On the optimal size of bilateral investment treaty network in foreign direct investment flows
本文实证估计了双边投资条约存量对对外直接投资流量的边际效应，发现其存在递减收益，且递减程度在未签署条约但拥有自身条约网络的国家对中更为显著。
Purpose The aim of this paper first is to go beyond the static effects of bilateral investment treaties (BITs) and empirically estimate the marginal effects of the stock of BITs on foreign direct investment flows. Design/methodology/approach These statistical models use a gravity equation. Findings This paper finds that BITs is subject to diminishing returns measured in terms of FDI flows. Diminishing returns are more pronounced among country-pairs that have not signed BITs but have their own BIT network than among country-pairs with their own BITs. Research limitations/implications The subsidiary finding is that a measure of a country’s BIT network characteristic, capturing conditions favorable for a mix of horizontally and vertically integrated activities, may be the limiting force underlying the diminishing returns of the stock of BITs. Originality/value For a given country’s BIT network, a multinational enterprise finds more value in investing where a bilateral treaty is in place. This suggests either stronger property-rights protection or greater latitude to use the host country as an export platform.