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Autocracy, Democracy and FDI inflows in Asian Developing Countries

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  • Shah, Mumtaz Hussain
  • Lala, Gule

Abstract

The study examines the effect of autocracy and democracy on FDI inflows in Asian developing countries from 1990-2010. Using multiple regression analysis the study found the positive and significant effect of autocracy on FDI inflows in the selected range of countries while democracy statistically shows negative and significant effect on FDI inflows. Among controlling variables market capitalization, population, literacy rate, sea access and trade shows significant and positive effect on FDI inflows in both models while imports and exports shows insignificant results with autocracy.

Suggested Citation

  • Shah, Mumtaz Hussain & Lala, Gule, 2017. "Autocracy, Democracy and FDI inflows in Asian Developing Countries," MPRA Paper 107248, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:107248
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    Cited by:

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    More about this item

    Keywords

    Autocracy; Democracy; Panel Data; FDI; Multinational Corporations;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • K30 - Law and Economics - - Other Substantive Areas of Law - - - General

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