Journal Article

Democracies Cooperate More - Even Where It Threatens to Bite?

Applied Economics Letters, 23(11): 812-815

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.

Authors

Philipp Hühne
Peter Nunnenkamp
Birgit Meyer
Martin Roy