTA-CU * POLITY				0.053** (0.024)
	Cumulative PSA * POLITY				-0.009 (0.020)
	Constant	-0.000 (0.027) -0.000 (0.028) -0.000 (0.029)	-0.038 (0.043)
	No. of Countries	122	122	122	119
	Observations	3565	3565	3565	3330
	R-squared	0.015	0.022	0.024	0.027

Notes: (FTA-CU): Free Trade Agreements and Customs Unions, (PSA): Partial Scope Agreements, (Polity): democratic level, (GATT-WTO): membership in international organizations (General Agreement on Tariffs and Trade -World Trade Organization), (BIT): Bilateral Investment Treaties. Regression with robust standard errors for correction of heteroscedacity in parantheses. ** denotes significance at 5 percent; * significant at 10 percent. All variables are de-meaned, de-trended and one-year lagged.

Although trade agreements are negotiated for trade related issues and are intended to increase trade flows, growing number of trade agreements contain investment issues.

Currently, there are 157 signatory States to ICSID convention (http://icsid.worldbank.org).

Although, there is debate that even recent Free Trade Agreements do not offer hundred percent free trade as states do often exclude sensitive sectors such as agriculture, still here we treat them as full-fledged agreements here as they are still better than partial scope arrangements in liberalizing trade and investment and legal enforcement of resolving disputes.

[START_REF] Kahler | Legalization as Strategy: The Asia-Pacific Case[END_REF] argues hard legalization is less significant in looser economic integration and in which the states do not pursue deep integration such as APEC (Asia-Pacific Economic Cooperation), therefore not providing assurance of sincere commitments. APEC is characterized by low levels of precision, delegation, and obligation and not a successful model of regional economic integration[START_REF] Abbott | NAFTA and the Legalization of World Politics: A Case Study[END_REF].

According to WTO, NAFTA is recognized as FTA and EC/EU as CU.

Developing countries in general, as their domestic institutions and political conditions are not stable as compared to developed economies.

The indirect effect of trade agreements on FDI can be seen from the fact that these arrangements lower tariff barriers leading to increased trade flows. FDI could be closely related to trade flows, either as complementary such as intra-firm or inducing substitution to trade.

Median voters are sometimes called 'selectorates' mentioned by[START_REF] Mansfield | Democracy, Veto Players and the Depth of Regional Integration[END_REF] as they make up a broader portion of society in a democracy and choose the leader and keep them in office.

Labor-rich countries are developing countries, which are the focus of our analysis here, who obtain benefits from FDI, which comes through institutionalized arrangements providing more credibility.

Investments are encouraged in trade agreements and for that matter the design of arrangement is important. The argument is relating trade and investment; the inclusion of wide range of products is entailed in the formation of deeper agreements.

http://www.wto.org/english/tratop_e/region_e/region_e.htm

http://ptas.mcgill.ca/

http://www.unctad.org/Templates/Page.asp?intItemID=2344&lang=1


Keywords: L2 teacher beliefs, teacher cognitions, teacher perceptions, pedagogical beliefs, teacher thinking, metacognitive knowledge, hidden agenda

This state-of-the-art article gives a synopsis of research conducted on L2 teacher beliefs. The first part of the paper presents a brief historical overview of the conceptualizations and terms used in L2 teacher beliefs. The second part of the paper provides a panorama of diverse research studies that looked into the relationships between L2 teacher beliefs and various L2 related inquiries in diverse contexts. The paper concludes arguing for a need for further research to investigate interrelationships between L2 teacher and L2 learner belief systems and their influence on learning.

A Synopsis of L2 Teacher Belief Research Introduction

Researching teacher beliefs is proved crucial in comprehending schemes teachers' use when implementing their teaching. Teachers' beliefs and their impact on teaching and learning have been a significant issue for educational inquiry for a quarter of a century. Research conducted in foreign/second language (henceforth L2) teacher beliefs has looked into teacher beliefs in diverse L2 teaching contexts. Such studies have sought to understand L2 teacher belief systems and complex relationships between these beliefs and various educational issues. In this state of the art paper, the author presents a synopsis of teacher belief research by referring to both the teacher education and L2 teacher belief literatures. The literature concerning L2 teacher beliefs is extensive and the studies that are presented in this article represent only the tip of the iceberg. The terms used in L2 teacher belief research vary depending on the theoretical standpoints taken and the domain these terms originate. Thus for the sake of consistency and uniformity, in this paper the term 'L2 teacher belief' is used as an umbrella term to cover all other conceptualizations.

In the first part of the paper, the author outlines the evolution of the 'teacher belief' concept in relation to the approaches and theoretical standpoints employed in teacher education programmes. The brief historical overview presented in this first part focuses primarily on issues concerning when, how, and why teacher beliefs gained importance. This first part also presents different terms used in L2 teacher belief studies. In the second part of the paper, the author looks into the L2 teacher belief studies by grouping them under five main categories. The grouping was done by taking the research phenomenon investigated as basis. The conclusion part suggests some queries for further research to investigate interrelationships between L2 teacher and L2 learner belief systems and their subsequent influence on teaching and learning.

