BITs, Colony Ties, and Offshore Centers: The Case of United Kingdom Outward FDI

Autor:	Oleg Gurshev, Sarhad Hamza
Rok vydání:	2021
Předmět:	Core (game theory) Sample composition Factor cost Multinational corporation Economics Market access Foreign direct investment International economics Investment (macroeconomics) General Economics Econometrics and Finance Stock (geology)
Zdroj:	Journal of Economic Integration. 36:203-226
ISSN:	1976-5525 1225-651X
DOI:	10.11130/jei.2021.36.2.203
Popis:	This paper empirically investigates the impact of bilateral investment treaties (BITs) on foreign direct investment (FDI) using data on British multinational firms’ outward FDI in a panel of 140 countries across 2009-2017. We apply the Knowledge-Capital model to demonstrate that BITs act as a market access mechanism to parent country multinational enterprises. Our core result confirms the negative impact of BIT membership on horizontal FDI in the host economy. This result is robust to changes in partner sample composition, hypothetical stock levels, and inclusion of trade policies. Our findings imply that factor cost advantages are unable to compensate for the adverse effect of BIT entry, which raises concerns regarding the potency of BIT-centered development policies.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::548593e7af858a87487d6beecfad8ccf https://doi.org/10.11130/jei.2021.36.2.203 Zobrazit plný text záznamu Plný text ve formátu PDF