Skip to main content
Kent Academic Repository

Foreign Direct Investment and Civil Liberties: A New Perspective

Adam, Antonis, Filippaios, Fragkiskos (2007) Foreign Direct Investment and Civil Liberties: A New Perspective. European Journal of Political Economy, 23 (4). pp. 1038-1052. ISSN 0176-2680. (doi:10.1016/j.ejpoleco.2006.08.006) (KAR id:5416)


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
DOI/Identification number: 10.1016/j.ejpoleco.2006.08.006
Uncontrolled keywords: FDI; Political liberties; Civil liberties
Subjects: H Social Sciences
Divisions: Divisions > Kent Business School - Division > Kent Business School (do not use)
Depositing User: Fragkiskos Filippaios
Date Deposited: 27 Jun 2008 16:43 UTC
Last Modified: 16 Nov 2021 09:43 UTC
Resource URI: (The current URI for this page, for reference purposes)

University of Kent Author Information

Filippaios, Fragkiskos.

Creator's ORCID:
CReDIT Contributor Roles:
  • Depositors only (login required):

Total unique views for this document in KAR since July 2020. For more details click on the image.