Relationship between FDI inflows and Bilateral Investment Treaties / International Investment Treaties in developing economies: An Empirical Analysis

Bilateral Investment Treaties (BITs) / International Investment Agreements (IIAs) are signed between two countries under which a country binds itself to offer treaty-based protection to investments and investors of another country. This paper would see if there is a positive correlation between signing BITs/IIAs and foreign investment inflows in developing countries. It would be seen whether it is prudent to sign BITs/IIAs given the restriction on policy space to host nations as BITs/IIAs are structured purely for foreign investors, granting them extensive rights without recognizing the right of sovereign states to regulate in the national interest.