A Historical Overview of L2 Teacher Beliefs

Influence of the behaviourist view on teacher education

From the 1960s to the late 1970s, the period which behaviourism dominated foreign and second language teaching, L2 teaching was considered as a skills-based profession. During this period, teachers were not considered as having 'mental lives' and teacher education programs consisted of prescriptive techniques [START_REF] Freeman | The hidden side of the work: Teacher knowledge and learning to teach[END_REF][START_REF] Tsui | Teacher education and teacher development[END_REF]. In teacher education programmes teacher trainers determined the desirable teaching behaviour by carefully shaping teaching skills. [START_REF] Freeman | The hidden side of the work: Teacher knowledge and learning to teach[END_REF] explained that until the mid 1970s teachers were viewed as performers and skill learners who were reciting other people's ideas. The primary aim of teacher education programmes was to make sure that teachers had mastered the content knowledge they were expected to teach [START_REF] Johnson | The sociocultural turn and its challenges for second language teacher education[END_REF]). Thus, teacher education programs focused mainly on classroom methodologies, teaching techniques, and theoretical principles. [START_REF] Freeman | The hidden side of the work: Teacher knowledge and learning to teach[END_REF] stated that before the 1970s, teacher education research was based on process-product paradigm, which assumed that teaching is a linear activity. This paradigm viewed teacher behaviour as the cause and student learning as the effect. It under estimated the role of individual differences and teacher beliefs. From this perspective, L2 teaching was viewed as merely mastering the linguistic content and sets of isolated teacher behaviours (Showler 2000).

Influence of the cognitivist view on teacher education

In the late 1970s, the notion that teaching is not simply the transmission of knowledge but also involves norms and beliefs started to be accepted. However, the real change in teacher education programmes began in the 1980s with the paradigm shift from the behaviourist view to a cognitivist view. This paradigm shift called for the employment of an approach whereby student teachers build their own philosophies of teaching and become aware of their own learning processes. [START_REF] Freeman | The hidden side of the work: Teacher knowledge and learning to teach[END_REF] stated that the years from the 1980s to 1990s were significant in reconceptualization of teachers' practices and their mental lives. He maintained that during this period the fact that teachers' have complex mental lives was fully accepted. The teacher education field thus started to realize that teacher trainers must inquire into teachers' cognitive worlds and personal teaching practices in order to understand how language teachers learn to teach. With the developments of research in cognitive psychology, in the early I990s interest in teacher belief research received notable attention [START_REF] Freeman | The hidden side of the work: Teacher knowledge and learning to teach[END_REF] and it gained impetus in the late 1990s. [START_REF] Freeman | The hidden side of the work: Teacher knowledge and learning to teach[END_REF] acknowledged the 1990s up to 2000s as the period of consolidation as regards the changing views of teacher teaching and thinking processes. He noted that, during this period of consolidation, research paradigms shifted to the postmodern perspective, which viewed teachers' thought processes as highly context dependent. From this postmodern perspective, teachers' way of thinking was considered to be the function of their backgrounds, experiences and their social contexts [START_REF] Freeman | The hidden side of the work: Teacher knowledge and learning to teach[END_REF][START_REF] Hall | Teachers and content area reading: Attitudes, beliefs and change[END_REF][START_REF] Flores | Contexts which shape and reshape new teachers' identities: A multi-perspective study[END_REF]. This viewpoint emphasized that each teacher understands and perceives his/her classrooms realities differently from others. [START_REF] Borg | Teacher cognition in language teaching: A review of research on what language teachers think, know, believe and do[END_REF] viewed the same period (from 1990 to 2000) as the decade of change as regards L2 teacher cognition. He revisited the research done on language teacher cognition and listed sixty-four research studies from the 1970s to 2002, forty-seven of which were conducted after 1995.

