ABSTRACT

The purpose of this chapter is to discover the internal factors that persuaded Azerbaijan and Turkey to accept stabilisation clauses in their investment contracts. The chapter gives attention to the specific guarantees available to foreign investors in Azerbaijani and Turkish foreign investment laws. This investigation is supported by a comparative analysis of the respective countries’ political regimes. An attempt is made to respond to the following questions: How are the divergent political regimes effective in promoting FDI and giving consent to stabilisation clauses in Azerbaijani and Turkish host government contracts? What reasons have caused Azerbaijan and Turkey to agree to contractual stability in the BTC host governmental agreements?