Coverage and enforceability of investment rules in PTAs: the role of global value chain trade and regulatory differences

Coverage and enforceability of investment rules in PTAs: the role of global value chain trade and regulatory differences

Download PDF 434 KB

Bruhn, Dominique
Externe Publikationen (2015)

FIW (Working Paper Series 142)

Against the background of a changing landscape of trade and investment governance in the 21st century, characterised by the proliferation of deep preferential trade agreements (PTAs), this paper econometrically tests the importance of global value chain trade and regulatory differences in explaining the likelihood of a country pair to include an (enforceable) investment provision in the PTA. The spatial probit analysis, based on Bayesian Monte Carlo Markov Chain simulation, reveals that higher production network trade and strongly differing legal frameworks are indeed associated with a higher likelihood of including (enforceable) investment provisions. This is true even when controlling for interdependence between countries and conducting a variety of sensitivity checks, underscoring the importance of deep integration in the context of global value chains. However, when excluding EU countries from the sample, investment coverage and enforceability is rather driven by positive spatial interdependence between countries, raising the question whether the focus on global value chain trade and regulatory differences is something characteristic of EU trade policy making.

Weitere Expert*innen zu diesem Thema

Baumann, Max-Otto

Politikwissenschaft 

Berger, Axel

Politikwissenschaft 

Brandi, Clara

Ökonomie und Politikwissenschaft 

Gitt, Florian

Ökonomie 

Goedeking, Nicholas

Vergleichende politische Ökonomie 

Haug, Sebastian

Politikwissenschaft 

Hilbrich, Sören

Ökonomie 

Inacio da Cunha, Marcelo

Wirtschaftswissenschaften, Geographie 

Kachelmann, Matthias

Politikwissenschaft 

Li, Hangwei

Politikwissenschaft 

Morare, Ditebogo Modiegi

Politikwissenschaften 

Novoselova, Anna

Politikwissenschaften 

Olekseyuk, Zoryana

Ökonomie 

Stender, Frederik

Ökonom 

Stewart, Benjamin

Sozialwissenschaft 

Vogel, Tim

Ökonomie 

Wingens, Christopher

Politikwissenschaftler