...................................................................................................................................... III TABLE OF CONTENTS .................................................................................................................... V INNOVATING THROUGH STRATEGIC ALLIANCES: MOVING TOWARDS INTERNATIONAL PARTNERSHIPS AND CONTRACTUAL AGREEMENTS ...............

We argue that the trend toward international investment agreements (IIAs) with stricter investment rules is driven by competitive diffusion, namely defensive moves of developing countries concerned about foreign direct investment (FDI) diversion in favor of competing host countries. Accounting for spatial dependence in the formation of bilateral investment treaties (BITs) and preferential trade...