An Economic Analysis of Bilateral Investment Treaties

Cover......Page 1
Ökonomische Analyse des Rechts......Page 3
An Economic Analysis
of Bilateral Investment Treaties......Page 4
ISBN 9783834927569......Page 5
Foreword......Page 6
Acknowledgements......Page 8
Summary Contents......Page 10
Detailed Contents......Page 12
List of Figures......Page 20
List of Abbreviations......Page 22
List of Variables......Page 24
1 Introduction......Page 26
1.1 International Law and Economics......Page 27
1.2 Structure......Page 29
2.1 Trends and Figures......Page 31
2.2 Multinational Enterprises and FDI......Page 33
2.3 FDI and Development......Page 37
3.1.1 Time Inconsistency......Page 42
3.2 The Economics of FDI Protection......Page 47
3.2.1 Static Devices......Page 48
3.2.2 Dynamic Devices......Page 58
3.3 Legal FDI Protection......Page 65
3.3.2 Customary International Law......Page 66
3.3.3 Multilateral Treaties......Page 68
3.3.5 Bilateral Investment Treaties......Page 70
4.1 The (Perceived) Weakness of International Law......Page 92
4.2.1 Empirical Studies on the Effect of BITs on FDI......Page 94
4.2.2 Discussion......Page 97
4.3 Law and Economics of International Law......Page 98
4.3.2 Rational Choice Approach......Page 99
4.3.3 Methodological Individualism......Page 100
4.3.4 The Three R's: Reputation, Reciprocity and Retaliation......Page 101
4.4.1 The Costs of BITs......Page 103
4.4.2 Commitment and Signalling......Page 109
4.4.3 Commitment......Page 110
4.4.4 Signalling......Page 127
4.4.5 Beyond Commitment and Signalling......Page 142
4.5 Empirical Studies and the Functioning of BITs......Page 145
4.6 Discussion and Conclusions......Page 146
5.1 Efficiency and BITs......Page 149
5.2.1 BITs and the Prisoner’s Dilemma......Page 152
5.2.2 The Economics of Institutional Competition......Page 154
5.2.3 Discussion......Page 160
5.3 BITs in the Context of Institutional Competition......Page 161
5.3.1 BITs and Self-Interested Governments......Page 162
5.3.2 BITs and the Prisoner's Dilemma Revisited......Page 167
5.4.1 Non-Discrimination......Page 170
5.4.2 Fair and Equitable Treatment (FET)......Page 171
5.4.3 Indirect Expropriation......Page 172
5.4.4 Evidence......Page 173
5.5 Discussion and Conclusions......Page 177
6.1.1 Some Theory......Page 180
6.1.2 Empirical Literature......Page 183
6.2.1 Fixed-Effects Model......Page 185
6.2.2 Variables......Page 187
6.2.3 Summary Statistics 6.2.4 Regulatory Quality and the Rule of Law......Page 191
6.2.5 Corruption......Page 197
6.3 Caveats......Page 198
6.3.2 Perception Based Indicators......Page 199
6.4 Discussion and Conclusions......Page 200
7.1 Legal Background......Page 202
In conclusion,......Page 205
7.2.1 International Law......Page 206
7.2.2 International Investment Law......Page 208
7.3 The Case for Confidentiality......Page 209
7.3.1 Conventional Arguments for Confidentiality......Page 210
7.3.2 Structural Arguments for Confidentiality......Page 211
7.4 Discussion and Conclusions......Page 221
8.1 Summary......Page 224
8.2 Outlook......Page 228
Appendix A......Page 229
Appendix B......Page 232
Appendix C......Page 236
Appendix D......Page 241
Bibliography......Page 246