Foreign Direct Investment and Civil Rights: Testing Decreasing Returns to Civil Rights
AbstractIn this paper, I examine the effectiveness of improvements in political and civil rights for attracting foreign direct investment flows (FDI) into democracies. I contend that advances in the quality of democracy – specifically those concerning civil rights – present positive but decreasing marginal returns in attracting FDI inflows. I empirically prove this proposition by using panel data regressions within the Latin American and Eastern European contexts from periods following their democratization (1991-2003).
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 22020.
Date of creation: 15 Mar 2010
Date of revision:
foreign direct investment; civil rights; democratization; developing nations; Latin America; Eastern Europe;
Find related papers by JEL classification:
- K12 - Law and Economics - - Basic Areas of Law - - - Contract Law
- K00 - Law and Economics - - General - - - General (including Data Sources and Description)
- F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
- K11 - Law and Economics - - Basic Areas of Law - - - Property Law
- K31 - Law and Economics - - Other Substantive Areas of Law - - - Labor Law
- P52 - Economic Systems - - Comparative Economic Systems - - - Comparative Studies of Particular Economies
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-04-24 (All new papers)
- NEP-IFN-2010-04-24 (International Finance)
- NEP-LAW-2010-04-24 (Law & Economics)
- NEP-POL-2010-04-24 (Positive Political Economics)
- NEP-TRA-2010-04-24 (Transition Economics)
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