Legal Analysis on the Effectiveness of China’s BITs in Attracting FDI

by Khasan Sayfutdinov


Over the past several decades there has been a significant global expansion of bilateral investment treaties (BITs) which aim to improve protection of foreign investors’ rights and induce foreign direct investment (FDI). The assumption is that countries with BITs should have high levels of FDI, however, empirical econometric studies conducted over the last fifteen years have produced mixed results. This diversity and contradictions found within previous research motivated this dissertation. The main focus of this study is to assess two important signalling and commitment effects in BITs by linking them to the content of treaties. The proposed FDI attractiveness assessment framework is constructed by combining the signalling and commitment effects with the primary functions of BITs, namely investment protection and promotion.