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 (IfW Kiel)

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
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.economics-ejournal.org/economics/discussionpapers/2015-24
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)
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:zbw:ifwedp:201524

Access Statistics for this paper

More papers in Economics Discussion Papers from Kiel Institute for the World Economy (IfW Kiel) Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().