Democracies cooperate more: even where it threatens to bite?. Issue 11 (23rd July 2016)

• Record Type: Journal Article
• Authors: Hühne, Philipp; Meyer, Birgit; Nunnenkamp, Peter; Roy, Martin
• Is Part Of: Applied economics letters. Volume 23:Issue 11(2016)
• Page Start: 812
• Page End: 815
• Publication Date: 2016-07-23
• Subjects: Preferential trade agreements (PTA) -- investor-state dispute settlement -- national treatment -- democracy; F13 -- F42; Economics -- Periodicals; Economics, Mathematical -- Periodicals; 330
• DOI: 10.1080/13504851.2015.1111979
• Languages: English
• ISSNs: 1350-4851

Abstract

ABSTRACT: Estimating two-step selection models, we find that more democratic governments are more likely to conclude preferential trade agreements (PTAs) and to agree to stricter investment provisions related to pre-establishment national treatment and investor–state dispute settlement in PTAs. This is surprising when considering the potentially high costs of litigation.