Political Risk Guarantees and Capital Flows: The Role of Bilateral Investment Treaties

Wasseem Mina ()

MPRA Paper from University Library of Munich, Germany

Abstract: This paper examines the influence of political risk guarantees of bilateral investment treaties on debt and equity flows using panel data on middle income countries for the period 1984-2011. Adopting system GMM methodology, the paper empirically finds that ratified bilateral investment treaties with OECD countries have a combined positive influence on non-guaranteed debt flows and a direct positive influence on portfolio equity flows. The results highlight the importance of considering political risk guarantees in financial integration, regulation of financial markets and institutions, and capital liberalization.

Keywords: Political risk guarantees; bilateral investment treaties; capital flows; debt flows; equity flows (search for similar items in EconPapers)
JEL-codes: F21 F34 G15 G18 K33 (search for similar items in EconPapers)
Date: 2013-08-30
New Economics Papers: this item is included in nep-law and nep-pol
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/51811/1/MPRA_paper_51811.pdf original version (application/pdf)

Related works:
Journal Article: Political risk guarantees and capital flows: The role of bilateral investment treaties (2015)
Working Paper: Political risk guarantees and capital flows: The role of bilateral investment treaties (2015)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:51811

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().