The Impact of Bilateral Investment Treaties on FDI Dynamics
Ifo Institute for Economic Research - International Trade and Foreign Direct Investment; Ludwig-Maximilians University of Munich; CESifo (Center for Economic Studies and Ifo Institute for Economic Research
ETH Zurich, Chair of Applied Economics: Innovation and Internationalisation; Ludwig-Maximilians-Universität Munich - Munich Graduate School of Economics (MGSE)
The World Economy, Vol. 30, No. 10, pp. 1536-1549, October 2007
This paper investigates the impact of bilateral investment treaties (BITs) on foreign direct investment (FDI) in transition countries. FDI stocks are characterised by sluggish adjustment and a dynamic pattern. This leads to biased estimates of the contemporaneous impact of BITs on FDI in static models. In our application, the contemporaneous (short-run) impact of BITs amounts to 4.8 per cent and the long-run effect to 8.9 per cent in the preferred model.
Number of Pages in PDF File: 14Accepted Paper Series
Date posted: September 21, 2007
© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.
This page was processed by apollo8 in 3.532 seconds