WSEAS Transactions on Business and Economics


Print ISSN: 1109-9526
E-ISSN: 2224-2899

Volume 15, 2018

Notice: As of 2014 and for the forthcoming years, the publication frequency/periodicity of WSEAS Journals is adapted to the 'continuously updated' model. What this means is that instead of being separated into issues, new papers will be added on a continuous basis, allowing a more regular flow and shorter publication times. The papers will appear in reverse order, therefore the most recent one will be on top.

Volume 15, 2018


Does international Arbitration Affect Economic Growth in Latin America?

AUTHORS: Edgardo Cayón, Juan Santiago Correa, Lina de la Espriella

Download as PDF

ABSTRACT: In this paper, we examine the effects of international arbitration on GDP growth in Latin American countries. After reviewing the literature on the importance of arbitration from an economic standpoint, and by using a panel regression that allows us to control for country effects, we found that international arbitration has a positive effect on economic growth. Finally, to check for robustness, we control for country effects, and we find that the most relevant control variables that affect GDP growth are the current account deficit, inflation, income inequality, and the average duration of an arbitrage process in a specific country

KEYWORDS: Latin America, international arbitration, economic growth, gross domestic product, foreign direct investment

REFERENCES:

[1] Casella, A. (1996). On market integration and the delevopment of institutions: The case of international commercial arbitration. European Economic Review(40), 115-186.

[2] Cooter, R., & Ulen, T. (2012). Law and Economics. Boston: Pearson Addison Wesley.

[3] Franck, S. D. (2006). Foreign direct investment, investment treaty arbitration, and the rule of law. Pac. McGeorge Global Bus. & Dev. LJ, 19, 337.

[4] Grilli, V., & Milesi-Ferretti, G. M. (1995). Economic effects and structural determinants of capital controls. Staff Papers, 42(3), 517- 551.

[5] La Porta, R., Lopez-de-Silanes, F., Shleifer, A., & Vishny, R. W. (1997). Legal determinants of external finance. Journal of Finance, 1131-1150.

[6] Parviz, A. (2016). GDP growth determinants and foreign direct investment causality: the case of Iran. The Journal of International Trade and Economic Development, 25(6), 897-913.

[7] Posner. (1998). Creating a legal framework for economic development. The World Bank Research Observer, 13(1), 1-11.

[8] Posner. (2011). Economic Analysis of Law. Frederick: Aspen Publishers.

[9] Salacuse, J. W., & Sullivan, N. P. (2005). Do BITs really work: An evaluation of bilateral investment treaties and their grand bargain. Harv. Int'l LJ, 46, 67.

[10]Smarzynska Javorcik, B. (2004). Does foreign direct investment increase the productivity of domestic firms? In search of spillovers through backward linkages. American Economic Review, 94(3), 605-627.

[11] Worldbank. (2017). ICSID. 2018, from https://icsid.worldbank.org/en/Pag es/about/default.aspx

WSEAS Transactions on Business and Economics, ISSN / E-ISSN: 1109-9526 / 2224-2899, Volume 15, 2018, Art. #51, pp. 505-511


Copyright Β© 2018 Author(s) retain the copyright of this article. This article is published under the terms of the Creative Commons Attribution License 4.0