Attracting FDI through BITs and RTAs: Does treaty content matter?

The authors analyze empirically whether the impact of BITs and RTAs on bilateral FDI flows depends on the inclusion of two legal innovations: investor-state dispute settlement (ISDS) and pre-establishment national treatment (NT) provisions. Indeed, they find strong evidence that liberal NT provisions promote FDI. ISDS mechanisms appear to play a minor role. Surprisingly, the impact of similar investment provisions on FDI depends on whether these provisions are contained in RTAs or BITs.