Economic Interest versus Social Conscience Signing Bilateral Investment Treaties – Does Human Rights Matter?
Both theoretical and empirical literatures have identified several channels through which bilateral investment treaties encourage FDI in developing economies like providing investment protection guarantees and so on. Economic and political interests are said to be the driving forces behind signing the investment treaties. However, there is virtually no systematic evidence on whether countries consider human rights performance of the host country while signing bilateral investment treaties. We make an attempt to examine this question by considering 87 developing countries over a period 1980-2006. Different estimation techniques like: negative binomial and poisson models are used. The results demonstrate that economic interests drive bilateral investment treaties to human rights performance. Economic interests measured by economic development, long-term investments, return on investments and macroeconomic risk are significant while human rights performance namely, political terror scale and physical integrity rights remain consistently insignificant. The results are robust to the use of alternative estimation techniques and sensitivity analysis. These results highlight that economic interests preside over social conscience while countries signing investment treaties.
|Date of creation:||25 Dec 2008|
|Contact details of provider:|| Postal: Ludwigstraße 33, D-80539 Munich, Germany|
Web page: https://mpra.ub.uni-muenchen.de
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.:
- Eric Neumayer, 2006.
"Do international human rights treaties improve respect for human rights?,"
Conferences on New Political Economy,in: Max Albert & Stefan Voigt & Dieter Schmidtchen (ed.), Conferences on New Political Economy, edition 1, volume 23, pages 69-104(36
Mohr Siebeck, Tübingen.
- Eric Neumayer, 2005. "Do International Human Rights Treaties Improve Respect for Human Rights?," Journal of Conflict Resolution, Peace Science Society (International), vol. 49(6), pages 925-953, December.
- Eric Neumayer, 2004. "Do international human rights treaties improve respect for human rights?," Law and Economics 0411003, EconWPA, revised 06 Jun 2005.
- Deger, Saadet & Sen, Somnath, 1983. "Military expenditure, spin-off and economic development," Journal of Development Economics, Elsevier, vol. 13(1-2), pages 67-83.
- Schneider, Friedrich & Frey, Bruno S., 1985. "Economic and political determinants of foreign direct investment," World Development, Elsevier, vol. 13(2), pages 161-175, February.
- Grossman, Herschel I & Kim, Minseong, 1996. "Predation and Accumulation," Journal of Economic Growth, Springer, vol. 1(3), pages 333-350, September.
- Herschel I. Grossman & Minseong Kim, 1995. "Predation and Accumulation," NBER Working Papers 5357, National Bureau of Economic Research, Inc.
- Dunning, John H, 1973. "The Determinants of International Production," Oxford Economic Papers, Oxford University Press, vol. 25(3), pages 289-336, November. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:15431. 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: (Joachim Winter)
If references are entirely missing, you can add them using this form.