Foreign Direct Investment and Democracy: A Robust Fixed Effects Approach to a Complex Relationship

40 Pages Posted: 2 Jun 2020

See all articles by Rodolphe Desbordes

Rodolphe Desbordes

SKEMA Business School

Vincenzo Verardi

FUNDP - University of Namur. CRED

Date Written: February 2017

Abstract

We develop a new robust‐to‐outliers dummy estimator that we subsequently apply to investigate the impact of various democratic attributes on foreign direct investment in recent years. We find that democracy has generally a positive impact on foreign direct investment, once outliers are controlled for, but that this relationship is very specific to each host country's characteristics.

Suggested Citation

Desbordes, Rodolphe and Verardi, Vincenzo, Foreign Direct Investment and Democracy: A Robust Fixed Effects Approach to a Complex Relationship (February 2017). Pacific Economic Review, Vol. 22, Issue 1, pp. 43-82, 2017, Available at SSRN: https://ssrn.com/abstract=3615280 or http://dx.doi.org/10.1111/1468-0106.12204

Rodolphe Desbordes (Contact Author)

SKEMA Business School ( email )

Lille
France

Vincenzo Verardi

FUNDP - University of Namur. CRED ( email )

8 Rempart de la Vierge
Namur, 5000
Belgium

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