Schjelderup, Guttorm; Stähler, Frank - In: Review of International Economics 29 (2021) 4, pp. 1013-1024
This paper shows that investor-state dispute settlements (ISDS) make multinational firms more aggressive by increasing cost-reducing investments with the aim to enlarge the potential compensation an ISDS provision may offer. While a larger investment reduces the market distortion, it will also...