Influence of sociocultural views on teacher education

Although the cognitive perspective still dominates research in most aspects of foreign/second language domain, for the last two decades, some scholars have taken a turn towards sociocultural orientations [START_REF] Johnson | The sociocultural turn and its challenges for second language teacher education[END_REF][START_REF] Zuengler | Cognitive and sociocultural perspectives: Two parallel SLA worlds?[END_REF]. From the sociocultural standpoint teacher learning and thinking is viewed as social, situated in physical and social contexts [START_REF] Johnson | The sociocultural turn and its challenges for second language teacher education[END_REF]. This new epistemological orientation has been increasingly establishing new paradigms in the second/foreign language teaching and having a notable impact on research done in this field. The L2 literature provides us with many studies taking this new epistemological stance in L2 learner belief research (e.g. [START_REF] Alanen | A sociocultural approach to young language learners' beliefs about language learning[END_REF][START_REF] Aro | Effects of authority: voicescapes in children's beliefs about the learning of English[END_REF][START_REF] Dufva | Beliefs in dialogue: A Bakhtinian view[END_REF][START_REF] Kalaja | Research on students' beliefs about SLA within a discursive approach[END_REF][START_REF] Negueruela-Azarola | Beliefs as conceptualizing activity: A dialectical approach for the second language classroom[END_REF][START_REF] Yang | Sociocultural analysis of second language learner beliefs: A qualitative case study of two study-abroad ESL learners[END_REF]. However, compared to the L2 learner belief research, the L2 teacher belief research has relatively fewer studies that have employed sociocultural orientations (e.g. Borg 1998a[START_REF] Borg | Data-based teacher development[END_REF][START_REF] Farrell | Reflective practice in an EFL teacher development group[END_REF][START_REF] Johnson | The sociocultural turn and its challenges for second language teacher education[END_REF][START_REF] Johnson | Second language teacher education: A sociocultural perspective[END_REF].

L2 teacher belief terminology

The L2 teacher belief literature provides us with diverse terminology that different scholars used to define the teacher belief concept. In the 1980s, with the paradigm shift from behaviourist perspective to cognitivist perspective, scholars looked for new terminology to explain the notions that emerged with the change in theoretical standpoints.

According to the mainstream educational literature Philip Jackson was the first to mention that teachers have mental lives in his book called 'Life in classrooms ' (1968) and he coined the term 'hidden curriculum' to explain the notion that teaching involves norms, beliefs, and socially approved knowledge. According to Philip Jackson, the hidden curriculum consists of implicit values and principles that the teacher acquires through the process of schooling. The educational literature provides us with different terms and explanations of the same phenomenon. [START_REF] Freeman | The hidden side of the work: Teacher knowledge and learning to teach[END_REF] referred to this issue as 'teachers' mental lives' and 'hidden agendas'. Freeman stated that teachers' mental lives (teacher's beliefs, attitudes, and their interpretation of official theory) represent the hidden side of teaching. [START_REF] Biggs | Student learning research and theory -where do we currently stand?[END_REF] explained this notion by using the terms 'espoused theory' (teachers' theoretical knowledge about teaching) and the theory-in-use (what teachers actually do). Biggs claimed that teachers, influenced by their beliefs, interpret and modify the official theory (i.e. official curriculum) to adjust it to their beliefs. To refer to the same notion the terms 'public theory' and 'private theory' are also used [START_REF] Ainscough | Reflection in action: Increasing teacher awareness of the learning needs of specific socio-cultural groups[END_REF]).

In the L2 teacher belief literature, the above-mentioned notions are used under different labels. Often, researchers who studied L2 teacher beliefs have used different labels to refer to similar notions or they have used the same label to refer to different concepts. For instance, Simon Borg who has widely published on L2 teacher beliefs used the term 'personal pedagogical systems '(1998c) to refer to L2 teacher beliefs, a year later he used the term teachers' theories (Borg1999b) and he used 'teacher cognition' (Borg 2003a[START_REF] Borg | Teacher cognition in grammar teaching: A literature review[END_REF][START_REF] Borg | Teacher cognition and language education: Research and practice[END_REF] to refer to the stores of beliefs teachers hold about themselves and their teaching practices. He later used the term teacher beliefs to refer to the concepts mentioned above (Borg 2011a[START_REF] Borg | Teachers' Beliefs about Learner Autonomy[END_REF]. Borg (2003a[START_REF] Borg | Teacher cognition in grammar teaching: A literature review[END_REF] reviewed L2 teacher belief studies which were carried out from the1970s until the year 2001 and listed the following terms: Borg (1998c) personal pedagogical systems; Breen et al. (2001) pedagogic principles;Burns (1996) theories for practice; Crookes & Arakaki (1999) routines, Freeman (1993) conceptions of practice; Gatbonton (1999) Since the 2000s the L2 teacher belief terminology has been regrouping under more commonly accepted and used terms. The term 'belief' seems to be gaining wider recognition among the L2 researchers. The author searched the Google scholar database and has listed the most commonly used key words in L2 teacher belief literature since 2004: a) teacher beliefs (e.g. [START_REF] Altan | Pre-service EFL teachers' beliefs about foreign language learning[END_REF][START_REF] Basturkmen | Teachers' stated beliefs about incidental focus on form and their classroom practices[END_REF]Borg 2011a[START_REF] Borg | Teachers' Beliefs about Learner Autonomy[END_REF][START_REF] Borg | Teachers' beliefs and practices regarding learner autonomy[END_REF][START_REF] Gabillon | L2 learner's beliefs: An overview[END_REF][START_REF] Gabillon | Learner Beliefs on L2 Attitudes and Motivation: An Exploratory Study[END_REF]Gabillon , 2012a[START_REF] Gabillon | Revisiting Foreign Language Teacher Beliefs[END_REF][START_REF] Lacorte | Teacher beliefs and practices in advanced Spanish classrooms[END_REF][START_REF] Mattheoudakis | Tracking changes in pre-service EFL teacher beliefs in Greece: A longitudinal study[END_REF]

