Do Strict BITS result in increased FDI?

A working paper by the WTO titled More Stringent BITs, Less Ambiguous Effects on FDI? Not a Bit!  asks the question: do host countries of foreign direct investment (FDI) gain attractiveness by granting more rights to, and offering better protection of foreign investors through firmer dispute settlement rights?

The research finds that stricter dispute settlement provisions in Bilateral Investment Treaties (BITS) does not necessarily result in higher FDI inflows hence the effectiveness of BITs as a credible commitment device remains elusive.

The document can be assessed here.