Political risk guarantees and capital flows: The role of bilateral investment treaties

Wasseem Mina ()

No 2015-24, Economics Discussion Papers from Kiel Institute for the World Economy

Abstract: This paper examines the influence of political risk guarantees of bilateral investment treaties on debt and equity flows using panel data on middle income countries for the period 1984-2011. Adopting system GMM methodology, the paper empirically finds that ratified bilateral investment treaties with OECD countries have a combined positive influence on non-guaranteed debt flows and a direct positive influence on portfolio equity flows. The results highlight the importance of considering political risk guarantees in financial integration, regulation of financial markets and institutions, and capital liberalization.

Keywords: political risk guarantees; bilateral investment treaties; capital flows; debt flows; equity flows (search for similar items in EconPapers)
JEL-codes: F21 F34 G15 G18 K33 (search for similar items in EconPapers)
Date: 2015
New Economics Papers: this item is included in nep-ifn and nep-pol
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Citations: View citations in EconPapers (2)

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https://www.econstor.eu/bitstream/10419/109216/1/822203782.pdf (application/pdf)

Related works:
Journal Article: Political risk guarantees and capital flows: The role of bilateral investment treaties (2015)
Working Paper: Political Risk Guarantees and Capital Flows: The Role of Bilateral Investment Treaties (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:ifwedp:201524

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