Foreign Direct Investment and Civil Liberties: A New Perspective

Adam, A. and Filippaios, F. (2007) Foreign Direct Investment and Civil Liberties: A New Perspective. European Journal of Political Economy, 23 (4). pp. 1038-1052. ISSN 0176-2680. (Full text available)

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http://dx.doi.org/10.1016/j.ejpoleco.2006.08.006

Abstract

The conjecture that democracy discourages foreign direct investment (FDI) has been widely refuted in empirical studies. However, we find support of this view. We distinguish between civil and political liberties and propose that multinational firms tend to invest in countries with low civil but with high political liberties. We show that the negative relationship between civil liberties and FDI is hump-shaped. A threshold level of civil liberties exists, below which repression of civil liberties is associated with more FDI. The results are explained by different economic motives for FDI in different groups of countries

Item Type: Article
Uncontrolled keywords: FDI; Political liberties; Civil liberties
Subjects: H Social Sciences
Divisions: Faculties > Social Sciences > Kent Business School > International Business and Strategy
Depositing User: Fragkiskos Filippaios
Date Deposited: 27 Jun 2008 16:43
Last Modified: 05 Sep 2011 23:44
Resource URI: http://kar.kent.ac.uk/id/eprint/5416 (The current URI for this page, for reference purposes)
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