Sustainable Development and International Investment Law: An Harmonious View from Economics
Published in: Roberto Echandi and Pierre Sauvé (Eds.), Prospects in International Investment Law and Policy (Cambridge: Cambridge University Press 2013), pp. 317-339.
14 Pages Posted: 24 Jul 2011 Last revised: 2 Dec 2014
Date Written: July 23, 2011
International Investment Law (IIL), like international trade law, has an economic rationale as its background. Nevertheless, this economic rationale and the empirical insights into assumed causal links play a much smaller role than in trade law. Whereas in trade law economic insights have found entry into law application, this is true to a much smaller extent in IIL. Furthermore, the political economy rationale has been explored in trade law, but not in IIL. This article aims at filling this gap by surveying the economic insights into the link between foreign investment and sustainable development and suggesting adequate interpretative arguments and places (jurisdictional phase v. merits phase) in investment arbitration. Coupling IIL and economic insights might not only help to ground IIL firmly in the goals it pursues, but also change treaty making and treaty interpretation by putting them on an evidence basis.
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