Abstract

During the 1990s, several emerging countries signed BITs (Bilateral Investment Treaties) to encourage foreign investment in public services. After more than a decade, we observe international arbitration disputes between investors and local governments, resulting from governmental actions leading to reductions of investors' expected returns, or indirect expropriation. Damage valuation of these cases is complex, and requires the use of appropriate methods. In this article we analyze and compare several methods applicable to international arbitration. We find it fundamental to ...