Do Civil and Political Repression Really Boost Foreign Direct Investments?
AbstractMultinational enterprises are often accused to have a preference for investing in countries in which the working populations' civil and political rights are largely disregarded. This paper presents an empirical investigation of the popular "political repression boosts FDI" hypothesis and arrives at the conclusion that the hypothesis is not supported. On the contrary, multinational enterprises rather appear to be attracted by countries in which civil and political freedom is respected. Our finding thus supports the notion that there is a positive relationship between democracy and economic growth.
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Bibliographic InfoPaper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 421.
Date of creation: 2001
Date of revision:
Foreign direct investment; globalization; globalisation; democracy; freedom;
Other versions of this item:
- Philipp Harms & Heinrich W. Ursprung, 2002. "Do Civil and Political Repression Really Boost Foreign Direct Investments?," Economic Inquiry, Western Economic Association International, vol. 40(4), pages 651-663, October.
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