We argue that membership in specific international organizations (IOs) is an important determinant of foreign direct investment (FDI) inflows. To the extent that membership restricts a country from pursuing policies that are harmful to investors, it can signal reduced political risk. Using data...

This paper analyzes whether nation-state governments can increase their credibility by becoming members of international organizations. It is hypothesized that the degree of delegation to international organizations can improve the credibility of nation-state governments. This hypothesis is...