There was plenty
of support in the data for traditional economic explanations+ Some of the most
important drivers of the spread of BITs are likely factors that drive investment
decisions more generally+ The pattern of BITs shows that home governments want
to secure investments in developing markets that are large, somewhat open, and
with high quality labor+ On the other hand, BITs are most valuable where political
risk is endemic+ China, which has concluded a large number of BITs with both
rich and poor partners, would be the quintessential BIT partner, according to our
model+