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12 J. Int'l Disp. Settlement 1 (2021)

handle is hein.journals/jloildte12 and id is 1 raw text is: 




Journal of International Dispute Settlement, 2021, 12, 1-41
doi: 10.1093/jnlids/idaa027
Article




          Do Investor-State Dispute Settlement

       Cases Influence Domestic Environmental

           Regulation? The Role of Respondent

                   State Bureaucratic Capacity

                   Tarald  Laudal  Berge      * and  Axel  Berger**



                                    ABSTRACT
   Does  international politics influence domestic politics? In the investment treaty re-
   gime, there is currently a debate about whether investor-state dispute settlement cases
   influence respondent state domestic regulation. We present a systematic test of this re-
   lationship. Using two unique datasets, we examine whether investor-state cases target-
   ing environmental measures influence respondent states' environmental regulation. We
   make  two theoretical contributions. First, we present an integrated typology of poten-
   tial regulatory responses to investor-state dispute settlement cases. Second, we propose
   a novel, conditional theory of regulatory responses to investor-state cases. We argue
   that states' responses should depend on their bureaucratic capacity. In our analysis, we
   find that respondent state bureaucratic capacity conditions the relationship between
   investor-state cases and subsequent domestic regulation. There is a more pronounced
   negative relationship between investor-state cases and regulatory behavior in states
   with high bureaucratic capacity than in low-capacity states.


                               1. INTRODUCTION
Scholars have  debated  the extent to which  international politics influence domestic
politics for decades. Peter Gourevitch   held  that the main  international sources of
domestic  politics were state power  and  the international economic   system. In  this
article, we analyse the  conditions under  which  the  international economic  regime
that governs  foreign  direct investment  (FDI)   flows-what has been labelled the


*   University of South-Eastern Norway, School of Business & University of Oslo, PluriCourts. Email: t.l.
    berge@stv.uio.no
 ** German Development Institute/Deutsches Institut fir Entwicklungspolitik (DIE). Email: axel.berger@die-
    gdi.de. This study is part of a continuing project, and has benefited from support by the Research Council
    of Norway through its Centres of Excellence funding scheme, project number 223274, and through its
    FRIPRO funding scheme, project number 276009
 1  P Gourevitch, 'The Second Image Reversed: The International Sources of Domestic Politics' (1978) 32(4)
    International Organization 882.


© The Author(s) 2021. Published by Oxford University Press. This is an Open Access article distributed under the terms of
the Creative Commons Attribution License (https://creativecommons.org/licenses/by/4.0/), which permits unrestricted
reuse, distribution, and reproduction in any medium, provided the original work is properly cited.


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