Working Paper
Democracies Cooperate More – Even Where it Threatens to Bite?
Estimating two-step selection models, we find that more democratic governments are more likely to conclude preferential trade agreements (PTAs) and to agree to stricter investment provisions related to pre-establishment national treatment and investor-state dispute settlement in PTAs. This is surprising when considering the potentially high costs of litigation.
Key Words
- democracy
- investor-state dispute settlement
- national treatment
- preferential trade agreements (PTA)