Research Methodologies Used in L2 Teacher Belief Research

Research studies conducted in L2 teacher beliefs have used diverse research methodologies depending on their theoretical standpoints and the phenomena they intended to investigate. Studies studies conducted in L2 teacher beliefs have looked into different aspects of L2 teacher beliefs and incorporated theories from various disciplines. These studies depending on their theoretical standpoints have used both qualitative and quantitative research methodologies and made use of different research instruments such as questionnaires, interviews, diary/journal entries, meta-talk (explicit talk about grammar), field notes, written logs, group meetings, individual meetings, group discussions, classroom observations, video recordings and so forth.

Research into L2 teacher beliefs can be broadly divided into two main groups as regards the methodologies and approaches they have employed: a) approaches based on mainstream cognitive orientations; and b) approaches based on sociocultural orientations [START_REF] Alanen | A sociocultural approach to young language learners' beliefs about language learning[END_REF][START_REF] Johnson | The sociocultural turn and its challenges for second language teacher education[END_REF][START_REF] Johnson | Second language teacher education: A sociocultural perspective[END_REF].

The majority of the studies conducted on L2 teacher beliefs employed the mainstream cognitive approaches as research orientations. Research studies that used cognitive orientations have considered the belief construct as an internal autonomous property of the mind, and investigated L2 teachers' 'higher order representations' (i.e. beliefs that the individual is aware of, conscious about) to understand the types of beliefs the teachers had. Many of these studies used questionnaires and interviews as research instruments.

The L2 belief studies that employed sociocultural orientations emphasized the importance of the context and individual differences. This new perspective has resulted in a paradigm shift toward more qualitative research approaches [START_REF] Johnson | Second language teacher education: A sociocultural perspective[END_REF]. The researchers who employed sociocultural research paradigms carried out research in naturally occurring settings and sought for deeper understanding of the phenomena and the participants' lived experiences. From this perspective, qualitative research orientations such as case studies, narratives, diary studies, life stories, and action research studies have been considered more appropriate to explore teachers' thinking and their teaching contexts (Johnson2006).

A Synopsis of Research on L2 Teacher Beliefs

In this paper the researcher has grouped the research conducted in L2 teacher beliefs under five main inquiry domains according to the phenomena they investigated: a) the studies that investigated the relationship between L2 teacher beliefs and their classroom practices; b) the studies that investigated L2 teacher beliefs as a source for teacher awareness and professional growth; c) the studies that investigated L2 teachers' beliefs about educational innovation; d) the studies that investigated the nature of L2 teacher beliefs; e) the studies that investigated discrepancies between teachers and learners' L2 beliefs.

The studies that investigated the relationship between L2 teacher beliefs and their classroom practices

The relationships between L2 teachers' beliefs and their classroom practices have been one of the most investigated L2 teacher belief research inquiries. Research done in various L2 contexts, has attempted to understand what beliefs guide L2 teachers' classroom practices (e.g. [START_REF] Johnson | The emerging beliefs and instructional practices of preservice English as a second language teachers[END_REF][START_REF] Tercanlioglu | Pre-service EFL teachers' beliefs about foreign language learning and how they relate to gender[END_REF]). The majority of the L2 Teacher belief studies that investigated relationships between teachers' beliefs and their actual classroom practices aimed at discovering possible links between teacher beliefs and classroom practices (see [START_REF] Basturkmen | Teachers' stated beliefs about incidental focus on form and their classroom practices[END_REF]). Such studies have been mainly concerned with how theoretical recommendations are interpreted and reflected in teachers' classroom practices (see [START_REF] Borg | Teachers' theories in grammar teaching[END_REF]. Many studies that investigated the links between L2 teacher beliefs and classroom practices have discovered very complex relationships between teacher beliefs and classroom practices. Many of these studies concluded that there could be discordances between the teachers' stated beliefs and their actual classroom practices. Only a few of these studies were able to find direct correlations between the teachers' stated beliefs and their classroom practices.

For instance, [START_REF] Basturkmen | Teachers' stated beliefs about incidental focus on form and their classroom practices[END_REF] study looked into the relationship between three teachers' stated beliefs about and practices of focus-on-form in ESL communicative lessons. The study intended to explore the teachers' stated beliefs about focus-on-form practices and their actual implementation and management of focus-on-form during their communicative teaching lessons. The results Basturkmen et al. obtained illustrated some inconsistencies in the teachers' stated beliefs. The research findings indicated a weak relationship between the teachers' practices and stated beliefs regarding focus-on-form.

