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

Rodolphe Desbordes; Vincenzo Verardi

doi:10.1111/1468-0106.12204

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

Rodolphe Desbordes, Vincenzo Verardi

Centre of Research in the Economics of Development

Research output: Contribution to journal › Article › peer-review

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.

Original language	English
Pages (from-to)	43-82
Number of pages	40
Journal	Pacific Economic Review
Volume	22
Issue number	1
DOIs	https://doi.org/10.1111/1468-0106.12204
Publication status	Published - 1 Feb 2017

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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.",

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

Abstract

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