The Impact of Bilateral Investment Treaties on Foreign Direct Investment
Posted: 6 Apr 2005
Abstract
This paper uses a large panel of OECD data on stocks of outward foreign direct investment (FDI) to evaluate the impact of bilateral investment treaties. For several variants of the knowledge capital model of multinationals, we demonstrate that investment treaties exert a significant positive effect on outward FDI, if they actually are implemented. Moreover, even signing a treaty has a positive, although lower and in most specifications insignificant, effect on FDI.
JEL Classification: C23, F12, F23
Suggested Citation: Suggested Citation
Egger, Peter H. and Pfaffermayr, Michael, The Impact of Bilateral Investment Treaties on Foreign Direct Investment. Available at SSRN: https://ssrn.com/abstract=694283
CESifo (Center for Economic Studies and Ifo Institute for Economic Research)
Poschinger Str. 5
Munich, DE-81679
Germany
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