Foreign direct investment and civil liberties: A new perspective

Adam, Antonis and Filippaios, Fragkiskos (2007) Foreign direct investment and civil liberties: A new perspective. European Journal of Political Economy, 23 (4). pp. 1038-1052. ISSN 0176-2680

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Abstract

The conjecture that democracy discourages foreign direct investment (FDI) has been widely refuted in empirical studies. However, we find support of this view. We distinguish between civil and political liberties and propose that multinational firms tend to invest in countries with low civil but with high political liberties. We show that the negative relationship between civil liberties and FDI is hump-shaped. A threshold level of civil liberties exists, below which repression of civil liberties is associated with more FDI. The results are explained by different economic motives for FDI in different groups of countries.

Item Type: Article
Faculty \ School: Faculty of Social Sciences > Norwich Business School
Depositing User: LivePure Connector
Date Deposited: 07 May 2020 00:05
Last Modified: 07 May 2020 00:05
URI: https://ueaeprints.uea.ac.uk/id/eprint/75069
DOI: 10.1016/j.ejpoleco.2006.08.006

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