Nothing Special   »   [go: up one dir, main page]

  EconPapers    
Economics at your fingertips  
 

The Effect of Bilateral Investment Treaties (BITs) on the extensive and intensive margins of exports

Tingting Xiong

The Quarterly Review of Economics and Finance, 2022, vol. 84, issue C, 68-79

Abstract: This paper investigates the effect of BITs on the extensive and intensive product margins of exports, utilizing ordinary least squares (OLS) and Poisson pseudo-maximum-likelihood (PPML) estimator with fixed effects approaches to estimate the gravity equations. The model in this paper theoretically demonstrates that investment liberalization increases the extensive margin by lowering the variable costs of selling abroad, but decreases the intensive margin by lowering both the fixed investment costs and the variable costs. Using a detailed dataset of 210 countries/regions from 1988 to 2006, this paper provides empirical evidence that BITs promote exports. This paper also empirically supports the theoretical propositions that BITs increase the extensive margin of exports from developed countries while decreasing the intensive margin of exports.

Keywords: Bilateral Investment Treaties (BITs); Extensive margin of trade; Intensive margin of trade; Poisson pseudo-maximum-likelihood (PPML) (search for similar items in EconPapers)
JEL-codes: F12 F14 F21 F23 (search for similar items in EconPapers)
Date: 2022
References: Add references at CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1062976922000114
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:quaeco:v:84:y:2022:i:c:p:68-79

DOI: 10.1016/j.qref.2022.01.003

Access Statistics for this article

The Quarterly Review of Economics and Finance is currently edited by R. J. Arnould and J. E. Finnerty

More articles in The Quarterly Review of Economics and Finance from Elsevier
Bibliographic data for series maintained by Catherine Liu ().

 
Page updated 2024-12-28
Handle: RePEc:eee:quaeco:v:84:y:2022:i:c:p:68-79