The impact of BITs on FDI: A survey of the literature

Among all kinds of IIAs, BITs continue to be the most numerous and most important type of investment treaties. Originally, BITs were concluded between developed and developing countries. For developed, capital-exporting countries, BITs have been part of long-lasting efforts to establish international rules facilitating and protecting foreign investments by their nationals and companies. Developing countries have concluded BITs as part of their desire to improve their policy framework in order to attract more FDI and benefit from it. By engaging increasingly in BITs among themselves, developing countries have begun to consider BITs as a device protecting also investment of their own investors.

Related Subject(s): United Nations