• Economics
  • Published 2015

The Regional Impact of Bilateral Investment Treaties on Foreign Direct Investment

@inproceedings{Lejour2015TheRI,
  title={The Regional Impact of Bilateral Investment Treaties on Foreign Direct Investment},
  author={Arjan Lejour and Maria Salfi},
  year={2015}
}
We examine the impact of bilateral investment treaties (BITs) on bilateral FDI stocks using extensive data from 1985 until 2011. We correct for endogeneity using indicators for governance and membership of international organisations. We find that ratified BITs increase on average bilateral FDI stocks by 35% compared to those of country pairs without a treaty. Upper middle income countries seem to benefit the most from ratified treaties whereas high income countries with high governance levels… CONTINUE READING

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