Similarly, [START_REF] Kennedy | Teacher attitudes and change implementation[END_REF] compared a teacher's stated attitudes with her observed attitudes towards error correction. Their observation illustrated that there was discordance between the teacher's expressed attitude towards error correction and her actual behavior in classroom. The authors concluded that the attitude and behavior relationship is more complicated than what people usually think of. Inspired by Ajzen's Theory of Planned Behavior (1991) they explained that attitude is not the immediate antecedent of a person's behavior. Using Ajzen's model they explained that the individual's behavior is determined by his/her intention and that the intention formation is the outcome of the interplay between, attitudes, subjective norms, and perceived behavioural control. Furthermore, they maintained that each of these three elements, attitudes, subjective norms, and perceived behavioural control are influenced by beliefs.

In the same vein, [START_REF] Breen | Making sense of language teaching: teachers' principles and classroom practices[END_REF] study discovered inconsistencies in the principles the teachers adopted and in their classroom practices. In their study, they looked into 18 ESL teachers' beliefs as regards their classroom practices and the underlying principles directing these classroom practices. The main objective of the study was to help the teachers to be aware of the relationships between their teaching principles and classroom practices. To obtain the data the researchers used qualitative/interpretative research methodologies such as classroom observations following teacher interviews and elicitation techniques. The objective of using these research tools were to help teachers describe their classroom practices and help them explain the rationale and the pedagogical beliefs guiding their classroom practices. Their research findings showed that besides the existence of diverse teaching principles and their consequent practices, some commonly shared principles were also associated with different types of practices. Moreover, the results illustrated that a teaching practice, which was commonly used by the majority of the group members, was based upon diverse principles. However, Breen et al. stated that a closer examination of the whole group data revealed some regular patterns between these teachers' practices and their underlying schemes.

Chacón's study (2005) has found strong relations between a group of English as a Foreign Language (EFL) teachers' perceived competence and their strong sense of self-efficacy about their teaching practice. She claimed that teachers' perceived capabilities to teach have a direct impact on their teaching practices. The findings also indicated that the teachers' efficacy for instructional strategies was higher than their efficacy for management and engagement. [START_REF] Chacón | Teachers' perceived efficacy among English as a foreign language teachers in middle schools in Venezuela[END_REF] noted that the connections between the teachers' self-efficacy and their perceived English language proficiency highlighted the perceived importance of content knowledge. Thus, she concluded that EFL teachers' perceived competence in English leads them to build a strong sense of self-efficacy about their teaching practice.

The studies that investigated L2 teacher beliefs as a source for teacher awareness and professional growth

Most scholars have viewed teacher beliefs as resources for self-reflection and self-development (see [START_REF] Borg | Data-based teacher development[END_REF][START_REF] Farrell | Reflective practice in an EFL teacher development group[END_REF]. [START_REF] Flores | Contexts which shape and reshape new teachers' identities: A multi-perspective study[END_REF] claimed that coping with the demands of teaching is a continual process of analysis of one's own beliefs and practices and this reflective process leads to self-development. Thus, the idea that L2 teachers' beliefs could be used as a source for teacher reflection in teacher development practices has instigated a number of research studies.

Borg's study (1998b)--data based teacher development--perceived teacher reflection as a major source for professional growth and based his methodological assumptions on this principle. In this particular research study, Borg's aim was to help the teachers uncover their own beliefs using research activities (see [START_REF] Borg | Data-based teacher development[END_REF]. Thus, he used authentic teaching data as part of a teacher development course to sensitize teachers to the role their beliefs played in their teaching and to help them discover how their own practices were shaped by their beliefs. He called this teacher development activity 'data-based teacher development'. He claimed that using authentic teaching data provided teachers with mirror image of their teaching and provided ideal platform for self-reflection and professional growth. [START_REF] Breen | Making sense of language teaching: teachers' principles and classroom practices[END_REF] study looked into ESL teachers' beliefs as regards their classroom practices and the underlying principles directing these classroom practices. The main objective of the study was to help the teachers to be aware of the relationships between their teaching principles and their classroom practices. To obtain the data the researchers used qualitative/interpretative research methodologies such as classroom observations following teacher interviews and elicitation techniques. The objective of using these research tools were to help teachers describe their classroom practices and help them explain the rationale and the pedagogical beliefs guiding their classroom practices. [START_REF] Farrell | Reflective practice in an EFL teacher development group[END_REF] investigated three experienced EFL teachers' reflections regarding their classroom practices. Farrell viewed teacher reflection as 'teachers' learning through a critical analysis of their own beliefs about teaching and learning'. He argued that reflective teachers take more responsibility for their actions. Farrell used various kinds of research tools such as field notes, written logs, group meetings, individual meetings/observations, participants' written reactionjournals, and written artefacts. His data analysis showed that the teachers' discussions centred mainly on their personal theories and their problems related to their teaching. He also discovered that these three teachers used group meetings for critical reflection.

