Scandinavian Working Papers in Business Administration
Discussion Papers,
Norwegian School of Economics, Department of Business and Management Science
No 2020/9: Investor-State Dispute Settlement and Multinational Firm Behavior
Guttorm Schjelderup () and Frank Stähler ()
Additional contact information
Guttorm Schjelderup: Dept. of Business and Management Science, Norwegian School of Economics, Postal: NHH , Department of Business and Management Science, Helleveien 30, N-5045 Bergen, Norway
Frank Stähler: School of Business and Economics, University of Tübingen, Postal: University of Tübingen , School of Business and Economics, Nauklerstr. 47, D-72074 Tübingen, Germany
Abstract: This paper shows that Investor-State Dispute Settlements (ISDS) makes multinational firms more aggressive by increasing cost-reducing investments with the aim to enlarge the potential compensation an ISDS provision may offer. While a larger investment reduces the market distortion, it will also make potential compensations larger. Consequently, potential compensations to a foreign investor do not imply a zero-sum game. ISDS may decrease domestic welfare, in particular if the investment leads to the establishment of an export platform, and we find that even global welfare may decline.
Keywords: Investor-State Dispute Settlement; Multinational Enterprises; Foreign Direct Investment; TTIP; TPP
23 pages, August 28, 2020
Full text files
2675550Full text
- Norwegian School of Economics, Department of Business and Management Science
- Ordering Working Papers
- Home page for this series
Questions (including download problems) about the papers in this series should be directed to Stein Fossen ()
Report other problems with accessing this service to Sune Karlsson ().
RePEc:hhs:nhhfms:2020_009This page generated on 2024-11-12 04:36:06.