| ID | 130994 |
| Title Proper | Bounded rationality and the diffusion of modern investment treaties |
| Language | ENG |
| Author | Poulsen, Lauge N. Skovgaard |
| Publication | 2014. |
| Summary / Abstract (Note) | Given the considerable sovereignty costs involved, the adoption of modern investment treaties by practically all developing countries presents somewhat of a puzzle. Based on a review of leading explanations of investment treaty diffusion, the article advances a new theory using behavioral economics insights on cognitive heuristics. In line with recent work on policy diffusion, it suggests that a bounded rationality framework has considerable potential to explain why, and how, developing countries have adopted modern investment treaties. To illustrate the potential of this approach, the case of South Africa is studied in depth. |
| `In' analytical Note | International Studies Quarterly Vol.58, NO.1; March 2014: p.1-14 |
| Journal Source | International Studies Quarterly Vol.58, NO.1; March 2014: p.1-14 |
| Key Words | Sovereignty ; Politics ; Modern Investment Treaties - MIT ; Developing Countries ; South Africa ; Economic Development ; Behavioral Economics ; Economic Treaties ; Investment Treaty Diffusion - ITD ; Cognitive Heuristics ; Rationality Framework ; Economic Framework ; Diffusion ; Economic Sovereignty |