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EUGENE, Ore. Jan. 21, 2021 Developing economies suffer from a paradox: they don t receive investment flows from developed economies because they lack stability and high-quality financial and lawmaking institutions, but they can t develop those institutions without foreign funds.
A study co-authored by Brandon Julio, a professor in the Department of Finance at the University of Oregon s Lundquist College of Business, found that bilateral investment treaties, commonly known as BITs, can help developing economies overcome this paradox, but only as long as those countries can demonstrate a commitment to property and contract rights.
Julio published the research, A BIT Goes a Long Way: Bilateral Investment Treaties and Cross-border Mergers, in a paper that published online Dec. 11 ahead of print in the