The impact of unilateral BIT terminations on FDI: Quasi-experimental evidence from India

被引：7

作者：

Hartmann, Simon ^{[1
]}

Spruk, Rok ^{[2
]}

机构：

[1] Vienna Univ Econ & Business, Dept Global Business & Trade, Welthandelspl 1, A-1020 Vienna, Austria

[2] Univ Ljubljana, Sch Econ & Business, Kardeljeva Ploscad 17, Ljubljana 1000, Slovenia

来源：

REVIEW OF INTERNATIONAL ORGANIZATIONS | 2023年 / 18卷 / 02期

关键词：

BIT terminations; Quasi-experimental; Difference-in-differences; Heterogeneous timing; Bilateral FDI; India; Firm-level; BILATERAL INVESTMENT TREATIES; FOREIGN DIRECT-INVESTMENT; FINANCIAL DEVELOPMENT; DETERMINANTS; MODELS; FLOWS; PANEL; COMMITMENT; AGREEMENTS; MARKET;

D O I：

10.1007/s11558-022-09471-3

中图分类号：

F [经济];

学科分类号：

02 ;

摘要：

This study identifies the impact of Bilateral Investment Treaties (BITs) on foreign direct investments (FDI) by taking advantage of the random timing of 44 unilateral BIT terminations in India between 2013 and 2019. Using quarterly bilateral data of 138 foreign investors' home countries (FIHCs), our difference-in-differences (DD) estimates uncover a significant reduction in FDI inflows to India in response to BIT terminations by more than 30 percent compared to countries without terminations. We identify the sudden break with investor protection for new investments as the major transmission channel. Further investigations suggest that investors do not necessarily abandon India in response to BIT terminations but apparently reroute FDI via FIHCs with BITs. Evidence from firm-level data reveals that investors revoke or reroute mainly deals (e.g. mergers and acquisitions) rather than own new projects. Moreover, similarity of some legal institutions with India offsets the negative effect of BIT terminations.

引用

页码：259 / 296

页数：38

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