The Impact of Bilateral Investment Treaties on FDI Dynamics

Peter Egger and Valeria Merlo

The World Economy, 2007, vol. 30, issue 10, 1536-1549

Abstract: 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.

Date: 2007
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (62)

Downloads: (external link)
https://doi.org/10.1111/j.1467-9701.2007.01063.x

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:worlde:v:30:y:2007:i:10:p:1536-1549

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0378-5920

Access Statistics for this article

The World Economy is currently edited by David Greenaway

More articles in The World Economy from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().