The impact of unilateral BIT terminations on FDI : quasi-experimental evidence from India

Hartmann, Simon (avtor), Spruk, Rok (avtor)

This study identifies the impact of Bilateral Investment Treaties (BITs) on foreign direct investments (FDI) by taking advantage of the random timing of 44 unilateral BIT terminations in India between 2013 and 2019. Using quarterly bilateral data of 138 foreign investors’ home countries (FIHCs), our difference-in-differences (DD) estimates uncover a significant reduction in FDI inflows to India in response to BIT terminations by more than 30 percent compared to countries without terminations. We identify the sudden break with investor protection for new investments as the major transmission channel. Further investigations suggest that investors do not necessarily abandon India in response to BIT terminations but apparently reroute FDI via FIHCs with BITs. Evidence from firm-level data reveals that investors revoke or reroute mainly deals (e.g. mergers and acquisitions) rather than own new projects. Moreover, similarity of some legal institutions with India offsets the negative effect of BIT terminations.

• Jezik: Angleški jezik
• Ključne besede: entrepreneurship, direct investments, BIT terminations, quasi-experimental, difference-in-differences, heterogeneous timing, bilateral FDI, India, firm-level
• Vrsta gradiva: Članek v reviji
• Tipologija: 1.01 - Izvirni znanstveni članek
• Organizacija: EF - Ekonomska fakulteta
• Status publikacije: V tisku
• Različica publikacije: Objavljena publikacija
• Datum objave: 17.06.2022
• Leto izida: 2022
• PID: 20.500.12556/RUL-138371
• UDK: 658
• ISSN pri članku: 1559-7431
• DOI: 10.1007/s11558-022-09471-3
• COBISS.SI-ID: 112109315
• Datum objave v RUL: 18.07.2022

Gradivo je del revije

• Naslov: The review of international organizations
• Založnik: Springer
• ISSN: 1559-7431
• COBISS.SI-ID: 518512409

Licence

• Licenca: CC BY 4.0, Creative Commons Priznanje avtorstva 4.0 Mednarodna
• Povezava: http://creativecommons.org/licenses/by/4.0/deed.sl
• Opis: To je standardna licenca Creative Commons, ki daje uporabnikom največ možnosti za nadaljnjo uporabo dela, pri čemer morajo navesti avtorja.
• Začetek licenciranja: 17.06.2022

Sekundarni jezik

• Jezik: Slovenski jezik
• Ključne besede: podjetništvo, Indija, direktne investicije