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Beyond FDI: The Influence of Bilateral Investment Treaties on Debt

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  • Mina, Wasseem
Abstract
This paper examines theoretically and empirically the role of political risk guarantees, which bilateral investment treaties serve, in debt accumulation in low and middle income countries. The paper empirically finds that signed bilateral investment treaties with OECD countries have a positive influence on total and guaranteed debt accumulation, under system GMM and OLS estimation methodologies. Results suggest that the role of bilateral investment treaties extends beyond attracting FDI to international lending.

Suggested Citation

  • Mina, Wasseem, 2012. "Beyond FDI: The Influence of Bilateral Investment Treaties on Debt," MPRA Paper 51920, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:51920
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    More about this item

    Keywords

    Debt; debt guarantees; political risk; default risk; bilateral investment treaties;
    All these keywords.

    JEL classification:

    • F34 - International Economics - - International Finance - - - International Lending and Debt Problems
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • K33 - Law and Economics - - Other Substantive Areas of Law - - - International Law

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