The studies that investigated L2 teachers' beliefs about educational innovation

For the last decade, language teachers' beliefs as regards educational innovation have received the utmost attention and the research in this area seems to have gathered momentum. The foreign language teaching field has renewed itself continually because of the constant emergence of new ideas, educational innovations and new research paradigms. To cope with these dynamism and innovations L2 teachers have been expected to keep up with these changes. Thus understanding L2 teacher beliefs have been viewed crucial as regards implementing innovation. It is widely argued that consulting teachers' beliefs when testing or implementing an educational innovation strengthens the sense of ownership and supports professional growth (Carless, 2003;[START_REF] Ellis | How culturally appropriate is the communicative approach?[END_REF]Todd, 2006). Recent L2 research studies have explored teachers' beliefs before testing educational innovation and planning language instruction. In some contexts, L2 teacher beliefs and teachers' understanding of innovation have been investigated indirectly under the topic of 'testing an innovation'. In such research studies teacher beliefs have constituted subsequent research outcomes. Some other research studies, on the other hand, based their assumptions on the significant role teacher beliefs played in the success of such innovations and consulted teachers' beliefs before implementing innovation (see Todd, 2006).

Carless ( 2003) stated that most of the time teachers are asked to implement educational innovations developed by external agents who are not always familiar with local teachers' viewpoints and their teaching contexts. He noted that implementing an innovation is a demanding matter that requires change and adaptation. Thus, he argued that unless teachers' perspectives are taken into account, implementing something new might be unwelcome (Carless, 2003;Todd, 2006). Todd sustained that obtaining information on teachers' beliefs when introducing an innovation helps manage change and encourages an ongoing teacher development.

Todd's ( 2006) study illustrated how consulting teachers' belief could affect the form of the intended innovation. The study 'continuing change after the innovation' reported on a group of teachers' beliefs about a task-based curriculum innovation. The aim of his study was to help the teachers reveal their beliefs about the innovation they were implementing. He called this type of innovation as bottom-up innovation. Todd noted that contrary to top-down approaches bottomup innovation requires involvement of the teachers. The findings of the study illustrated that the originally planned 'strong' version of the task-based learning model was modified and 'weakened' because the teachers believed in the effectiveness of the explicit teaching of linguistic forms and assessment through formal exams. Similarly, [START_REF] Zheng | Task-based learning and teaching in China: Secondary school teachers' beliefs and practices[END_REF] investigated three secondary school teachers' beliefs about the implementation of the Task-Based Learning in their classrooms. This qualitative research study discovered that each of these three teachers interpreted and implemented the principles of task-based learning in accordance with their beliefs (understanding) and the contextual factors (e.g. large classes) Many teacher belief studies have indicated that reforms in education do not always receive immediate acceptance. [START_REF] Underwood | Teacher beliefs and intentions regarding the instruction of English grammar under national curriculum reforms: A Theory of Planned Behavior perspective[END_REF] study drew upon the Theory of Planned Behaviour to anticipate the impact of the Japanese national curriculum concerning the integration of English grammar teaching with communication-oriented teaching. The research results obtained indicated that the teachers believed the adoption would be hindered because of their belief that communication-oriented grammar teaching would fail to prepare the students for competitive government examinations. They perceived that people have negative attitudes towards this innovation and the social pressure was in favour of rejecting the reform. Some teachers also reported that their resources concerning time and teacher training would not be sufficient to prepare them for such a reform. Similarly, Zhiwen & McGrath's study (2011) showed how much the success of an innovation depended on teachers. The study investigated the teachers' beliefs about the information and communications technology (ICT) related teacher development in the context of a national reform of 'College English Teaching' in China. The study examined teachers' attitudes towards the reform that favoured the integration of ICT in classroom teaching and self-access learning. The L2 teachers were expected to modify their classroom practices to adapt to the requirements of the reform. Although originally the majority of the teachers expressed positive attitudes towards ICT use in English teaching and the national reform, their perception of insufficient support and training reversed their belief in the success in the reform. The research results revealed a change in the teachers' attitudes towards the ICT use in English teaching and the national reform because they believed to have limited ICT skills.

