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ECONOMIC TREATIES (2) answer(s).
 
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ID:   130994


Bounded rationality and the diffusion of modern investment trea / Poulsen, Lauge N. Skovgaard   Journal Article
Poulsen, Lauge N. Skovgaard Journal Article
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Publication 2014.
Summary/Abstract 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.
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2
ID:   133649


Hidden world of multilateralism: treaty commitments of newly democratized states in Europe / Milewicz, Karolina M; Elsig, Manfred   Journal Article
Elsig, Manfred Journal Article
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Publication 2014.
Summary/Abstract Why do new EU democracies engage in multilateralism? The dominant explanation proposes that new democracies use international treaties to lock in domestic reforms. This article offers a novel explanation as to why new EU democracies participate in multilateral treaties. We argue that ratifying a treaty serves three external signaling purposes (recognition concerns, increasing strategic autonomy, and pleasing the European Union). We test our argument through a mix of quantitative and qualitative methods. First, we apply event history analysis. Drawing on a new ratification data set comprising 76 multilateral treaties, we illustrate the prominent role of new EU democracies in multilateralism as compared to other new democracies. Second, to assess the importance of external signaling in the decision to ratify multilateral treaties, we examine parliamentary ratification debates in selected Central and Eastern European countries. Third, we compare parliamentary discussions across European and non-European new democracies to demonstrate the different motives driving their approaches toward multilateralism.
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