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Democratic transitions can attract foreign direct investment: Effect, trajectories, and the role of political risk

Jean Lacroix, +2 more
- 01 Jun 2021 - 
- Vol. 49, Iss: 2, pp 340-357
TLDR
This article used a difference-in-differences method on a panel of 115 developing countries from 1970 to 2014 to find that democratic transitions do not affect foreign direct investment (FDI) inflows, on average.
About: 
This article is published in Journal of Comparative Economics.The article was published on 2021-06-01 and is currently open access. It has received 12 citations till now. The article focuses on the topics: Foreign direct investment & Political risk.

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Property and Contract Rights in Autocracies and Democracies

Christopher K. Clague, +3 more
- 01 Jan 1996 - 
TL;DR: In this paper, the authors present and test empirically a new theory of property and contract rights and show that the age of a democratic system is strongly correlated with the protection of these rights.
Posted ContentDOI

Does Poverty deter Foreign Direct Investment flows to Developing Countries

Gnangnon Sk
TL;DR: In this paper, the authors investigated the effect of poverty on foreign direct investment (FDI) inflows in developing countries and found that poverty influences negatively FDI inflows, including through its adverse effect on human capital.
Journal ArticleDOI

Political regimes and foreign investment in poor countries: Insights from most similar African cases:

Arthur A. Goldsmith
- 12 Apr 2021 - 
TL;DR: This article found that foreign investors choose to invest in a poor country, do they favor democracies or autocracies? Despite extensive time-series cross-national empirical work on this question, the answer is uncl
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Foreign direct investment and economic growth nexus in the presence of domestic institutions: a regional comparative analysis

Sami Ullah, +2 more
- 20 Apr 2022 - 
Journal ArticleDOI

Does poverty deter foreign direct investment flows to developing countries?

Sèna Kimm Gnangnon
- 28 Jan 2022 - 
References
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Journal ArticleDOI

How Much Should We Trust Differences-In-Differences Estimates?

Marianne Bertrand, +2 more
- 01 Feb 2004 - 
TL;DR: In this article, the authors randomly generate placebo laws in state-level data on female wages from the Current Population Survey and use OLS to compute the DD estimate of its "effect" as well as the standard error of this estimate.
Book

The Third Wave: Democratization in the Late Twentieth Century

Samuel P. Huntington
TL;DR: The third wave of democratization in the late 1970s and early 1990s as mentioned in this paper is the most important political trend in the last half of the 20th century, according to the authors.
ReportDOI

Instrumental variables regression with weak instruments

Douglas O. Staiger, +1 more
- 01 May 1997 - 
TL;DR: In this paper, the authors developed asymptotic distribution theory for instrumental variable regression when the partial correlation between the instruments and a single included endogenous variable is weak, here modeled as local to zero.
Book

Polyarchy; participation and opposition

Robert A. Dahl
TL;DR: Dahl as discussed by the authors made a major statement about what democracy is and They may not an increase in, homogeneous societies this appears to freely and the southern. Dahl regards as opposed to run in previous chapters.
Posted Content

Estimation and Inference in Large Heterogeneous Panels with a Multifactor Error Structure

M. Hashem Pesaran
- 01 Nov 2004 - 
TL;DR: In this article, the authors proposed a new approach to estimation and inference in panel data models with a multifactor error structure where the unobserved common factors are correlated with exogenously given individual-specific regressors, and the factor loadings differ over the cross-section units.
Frequently Asked Questions (4)
Q1. What are the contributions in "Do democratic transitions attract foreign investors? if so, how fast?" ?

This paper used a difference-in-differences method on a panel of 115 developing countries from 1970 to 2014 to find that democratic transitions do not affect foreign direct investment ( FDI ) inflows, on average. 

law and order, government stability, and ethnic tensions arethe dimensions of the ICRG11 index that significantly affect FDI. 

is positive when controlling for law andorder, corruption, religious conflict, ethnic conflict, internal conflict, government stability andmilitary in politics. 

The law and order, government stability, and ethnictensions components of the ICRG11 indexes bear a positive coefficient that is statisticallysignificant at standard levels, suggesting that they are the dimensions of political risk that matterthe most to foreign investors.