The studies that investigated the nature of L2 teacher beliefs

Many L2 belief research studies that attempted to understand the types of beliefs L2 teachers hold about language learning have used [START_REF] Horwitz | The beliefs about language learning of beginning university foreign language students[END_REF][START_REF] Horwitz | Cultural and situational influences on foreign language learners' beliefs about language learning: a review of BALLI studies[END_REF] Beliefs about Language Learning Inventory (BALLI) (e.g. [START_REF] Kern | Students' and teachers' beliefs about language learning[END_REF][START_REF] Mattheoudakis | Tracking changes in pre-service EFL teacher beliefs in Greece: A longitudinal study[END_REF]Peacock, 2001a;Tercanoglu, 2005). The majority of these studies investigated pre-service L2 teacher beliefs. Many of these L2 teacher belief studies sought to understand what types of beliefs pre-service L2 teachers hold, whether these beliefs are functional or correspond to the recent views about language learning/teaching and whether teacher education programs have any influence on these beliefs (e.g. [START_REF] Altan | Pre-service EFL teachers' beliefs about foreign language learning[END_REF][START_REF] Borg | The impact of in-service teacher education on language teachers' beliefs[END_REF][START_REF] Mattheoudakis | Tracking changes in pre-service EFL teacher beliefs in Greece: A longitudinal study[END_REF]Peacock, 2001a). Peacock's (2001a) longitudinal study sought to view if pre-service L2 teachers' beliefs about L2 learning would change over their 3-year teacher education program. The study based its assumption on the idea that teachers' initial 'mistaken ideas' could change through the course of their teacher education programmes as they studied TESL methodology. Peacock (2001a) proposed that it is important to work on mistaken trainee beliefs from the very beginning because they could influence teachers' teaching and their future students' language learning irrevocably. He collected first-year trainee beliefs about language learning by using Horwitz's Beliefs About Language Learning Inventory (BALLI). This longitudinal study provided some evidence of stability of beliefs. In this study, Peacock (2001a) discovered that the trainees had three key beliefs about language learning that differed from experienced ESL teachers' beliefs and these beliefs changed very little over their three years training. He observed that, during their third year there were still too many trainees that still believed that learning a second language means learning a great deal of vocabulary and grammar rules, and that people who speak more than one language well are very intelligent. In the same vein, Mattheoudakis' (2007) longitudinal study investigated pre-service Greek EFL teachers beliefs about learning and teaching. The study sought to investigate the influence of the 3-year teacher education program and the teaching practice on the student teachers' beliefs. The results suggested that there is a slow but steady development in the student teachers' beliefs during their education. However, the results indicated low impact of the teaching practice on the student teachers' beliefs. Tercanlioglu's study (2005) attempted to understand what beliefs pre-service teachers had about L2 teaching and whether these beliefs were related to one another. She used Horwitz's Beliefs about Language Learning Inventory (BALLI) to collect data. She analyzed the data obtained by using quantitative analysis procedures: descriptive statistics such as frequencies, means, and standard deviations, Pearson correlations analysis, and ANOVA.

Numerous studies conducted in diverse teacher education programs obtained different results concerning the types of beliefs the L2 teachers had. This drew scholars' attention to the role played by contextual factors and prior experiences.

The studies that investigated discrepancies between teachers and learners' L2 beliefs

L2 literature provides us with numerous, experiential and empirical evidence on the existence of discrepancies between learner and teacher beliefs (See Gabillon, 2012 for an overview). The studies that have searched discrepancies between teacher and learner beliefs took place in various teaching contexts and focused on diverse teaching/learning issues. Numerous studies have looked into discordances between learner and teacher perspectives (e.g. [START_REF] Bloom | Tension in a non-traditional Spanish classroom[END_REF]Canagarajah, 1993;[START_REF] Hawkey | Teacher and learner perceptions of language learning activity[END_REF][START_REF] Kumaravadivelu | Language-learning tasks: teacher intention and learner interpretation[END_REF]McCagar, 1993;Mantle-Bromley, 1995;[START_REF] Peacock | The links between learner beliefs, teacher beliefs, and EFL proficiency[END_REF][START_REF] Peacock | Match or mismatch? Learning styles and teaching styles in[END_REF][START_REF] Ruesch | Student and teacher perceptions of motivational strategies in the foreign language classroom[END_REF]. Some scholars attributed discrepancies between learning and teaching perspectives primarily to cultural differences and prior teaching/learning experiences (e.g. Canagarajah, 1993;[START_REF] Kumaravadivelu | Language-learning tasks: teacher intention and learner interpretation[END_REF]. For instance, Canagarajahs (1993) research, which investigated learner resistance, clearly demonstrated that language learners could be unsatisfied with the teaching methods used in their language classroom and might react to it by showing resistance to participate in the language activities. Canagarajah noted that the students often disregarded learner-centered and activity-oriented classes but attended classes that dealt with the grammar points overtly. He also explained that the students were reluctant to participate in the role-play or other interactive activities. He explained that the learners showed resistance to engaging in learner-centered learning activities and tried to draw classroom interaction towards a teachercentered form. Bloom's teacher-research project (2007) demonstrated similar results as Canagarajah's study. The study investigated thirteen adult language learners' reactions towards non-traditional language classroom. Her research findings suggested that the students preferred a more teacher-centered approach and the conflict between teacher and learner expectations created tensions in the classroom. She stated that these tensions developed because the course did not meet the learners' expectations. Some studies sought to discover discordances between learner and teacher perspectives concerning innovation or learner-centred language learning practices (e.g. [START_REF] Bloom | Tension in a non-traditional Spanish classroom[END_REF][START_REF] Hawkey | Teacher and learner perceptions of language learning activity[END_REF][START_REF] Peacock | The links between learner beliefs, teacher beliefs, and EFL proficiency[END_REF][START_REF] Peacock | Match or mismatch? Learning styles and teaching styles in[END_REF]. [START_REF] Hawkey | Teacher and learner perceptions of language learning activity[END_REF] investigated a group of English language teachers' and learners' perceptions of communicative language learning/teaching in their classes. Although the data indicated that both the teachers and the learners had an overall agreement on merits of communicative teaching and learning, the findings of the study suggested notable differences between learner and teacher perspectives on the importance of grammar and pair work in their classes. Some other studies looked into discrepancies between L2 learner and L2 teacher beliefs by focusing on some common L2 issues such as teacher and learner beliefs about oral language instruction (e.g. [START_REF] Cohen | Oral language instruction: Teacher and learner beliefs and the reality in EFL classes at a Colombian university[END_REF], teacher and student role expectations (e.g. McCargar 1993), error correction, grammar teaching (e.g. Schulz 2001), use of L1 in L2 classrooms (e.g. [START_REF] Levine | Student and instructor beliefs and attitudes about target language use, first Language use, and anxiety: Report of a questionnaire study[END_REF]) and so forth. A number of research studies have shown that discrepancies between teacher and learner perspectives have negative effects on learners such as learner resistance [START_REF] Kumaravadivelu | Language-learning tasks: teacher intention and learner interpretation[END_REF][START_REF] Mccargar | Teacher and student role expectations: Cross-cultural differences and implications[END_REF], frustration [START_REF] Horwitz | Cultural and situational influences on foreign language learners' beliefs about language learning: a review of BALLI studies[END_REF], unwillingness to participate, and dissatisfaction [START_REF] Bloom | Tension in a non-traditional Spanish classroom[END_REF]Canagarajah, 1993;[START_REF] Hawkey | Teacher and learner perceptions of language learning activity[END_REF]Mantle-Bromley 1995;[START_REF] Peacock | The links between learner beliefs, teacher beliefs, and EFL proficiency[END_REF][START_REF] Peacock | Match or mismatch? Learning styles and teaching styles in[END_REF]. Thus, results obtained from such studies have obliged the scholars in the field to seek ways to bridge the gap between the teacher and learner perspectives.

