BIT Contracting and FDI Impact in the GCC Countries
The rationale for GCC countries increasingly contracting of BITs is controversial. This paper empirically examines the short term and long term impact BITs contracting on FDI and distinguishes it by the income level of the contracting partner country. The paper uses panel data for the period 1984-2002 and adopts a GMM estimation methodology. The paper finds that while ratified BITs with high income non-OECD countries have a positive impact on FDI, ratified BITs with upper middle income countries have a surprisingly negative impact. These results are robust to changes in model specification and sample period.
|Date of creation:||09 Jan 2008|
|Date of revision:||09 Jan 2008|
|Publication status:||Published by The Economic Research Forum (ERF)|
|Contact details of provider:|| Postal: 21 Al-Sad Al Aaly St. Dokki, Giza|
Web page: http://www.erf.org.eg
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Mina, Wasseem, 2007. "The location determinants of FDI in the GCC countries," Journal of Multinational Financial Management, Elsevier, vol. 17(4), pages 336-348, October.
- Ginsburg, Tom, 2005. "International Substitutes for Domestic Institutions: Bilateral Investment Treaties and Governance," International Review of Law and Economics, Elsevier, vol. 25(1), pages 107-123, March.
- Jennifer Tobin & Susan Rose-Ackerman, 2011. "When BITs have some bite: The political-economic environment for bilateral investment treaties," The Review of International Organizations, Springer, vol. 6(1), pages 1-32, March.
- Manuel Arellano & Stephen Bond, 1991.
"Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations,"
Review of Economic Studies,
Oxford University Press, vol. 58(2), pages 277-297.
- Tom Doan, "undated". "RATS program to replicate Arellano-Bond 1991 dynamic panel," Statistical Software Components RTZ00169, Boston College Department of Economics.
- Wasseem, Mina, 2007. "Are the GCC FDI Location Determinants Favorable?," Economics Discussion Papers 2007-23, Kiel Institute for the World Economy (IfW). Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:erg:wpaper:437. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Namees Nabeel)
If references are entirely missing, you can add them using this form.