Discussion Paper

No. 2015-24 | April 02, 2015
Political Risk Guarantees and Capital Flows: The Role of Bilateral Investment Treaties

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.

Data Set

JEL Classification:

F21, F34, G15, G18, K33

Assessment

  • Downloads: 1888

Links

Cite As

Wasseem Mina (2015). Political Risk Guarantees and Capital Flows: The Role of Bilateral Investment Treaties. Economics Discussion Papers, No 2015-24, Kiel Institute for the World Economy. http://www.economics-ejournal.org/economics/discussionpapers/2015-24


Comments and Questions


Anonymous - Anonymous reader
April 16, 2015 - 09:02

Here I attached some comments


Wasseem Mina - Reply to Anonymous Reader Comment
July 02, 2015 - 10:29

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Anonymous - Invited Reader Comment
April 29, 2015 - 09:07

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Wasseem Mina - Reply to Invited Reader Comment
July 02, 2015 - 10:29

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Anonymous - Referee Report 1
May 04, 2015 - 14:53

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Wasseem Mina - Reply to Referee Report 1
July 02, 2015 - 10:31

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Anonymous - Referee Report 2
May 08, 2015 - 10:01

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Wasseem Mina - Reply to Referee Report 2
July 02, 2015 - 10:31

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Anonymous - Referee Report 3
June 15, 2015 - 11:57

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Wasseem Mina - Reply to Referee Report 3
July 02, 2015 - 10:32

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Wasseem Mina - Revised Version
July 02, 2015 - 10:46

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