An Economic Analysis of Bilateral Investment Treaties [electronic resource] /
Sasse, Jan Peter.author.
Bilateral Investment Treaties (BITs) are an important instrument for the protection of foreign direct investment (FDI). However, compared to international trade law, international investment law has so far received only little research attention from an economic point of view. By applying a law and economics approach, Jan Peter Sasse provides a systematic analysis of the way BITs function. He explains why BITs are more than just a signal, how they relate to institutional competition as well as to institutional quality and why transparency in international investment arbitration is hard to achieve and may even be detrimental.
Description based upon print version of record.
Foreword; Acknowledgements; Summary Contents; Detailed Contents; List of Figures; List of Abbreviations; List of Variables; 1 Introduction; 1.1 International Law and Economics; 1.2 Structure; 2 Foreign Direct Investment; 2.1 Trends and Figures; 2.2 Multinational Enterprises and FDI; 2.3 FDI and Development; 3 Economic and Legal Protection of FDI; 3.1 Time Inconsistency and Expropriation Risk; 3.1.1 Time Inconsistency; 3.1.2 On the Relevance of Expropriation Risk; 3.2 The Economics of FDI Protection; 3.2.1 Static Devices; 3.2.2 Dynamic Devices; 3.2.3 Discussion; 3.3 Legal FDI Protection
3.3.1 Domestic Regulation3.3.2 Customary International Law; 3.3.3 Multilateral Treaties; 3.3.4 Investor-State Contracts; 3.3.5 Bilateral Investment Treaties; 4 The Economics of BITs; 4.1 The (Perceived) Weakness of International Law; 4.2 The Effect of BITs on FDI; 4.2.1 Empirical Studies on the Effect of BITs on FDI; 4.2.2 Discussion; 4.3 Law and Economics of International Law; 4.3.1 Theories of International Law; 4.3.2 Rational Choice Approach; 4.3.3 Methodological Individualism; 4.3.4 The Three R's: Reputation, Reciprocity and Retaliation; 4.4 The Functioning of BITs
4.4.1 The Costs of BITs4.4.2 Commitment and Signalling; 4.4.3 Commitment; 4.4.4 Signalling; 4.4.5 Beyond Commitment and Signalling; 4.5 Empirical Studies and the Functioning of BITs; 4.6 Discussion and Conclusions; 5 BITs and Institutional Competition; 5.1 Efficiency and BITs; 5.2 Institutional Competition; 5.2.1 BITs and the Prisoner's Dilemma; 5.2.2 The Economics of Institutional Competition; 5.2.3 Discussion; 5.3 BITs in the Context of Institutional Competition; 5.3.1 BITs and Self-Interested Governments; 5.3.2 BITs and the Prisoner's Dilemma Revisited; 5.4 Provisions and Evidence
5.4.1 Non-Discrimination5.4.2 Fair and Equitable Treatment (FET); 5.4.3 Indirect Expropriation; 5.4.4 Evidence; 5.5 Discussion and Conclusions; 6 BITs and Institutional Quality; 6.1 The Effect of BITs on Institutional Quality; 6.1.1 Some Theory; 6.1.2 Empirical Literature; 6.2 Model and Data; 6.2.1 Fixed-Effects Model; 6.2.2 Variables; 6.2.3 Summary Statistics 6.2.4 Regulatory Quality and the Rule of Law; 6.2.5 Corruption; 6.2.6 Outliers, Economic Freedom and OECD BITs; 6.3 Caveats; 6.3.1 Selection and Composition of Variables; 6.3.2 Perception Based Indicators; 6.4 Discussion and Conclusions
7 BITs and Transparency7.1 Legal Background; In conclusion,; 7.2 The Case for Transparency; 7.2.1 International Law; 7.2.2 International Investment Law; 7.3 The Case for Confidentiality; 7.3.1 Conventional Arguments for Confidentiality; 7.3.2 Structural Arguments for Confidentiality; 7.3.3 More Transparency?; 7.4 Discussion and Conclusions; 8 Summary and Outlook; 8.1 Summary; 8.2 Outlook; Appendices; Appendix A; Appendix B; Appendix C; Appendix D; Bibliography
Dissertation--Universität Hamburg, 2010.
Includes bibliographical references.
Bilateral Investment Treaties (BITs) are an important instrument for the protection of foreign direct investment (FDI). However, compared to international trade law, international investment law has so far received only little research attention from an economic point of view. By applying a law and economics approach, Jan Peter Sasse provides a systematic analysis of the way BITs function. He explains why BITs are more than just a signal, how they relate to institutional competition as well as to institutional quality and why transparency in international investment arbitration is hard to achieve and may even be detrimental.
Tax accounting.
Tax laws.
Economics.
Management science.
Business Taxation/Tax Law.
Economics, general.