Bilateral investment treaties boost foreign investment in emerging markets.
Bilateral investment treaties (BITs) help developing countries attract foreign investment from wealthier nations. A study looked at how BITs affect where companies from emerging markets invest. The study used data from 2003 to 2015 and found that BITs can help countries attract investment from other emerging markets. When combined with good institutions, BITs make a country more appealing for foreign investment, regardless of whether the country is developed or not.