BITs and FDI Revisited: A Matching Approach - Open Journal of Political Science

OJPS > Vol.11 No.2, April 2021

Open Journal of Political Science

Volume 11, Issue 2 (April 2021)

ISSN Print: 2164-0505 ISSN Online: 2164-0513

Google-based Impact Factor: 0.81 Citations

BITs and FDI Revisited: A Matching Approach ()

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Download as PDF (Size: 918KB) PP. 347-356

DOI: 10.4236/ojps.2021.112023 309 Downloads 1,791 Views Citations

Author(s)

Terence K. Teo

Affiliation(s)

Department of Political Science & Public Affairs, Seton Hall University, South Orange, NJ, USA.

ABSTRACT

Bilateral Investment Treaties (BITs) are legal agreements between two governments with the goal of protecting and attracting FDI. However, existing research on whether BITs fulfill their intended purpose remains mixed. I argue that the empirical analysis of BITs must statistically account for the selection into BIT signing to identify the effects of BITs on FDI. Using a matching approach, I find that BITs do attract FDI.

KEYWORDS

Bilateral Investment Treaties, Foreign Direct Investment, Coarsened Exact Matching

Share and Cite:

Teo, T. (2021) BITs and FDI Revisited: A Matching Approach. Open Journal of Political Science, 11, 347-356. doi: 10.4236/ojps.2021.112023.

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