Abstract

http://ssrn.com/abstract=951949
 
 

References (42)



 
 

Citations (1)



 


 



When FDI Flows from Rich to Poor Countries: Does Democracy Matter?


Selen Sarisoy Guerin


Centre for European Policy Studies (CEPS)

Stefano Manzocchi


Luiss University - Department of Economics

2006

LLEE Working Paper No. 38

Abstract:     
We model the effect of democracy on North-South bilateral foreign direct investment (FDI), and test its impact in a panel of 14 source countries and 24 host countries over 1992-2004. As a benchmark, we adopt a setup that combines variables commonly associated with horizontal FDI (economic dimension of the countries; distance) and variables associated with vertical FDI (per capita income as a proxy for capital endowments). Democracy in the host country has a positive effect of North-South FDI flows, especially when we control for privatization programs. As for the type of democracy, a parliamentary regime could have a positive impact on FDI inflows vis-a-vis a presidential one.

Number of Pages in PDF File: 35

Keywords: Foreign direct investment, democracy

JEL Classification: F21, P0

working papers series





Download This Paper

Date posted: December 17, 2006  

Suggested Citation

Guerin, Selen Sarisoy and Manzocchi, Stefano, When FDI Flows from Rich to Poor Countries: Does Democracy Matter? (2006). Available at SSRN: http://ssrn.com/abstract=951949 or http://dx.doi.org/10.2139/ssrn.951949

Contact Information

Selen Sarisoy Guerin (Contact Author)
Centre for European Policy Studies (CEPS) ( email )
1 Place du Congres
Brussels, 1000
Belgium
+32 2 229 3923 (Phone)
+32 2 219 4151 (Fax)
HOME PAGE: http://www.ceps.be
Stefano Manzocchi
Luiss University - Department of Economics ( email )
Viale Pola, 12
Rome, 00198
Italy
Feedback to SSRN


Paper statistics
Abstract Views: 908
Downloads: 160
Download Rank: 111,480
References:  42
Citations:  1

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo5 in 0.297 seconds