School of Economics and Finance Seminar Series

25 Feb 2016 12:00 PM - 1:00 PM
more info
Albany campus
Atrium, AT 2

Title: “The Economics of Investor Protection: ISDS versus National Treatment”, joint with Wilhelm Kohler (University of Tübingen)

Abstract: This paper scrutinizes the effects of investor-state dispute settlements (ISDS) and national treatment provisions in a two-period model where foreign investment is subject to domestic regulation and a holdup problem. It shows that ISDS can indeed mitigate the holdup problem and increases aggregate welfare, but comes with additional regulatory distortions for the first period. A national treatment provision avoids these regulatory distortions, but implies entry distortions because it makes the holdup problem also apply to domestic firms. If the domestic regulatory framework applies to many domestic firms, a national treatment provision welfare-dominates ISDS.

Short bio: Frank Staehler is currently the Fred Gruen Visiting Professor at the Australian National University, a Professor of Economics at the University of Tübingen, a Professorial Research Fellow (part time) and an Adjunct Professor of Economics at the University of Adelaide. As the Professorial Research Fellow he runs the European branch of the Centre for International Economic Studies (CIES) that is located in Tübingen. He is also a member of the CESifo research network, as well as of the ATE Research Network and he is the co-organizer of the Australasian Trade Workshop. He is the coordinator of the Doctoral Program in Economics (DPE)at the University of Tübingen. Furthermore, he coordinates the double degree program between the University of Adelaide and the University of Tübingen that gives students from both universities the opportunity to acquire a University of Adelaide Honours degree in Economics and a University of Tübingen Master of Science degree in Economics simultaneously. His main research interests are in the area of international trade, multinational enterprises, foreign direct investment, tax competition and applied microeconomics.

Extn: 43172

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