Investment law leads to more investment: a faulty premise?

Research output: Contribution to specialist publicationArticle


If a government ratifies investment treaties and provides foreigners with access to investor-state arbitration, they will receive additional foreign investment. This has been the premise of investment law for over 50 years. Is it true? Two decades of studies testing this premise have been inconclusive (as Bonnitcha, Poulsen, and Waibel summarize). Since statistics on foreign investment are notoriously unreliable, they are unlikely to provide a clear answer anytime soon.

We can, however, answer a slightly different question: when officials drafted investment treaties and arbitration, did they expect them to facilitate more investment? The answer that emerges from internal discussions among officials in the UK and the US is clear: no.
Original languageEnglish
Specialist publicationOxford University Press Blog
Publication statusPublished - 27 May 2018


Dive into the research topics of 'Investment law leads to more investment: a faulty premise?'. Together they form a unique fingerprint.

Cite this