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The method by which a small country leveraged itself to a position amongst the world's most innovative and competitive nations in the era of globalization indeed merits assessment. Switzerland has built its once largely agriculture-based economy into a sophisticated model grounded mainly on advanced technology and services. Today, 73 percent of the workforce is employed in the tertiary sector (service sector and service industry), 23 percent in the secondary or manufacturing sector, and four percent in the primary or agricultural sector (Federal Department of Foreign Affairs, 2012a). Much of the success achieved in this economic evolution has been attributed to innovation- focused policy strategies and policy dynamics that have created of Switzerland a competitive market economy. Notwithstanding the global financial crisis, Switzerland's economy remains strong; it has one of the highest Gross National Income (GNI) per capita rates in the world, low unemployment rates with stable economic, political and financial systems (World Bank, 2012a).

This study examines the impact of bilateral investment treaties (BITs) on Swiss foreign direct investment (FDI). It also investigates the role of BITs as protective tools of Swiss investment. This paper is based on secondary data analysis; data is obtained from various official entities. This study uses statistical and machine learning techniques in order to detect meaningful relationships between BITs and FDI flows. Our findings suggest that the implementation of BITs have an insignificant impact on the increase of Swiss FDI flows. However, from our examination, two interesting findings have emerged suggesting that the completion of BITs may have an impact on the increase of political stability and rule of law of partner countries. ; Este estudio examina el impacto de los tratados bilaterales de inversión (TBI) de la inversión extranjera directa suizo (IED). También indaga el papel de los TBI como herramientas de protección de inversiones. Esta investigación se basa en análisis de datos secundarios, los datos son obtenidos de diversas entidades oficiales. Este estudio utiliza técnicas de aprendizaje estadístico con el fin de detectar relaciones significativas entre los TBI y los flujos de IED. Nuestros resultados sugieren que la implementación de tratados bilaterales de inversión tiene un impacto insignificante en el aumento de IED suizos. Sin embargo, desde nuestro examen,dos hallazgos interesantes han surgido, proponiendo que los TBI puedan tener un impacto en el aumento de la estabilidad política y el estado de derecho de los países asociados.

This study examines the impact of bilateral investment treaties (BITs) on Swiss foreign direct investment (FDI). It also investigates the role of BITs as protective tools of Swiss investment. This paper is based on secondary data analysis; data is obtained from various official entities. This study uses statistical and machine learning techniques in order to detect meaningful relationships between BITs and FDI flows. Our findings suggest that the implementation of BITs have an insignificant impact on the increase of Swiss FDI flows. However, from our examination, two interesting findings have emerged suggesting that the completion of BITs may have an impact on the increase of political stability and rule of law of partner countries.

An interdisciplinary literature suggests that institutional environment features are significant determinants in the location of foreign direct investment. Weak institutional environment features are considered to have a negative effect on capital inflows. Conversely, empirical studies have found that investors locate in host countries providing high rates of return despite weak institutional environment features. Switzerland is home to some of the most important global investors and one of Europe's largest global investors. Swiss foreign direct investment is an interesting case to examine since it has been nurtured in a well-established institutional environment. In this paper, we evaluate Swiss foreign direct investment located in 56 countries over the period 2005-2009 using statistical and machine learning techniques. From our analysis two models emerge suggesting that Swiss investment favours countries with high political stability and high accountability. However, we also find that Swiss investment does not necessarily discriminate against countries with weak institutional environments.

This paper examines the impact of bilateral investment treaties (BITs) on Swiss foreign direct investment (FDI) flows. It also investigates the role of BITs as protective tools of Swiss investment. This paper is based on secondary data analysis; data is obtained from various official entities. This study uses statistical and machine learning techniques in order to detect meaningful relationships between BITs and FDI flows. Our findings suggest that the implementation of BITs have an insignificant impact on the increase of Swiss FDI flows. However, from our examination, two interesting findings have emerged suggesting that the completion of BITs may have an impact on the increase of political stability and role of law of host countries.