Beyond FDI: The Influence of Bilateral Investment Treaties on Debt

37 Pages Posted: 5 Dec 2013

See all articles by Wasseem Mina

Wasseem Mina

UAE University; Economic Research Forum for the Arab Countries

Date Written: October 4, 2012

Abstract

This paper examines theoretically and empirically the role of political risk guarantees, which bilateral investment treaties serve, in debt accumulation in low and middle income countries. The paper empirically finds that signed bilateral investment treaties with OECD countries have a positive influence on total and guaranteed debt accumulation, under system GMM and OLS estimation methodologies. Results suggest that the role of bilateral investment treaties extends beyond attracting FDI to international lending.

Keywords: debt, debt guarantees, political risk, default risk, bilateral investment treaties

JEL Classification: F34, G15, K33

Suggested Citation

Mina, Wasseem, Beyond FDI: The Influence of Bilateral Investment Treaties on Debt (October 4, 2012). Available at SSRN: https://ssrn.com/abstract=2363811 or http://dx.doi.org/10.2139/ssrn.2363811

Wasseem Mina (Contact Author)

UAE University ( email )

College of Business and Economics
P.O.Box 17555
Al Ain, Abu Dhabi 17555
United Arab Emirates

Economic Research Forum for the Arab Countries ( email )

21 Al-Sad Al-Aaly St.
(P.O. Box: 12311)
Dokki, Cairo
Egypt

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