Capital accumulation is essential for economic development, but investors face risk when putting their capital to productive use. Bilateral Investment Treaties (BITs) commit leaders to limiting takings from foreign assets and generated revenues.
The study offers theory explaining why BITs show a greater advantage for leader survival in autocracies than democracies. Evidence shows these treaties improve the 'investment climate' of signatory states, but this enhancement occurs most significantly within autocratic polities.
Hazard models provide supporting evidence for improved autocratic leader survival following treaty adoption. Importantly, this improvement is also reflected in better creditworthiness scores and higher sovereign bond prices, with stronger effects seen in authoritarian contexts.
Autocratic leaders appear to benefit most from importing property rights-enhancing institutions via BITs.
