Bounded Rationality and the Diffusion of Modern Investment Treaties

Lauge Skovgaard Poulsen

    Publikation: Bidrag til tidsskriftTidsskriftartikelpeer review


    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
    TidsskriftInternational Studies Quarterly
    Udgave nummer1
    Sider (fra-til)1-14
    Antal sider14
    StatusUdgivet - 2014


    • Investment treaties
    • South Africa
    • Economic policy
    • Foreign investments
    • International economic relations
    • Politics & economics
    • Behavioral economics
    • Sovereignty (Political science)
    • Bounded Rationality