Corruption and foreign investments: Empirical lessons from treaties and arbitration cases
Professor Yarik Kryvoi, Director of the Investment Treaty Forum, has published an article titled "Corruption and Foreign Investments: Empirical Lessons from Treaties and Arbitration Cases" in the International Journal of Constitutional Law.
This article examines international investment agreements (IIAs) and how they address corruption in foreign investments. It highlights a typology of anti-corruption provisions in these treaties but points out their limited practical impact and the unintended incentives they create.
The analysis includes empirical data showing that corruption allegations are increasingly common in investor-state disputes, with states often making such claims. However, tribunals typically either ignore or dismiss these allegations for lack of proof. In the few cases where corruption is proven, tribunals deny jurisdiction or reject the investor's claims.
The article suggests ways to improve the effectiveness of IIAs in combatting corruption.
The article is available here. A pre-publication draft is available free of charge here.