Conclusion

Research conducted in L2 teacher beliefs has provided us with invaluable insights on L2 teacher beliefs and the important role beliefs play in teachers' classroom practices. However, so far only very few of these studies have looked into relationships between L2 teachers' vs. L2 learners' beliefs and their consequent influence on learning. Although there have been a number of studies that focused on discrepancies between teacher and learner beliefs only small number of these studies investigated how such discrepancies might affect learners' learning. I believe that more research is needed to unravel the complex interactions between L2 teacher and L2 learner beliefs and the reflection of these beliefs on teachers' classroom practices, and finally their possible effects on learning. In order to be able to have better insights about interactions between L2 teacher and L2 learner beliefs we need to try to find answers to the following queries: How do L2 teachers' beliefs influence their students' beliefs? How do L2 students' beliefs and expectations influence L2 teachers' beliefs and their subsequent classroom practices? How do L2 teachers' beliefs influence their classroom practices? How do these practices affect learning?

  pedagogical knowledge; Golombek (1998) personal practical knowledge, image; Johnson (1992b) theoretical beliefs; Johnson (1994) Images; Meijer et al. (1999) practical knowledge; Richards (1996) maxims; Richards et al. (1992) culture of teaching; Richards et al. (1998) pedagogical reasoning; Sendan & Roberts (1998) personal theories; Spada (1992) specific pedagogical knowledge; Woods (1996) BAK (i.e. B standing for beliefs, A for assumptions, and K for pedagogical knowledge).

  ; Phipps& Borg 2009; Underwood 2012 etc. ) b) teacher cognitions (e.g. Baker 2013; Borg 2006; Brown 2007; Ellis, E. M. 2006; Feryok 2010; Lantolf & Johnson 2007; Saito & Van Poeteren 2012 etc.) c) teacher perceptions (e.g. Brown 2009; Chacón 2005; Dippold 2009; Griffiths 2007; Llurda 2005; Mackey et al. 2007 etc.) d) pedagogical beliefs (e.g.Borg 2011a[START_REF] Borg | Teachers' Beliefs about Learner Autonomy[END_REF][START_REF] Chacón | Teachers' perceived efficacy among English as a foreign language teachers in middle schools in Venezuela[END_REF][START_REF] Gatbonton | Looking beyond teachers' classroom behaviour: Novice and experienced ESL teachers' pedagogical knowledge[END_REF] Johnson 2006 etc.) e) teacher thinking (e.g.[START_REF] Sercu | Foreign language teachers and intercultural communication: an international investigation[END_REF] Johnson 2009 etc.)