Let us begin with the project’s null hypothesis: that country characteristics or
commonly experienced shocks explain the pattern of BIT signings+ 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+
Let us begin with the project’s null hypothesis: that country characteristics orcommonly experienced shocks explain the pattern of BIT signings+ There was plentyof support in the data for traditional economic explanations+ Some of the mostimportant drivers of the spread of BITs are likely factors that drive investmentdecisions more generally+ The pattern of BITs shows that home governments wantto secure investments in developing markets that are large, somewhat open, andwith high quality labor+ On the other hand, BITs are most valuable where politicalrisk is endemic+ China, which has concluded a large number of BITs with bothrich and poor partners, would be the quintessential BIT partner, according to ourmodel+
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