Foreign direct investment and civil rights: Testing decreasing returns to civil rights

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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).

Original languageEnglish
Pages (from-to)5-21
Number of pages17
JournalRomanian Journal of Political Science
Volume10
Issue number1
Publication statusPublished - 2010

All Science Journal Classification (ASJC) codes

  • Sociology and Political Science
  • Political Science and International Relations

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