Working Paper

Democracies Cooperate More – Even Where it Threatens to Bite?

Authors

  • Philipp Hühne
  • Birgit Meyer
  • Peter Nunnenkamp
  • Martin Roy
Publication Date

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.

Info

JEL Classification
F53

Key Words

  • democracy
  • investor-state dispute settlement
  • national treatment
  • preferential trade agreements (PTA)