Bilateral investment treaties and foreign direct investment: Evidence from emerging market firms

Shi Li and Long Zhao

Research in International Business and Finance, 2021, vol. 58, issue C

Abstract: Bilateral investment treaties (BITs) help developing countries attract foreign direct investment (FDI) from developed countries. However, whether BITs matter for emerging market firms’ (EMFs) FDI is unclear. This paper investigates how BITs affect EMFs’ FDI locations using conditional logit models with firm-level panel data from 2003 to 2015. The results show that BITs can help host countries attract FDI from emerging market countries. BITs work alongside good institutions to increase the attractiveness of FDI, irrespective of a host country being developed or not.

Keywords: Foreign direct investment; Emerging market firms; Bilateral investment treaties (search for similar items in EconPapers)
JEL-codes: C25 F13 F23 (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:riibaf:v:58:y:2021:i:c:s027553192100101x

DOI: 10.1016/j.ribaf.2021.101480

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