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Human rights protection and foreign direct investment: The case of post‐socialist countries

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  • Anna Lewczuk

Abstract

The main aim of the paper is to evaluate the impact of respect for human rights in post‐socialist countries on the volume of foreign direct investment (FDI). The methodology used in the study consists of the two econometric model specifications–GMM spatial panel Durbin error model and panel gravity ordinary least squares model. The main results indicate a positive and significant relationship between respect for human rights and foreign investment. The outcomes of the spatial model suggest the presence of competition and reinforcement effects of particular kinds of human rights on FDI as well as significance of the ‘human rights distance’.

Suggested Citation

  • Anna Lewczuk, 2019. "Human rights protection and foreign direct investment: The case of post‐socialist countries," Economics of Transition and Institutional Change, John Wiley & Sons, vol. 27(4), pages 1009-1030, October.
    • Handle: RePEc:wly:ectrin:v:27:y:2019:i:4:p:1009-1030
    DOI: 10.1111/ecot.12226
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    References listed on IDEAS

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    1. G. Faber & M.J. Gerritsen, 2009. "External influences on local institutions: spatial dependence and openness," Working Papers 09-11, Utrecht School of Economics.
    2. Qian, Yingyi & Roland, Gerard, 1998. "Federalism and the Soft Budget Constraint," American Economic Review, American Economic Association, vol. 88(5), pages 1143-1162, December.
    3. James P. LeSage, 2014. "What Regional Scientists Need to Know about Spatial Econometrics," The Review of Regional Studies, Southern Regional Science Association, vol. 44(1), pages 13-32, Spring.
    4. Wooton, Ian & Darby, Julia & Desbordes, Rodolphe, 2009. "Does Public Governance Always Matter? How Experience of Poor Institutional Quality Influences FDI to the South," CEPR Discussion Papers 7533, Centre for Economic Policy Research.
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    Cited by:

    1. Anna Lewczuk, 2021. "Are civil liberties contagious? Analysis of determinants of de facto civil rights protection in post-socialist countries," Constitutional Political Economy, Springer, vol. 32(2), pages 187-217, June.
    2. Katarzyna Metelska-Szaniawska & Anna Lewczuk, 2022. "Constitutional overperformance: an empirical study of de facto protection of rights with no de jure equivalents," European Journal of Law and Economics, Springer, vol. 53(2), pages 289-317, April.

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