An investigation of variation in bilateral investment treaties: exploring every BIT

To date, countries have signed nearly 3000 bilateral investment treaties (BITs). The widespread use of BITs raises an important question: do BITs increase foreign direct investment to developing countries? The results of empirical studies on this question are inconsistent, possibly because BIT research does not account for treaty variation. This article advances the study of BITs by providing a systematic analysis of various provisions contained in BITs, produces a measure that accounts for the strength of foreign investor protections provided in each treaty, and adds to the literature's theoretical understanding of how BITs influence investment flows to the developing world.