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BITs and FDI Revisited: A Matching Approach
Department of Political Science & Public Affairs, Seton Hall University, South Orange, NJ, USA
- 1 Department of Political Science & Public Affairs, Seton Hall University, South Orange, NJ, USA
Open Journal of Political Science·Volume 11 (2021)·Pages 347–356·Published 7 February 2021·DOI10.4236/ojps.2021.112023
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Abstract
Bilateral Investment Treaties (BITs) are legal agreements between two governments with the goal of protecting and attracting FDI. However, existing research on whether BITs fulfill their intended purpose remains mixed. I argue that the empirical analysis of BITs must statistically account for the selection into BIT signing to identify the effects of BITs on FDI. Using a matching approach, I find that BITs do attract FDI.
KeywordsBilateral Investment TreatiesForeign Direct InvestmentCoarsened Exact Matching
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