Replication Data for Bilateral versus Multilateral Investment Treaties: Learning from Success and Failure

This study investigates the idea that the failure of one pattern of cooperation plays a significant role in the emergence of an alternative pattern of cooperation. Specifically, whether the failure of multilateralism increased the odds of adoption for bilateralism in the investment domain. Our empirical models assess the impact of failure of multilateralism and the success of bilateralism on the signing of additional bilateral agreements in the investment domain using data from1958-2023. The results demonstrate that country dyads engaged in failed multilateral negotiations were more likely to sign Bilateral Investment Treaties (BITs), with positive feedback from success by signed BITs also reinforcing the pattern. In the aftermath of failed multilateral episodes, dyads engaged in the multilateral effort turn to bilateral agreements as an alternative forum for cooperation, increasing the momentum for bilateral forms of cooperation.