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What states want: Estimating ideal points from international investment treaty content

Author

Listed:
  • Florencia Montal

    (28256Universidad Torcuato Di Tella)

  • Carly Potz-Nielsen

    (5635University of Minnesota)

  • Jane Lawrence Sumner

    (5635University of Minnesota)

Abstract

When negotiating investment treaties, states balance two goals: providing strong protections for investors (investor protection), which is thought to attract foreign direct investment, and maintaining the ability to regulate their economies (regulatory autonomy). In this article we argue that treaty content can tell us about the latent preferences that states have over the level of investor protection enshrined in BITs. We use an item response theory (IRT) model and a dataset of 1,144 treaties to estimate latent preferences on this scale for signatory countries. Our measure is of use to scholars interested in studying bilateral investment treaties, international law, and foreign direct investment, and our model is of use to anyone aiming to estimate latent preferences from jointly produced manifestations.

Suggested Citation

  • Florencia Montal & Carly Potz-Nielsen & Jane Lawrence Sumner, 2020. "What states want: Estimating ideal points from international investment treaty content," Journal of Peace Research, Peace Research Institute Oslo, vol. 57(6), pages 679-691, November.
    • Handle: RePEc:sae:joupea:v:57:y:2020:i:6:p:679-691
    DOI: 10.1177/0022343320959130
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    References listed on IDEAS

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    Cited by:

    1. Miriam Barnum & James Lo, 2020. "Is the NPT unraveling? Evidence from text analysis of review conference statements," Journal of Peace Research, Peace Research Institute Oslo, vol. 57(6), pages 740-751, November.
    2. Christopher J Fariss & Michael R Kenwick & Kevin Reuning, 2020. "Estimating one-sided-killings from a robust measurement model of human rights," Journal of Peace Research, Peace Research Institute Oslo, vol. 57(6), pages 801-814, November.
    3. Christopher J Fariss & James Lo, 2020. "Innovations in concepts and measurement for the study of peace and conflict," Journal of Peace Research, Peace Research Institute Oslo, vol. 57(6), pages 669-678, November.
    4. Kudła, Janusz & Kopczewska, Katarzyna & Stachowiak-Kudła, Monika, 2023. "Trade, investment and size inequalities between countries and the asymmetry in double taxation agreements," Economic Modelling, Elsevier, vol. 122(C).

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