Bilateral investment treaties and portfolio investment

Stefan Eichler and Jannik A. Nauerth

We analyze the effect of bilateral investment treaties (BITs) on bilateral foreign portfolio investment in equity and debt securities. We find that expropriation risk and the level of a BIT’s investor protection are complementary. Applying a Poisson Pseudo-Maximum-Likelihood model to a panel of 60 home and 39 host countries from 2002 to 2017, we find that host countries receive 40% more bilateral equity investment when they protect foreign investors with a BIT. This effect almost doubles when investment protection of BITs is strong, and the political risk of the host country is high.

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Year of publication:	January 2024
Authors:	Eichler, Stefan ; Nauerth, Jannik A.
Publisher:	[Dresden] : Faculty of Business and Economics, Technische Universität Dresden
Subject:	Bilateral investment treaties \| Bilateral portfolio investment \| Political risk \| Investor protection \| Emerging markets \| Internationales Investitionsrecht \| International investment law \| Portfolio-Investition \| Foreign portfolio investment \| Auslandsinvestition \| Foreign investment \| Welt \| World \| Portfolio-Management \| Portfolio selection \| Schwellenländer \| Emerging economies \| Internationales Abkommen \| International agreement \| Entwicklungsländer \| Developing countries \| Investitionspolitik \| Investment policy

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Extent:	1 Online-Ressource (circa 55 Seiten) Illustrationen
Series:	CEPIE working paper. - Dresden : CPIE, ISSN 2510-1196, ZDB-ID 2870036-3. - Vol. no. 24, 01
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Graue Literatur ; Non-commercial literature ; Arbeitspapier ; Working Paper
Language:	English
Notes:	In: http://nbn-resolving.de/urn:nbn:de:bsz:14-qucosa-209808
Other identifiers:	hdl:10419/283594 [Handle]
Classification:	F32 - Current Account Adjustment; Short-Term Capital Movements ; G15 - International Financial Markets ; K33 - International Law
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10014471151