Working Paper

Democracies Cooperate More – Even Where it Threatens to Bite?

Kiel Working Papers, 2004

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.


Philipp Hühne
Birgit Meyer
Peter Nunnenkamp
Martin Roy