The Impact of Unilateral Bilateral Investment Treaties Terminations on FDI: Evidence from a Natural Experiment

2020 ◽  
Author(s):  
Simon Hartmann ◽  
Rok Spruk
Keyword(s):  
Natural Experiment ◽  
Bilateral Investment Treaties ◽  
Investment Treaties ◽  
The Impact

scholarly journals The Impact of Bilateral Investment Treaties on FDI Inflows Into India: Some Empirical Results

2021 ◽  
pp. 001573252110273
Author(s):  
Jaivir Singh ◽  
Vatsala Shreeti ◽  
Parnil Urdhwareshe
Keyword(s):  
International Investment ◽  
Bilateral Investment Treaties ◽  
Fdi Inflows ◽  
International Investment Agreements ◽  
Investment Treaties ◽  
Dispute Settlements ◽  
Generalised Method Of Moments ◽  
The Individual ◽  
State Rights ◽  
The Impact

After a run of adverse investor-state dispute settlements, India has recently denounced all its erstwhile investment treaties. New investment treaties need to be negotiated on the basis of a new Model Treaty that privilege state rights over investor rights. We study the impact of bilateral investment treaties on foreign direct investment (FDI) inflows into India before the denunciation with the intent of inferring the consequences of changing the system. Our work captures the effects of international investment agreements on FDI inflows specifically into India. We construct an empirical model drawing on the Gravity Model, and estimate parameters using generalised method of moments. The results show that while the individual signing of bilateral investment treaties does not influence the inflow of FDI, the effect of the cumulative bilateral investment treaties signed is statistically very significant—suggesting that the spill over effect of signing a series of bilateral investment treaties are important, signalling a regime of overall protection to investors. The importance of institutional variables in influencing FDI tells us that overall participation in a system governed by international investor agreements influenced the inflow of FDI positively and therefore recent policy changes should be viewed with caution. JEL Codes: F21, F23, F550, F63, K33, O19, C22, C29

The Impact of Bilateral Investment Treaties on FDI Dynamics

World Economy ◽  
2007 ◽  
Vol 30 (10) ◽  
pp. 1536-1549 ◽  
Author(s):  
Peter Egger ◽  
Valeria Merlo
Keyword(s):  
Bilateral Investment Treaties ◽  
Investment Treaties ◽  
The Impact

Terra Incognita: What Happens When a Problem of State Succession Occurs during Arbitration Proceedings?

2018 ◽  
Vol 17 (2) ◽  
pp. 350-373
Author(s):  
Patrick Dumberry
Keyword(s):  
Arbitral Tribunal ◽  
Bilateral Investment Treaties ◽  
Home State ◽  
Terra Incognita ◽  
Arbitration Proceeding ◽  
State Succession ◽  
Investment Treaties ◽  
The Impact ◽  
Unique Context

Abstract This article examines the question of State succession to bilateral investment treaties (BITs) in the unique context whereby the events leading to this change in sovereignty happen during an arbitration proceeding. I will assess the impact this will have on the respondent State in the proceedings which may cease to exist (dissolution, unification, and integration) or lose part of its territory (cession, secession). Succession may also affect the home State of the claimant investor and result in that person losing its nationality and acquiring a new one. An arbitral tribunal should continue to have jurisdiction over a dispute whenever a claimant involuntarily changes its nationality in such context. While the same conclusion should apply when changes affect the respondent State, major difficulties will arise if that State ceases to exist and no other State is willing to participate in the proceedings. I will examine the limits of tribunals’ powers in this respect.

Sicherung privater Investitionen – ein geeignetes Instrument der Entwicklungshilfe?

2008 ◽  
Vol 57 (3) ◽  
Author(s):  
Peter Egger ◽  
Andreas Freytag ◽  
Sebastian Voll ◽  
Philipp Harms
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Property Rights ◽  
Host Country ◽  
Emerging Market ◽  
Developed Countries ◽  
Bilateral Investment Treaties ◽  
Investment Treaties ◽  
The Impact

AbstractPeter Egger’s paper provides a synthesis of findings with regard to the impact of bilateral as well as multilateral means of protection of cross-border direct investments in less developed countries and, in turn, on their economic growth. In particular, he focuses on the role of bilateral investment treaties and multilateral agreements such as the GATS in this regard. Previous empirical work identifies a significant positive impact of bilateral investment treaties on FDI. It suggests a similar impact of the GATS on FDI. He argues that these agreements contribute significantly to economic growth in less developed economies and countries in transition by spurring technology transfers through multinational activity of the developed countries in other economiesAndreas Freytag and Sebastian Voll emphasize the important role of adequate institutions both for investment and development. The question is, whether investment guarantees as insurance for political risks in the recipient country support economic development or not. Actually, the German Federal Republic is the leading warrantor for FDI-insurances on the world, but the benefiting countries are not the LDC’s. Using these warranties as an instrument of development policy in the future is content of actual political discussion. They argue that, in case of economies with weak domestic institutions, investment guarantees could provide disincentives for politicians in the target country to establish rule of law and good governance. On the other hand, investment guarantees could foster development by providing additional access to FDI, especially in emerging market economies with sufficient and improving institutional qualityPhilipp Harms points out while foreign direct investment (FDI) flows to developing countries and emerging markets have increased substantially in recent years, many low-income countries are still shunned by multinational firms. One of the key causes for this observation is the poor quality of institutions and an often precarious political environment in these countries. Given the benefits of FDI for host country productivity and income levels, it could thus be argued that protecting the security of property rights is an effective way of enhancing growth and prosperity in poor countries. While he agrees with this point of view, he argues that “traditional” forms of development aid can substantially contribute to an improved investment climate in developing countries. This argument is based on the notion that insecure property rights reflect distributional conflicts in the host country population, and that appropriate development support can shift agents’ distributional interests in favor of foreign firms.

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