Munich Personal RePEc Archive

Foreign Direct Investment and Civil Rights: Testing Decreasing Returns to Civil Rights

Ponce, Aldo (2010): Foreign Direct Investment and Civil Rights: Testing Decreasing Returns to Civil Rights.

[img]
Preview
PDF
MPRA_paper_22020.pdf

Download (261Kb) | Preview

Abstract

In 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).

UB_LMU-Logo
MPRA is a RePEc service hosted by
the Munich University Library in Germany.