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Dictators’ facial characteristics and foreign direct investment

Author

Listed:
  • Abel François

    (LEM - Lille économie management - UMR 9221 - UA - Université d'Artois - UCL - Université catholique de Lille - Université de Lille - CNRS - Centre National de la Recherche Scientifique)

  • Sophie Panel

    (IEPG - Sciences Po Grenoble-UGA - Institut d'études politiques de Grenoble - UGA - Université Grenoble Alpes, CESICE - Centre d'études sur la sécurité internationale et les coopérations européennes - UGA - Université Grenoble Alpes - IEPG - Sciences Po Grenoble-UGA - Institut d'études politiques de Grenoble - UGA - Université Grenoble Alpes)

  • Laurent Weill

    (EM Strasbourg - École de Management de Strasbourg = EM Strasbourg Business School, MGIMO - Moscow State Institute of International Relations)

Abstract

This paper investigates whether foreign direct investment (FDI) inflows are higher in countries ruled by trustworthy-looking or competent-looking leaders. After collecting pictures of 276 nondemocratic leaders in office between 1975 and 2010, we use a computer-based survey to assess how these faces are spontaneously perceived by ordinary people for trustworthiness and competence. We perform regression analysis to evaluate the relationship between leaders' facial characteristics and FDI inflows. We find that competent-looking leaders attract more FDI inflows. However, there is no evidence that trustworthy-looking leaders attract more FDI inflows.

Suggested Citation

  • Abel François & Sophie Panel & Laurent Weill, 2023. "Dictators’ facial characteristics and foreign direct investment," Post-Print hal-03969697, HAL.
    • Handle: RePEc:hal:journl:hal-03969697
    DOI: 10.1016/j.leaqua.2022.101644
    as

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