We investigate the effect of the political regime on bilateral FDI flows from advanced to emerging countries in the period 1992–2004. We control for country size, per capita income and privatization proceeds in the host country, and use a random-effect Tobit model to exploit information from zero entries. Our results suggest that democracy does have a positive effect on the amount and probability of FDI flows from developed to emerging countries. Moreover, we find that the effect of democracy on FDI also works through the total factor productivity channel, not only the political risk one as suggested in the literature.

Political Regime and FDI from Advanced to Emerging Countries / SELEN S., Guerin; Manzocchi, Stefano. - In: REVIEW OF WORLD ECONOMICS. - ISSN 1610-2878. - 145:(2009), pp. 75-91.

Political Regime and FDI from Advanced to Emerging Countries

MANZOCCHI, STEFANO
2009

Abstract

We investigate the effect of the political regime on bilateral FDI flows from advanced to emerging countries in the period 1992–2004. We control for country size, per capita income and privatization proceeds in the host country, and use a random-effect Tobit model to exploit information from zero entries. Our results suggest that democracy does have a positive effect on the amount and probability of FDI flows from developed to emerging countries. Moreover, we find that the effect of democracy on FDI also works through the total factor productivity channel, not only the political risk one as suggested in the literature.
2009
Political Regime and FDI from Advanced to Emerging Countries / SELEN S., Guerin; Manzocchi, Stefano. - In: REVIEW OF WORLD ECONOMICS. - ISSN 1610-2878. - 145:(2009), pp. 75-91.
File in questo prodotto:
File Dimensione Formato  
Review of World Economics.pdf

Solo gestori archivio

Tipologia: Documento in Post-print
Licenza: DRM (Digital rights management) non definiti
Dimensione 272.46 kB
Formato Adobe PDF
272.46 kB Adobe PDF   Visualizza/Apri
Pubblicazioni consigliate

I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.

Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11385/3249
Citazioni
  • Scopus 56
  • ???jsp.display-item.citation.isi??? 48
  • OpenAlex ND
social impact