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August 18, 2026
HSE Scholar Presents Research on Postcards in Brazil and South Korea
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The effects of India's bilateral investment treaties termination on foreign direct investment inflows

Economics of Transition and Institutional Change. 2023. Vol. 31. No. 4. P. 1007–1033.
Kotyrlo E., Kalachyhin H.

India initiated the unilateral mass termination of bilateral investment treaties (BIT termination) in 2016. We consider it a natural experiment to clarify the issue of whether BITs attract foreign direct investment (FDI) to a developing country. We evaluate the effect of BIT termination on the FDI inflows using the double and triple difference approaches (DD and DDD) and the synthetic control (SCM) methods. Our study finds that BIT termination led to a significant decrease in FDI inflows from the country with which India terminated the agreement. Thus, the study confirms that BIT is an essential mechanism for attracting FDI.

Research target: Economics and Management Political Science, International Relations, and Public Administration
Language: English
DOI
Text on another site
Keywords: India difference-in-differencesbilateral investment treaties (BIT)synthetic control method
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