Democratization and Success in the Global Economy: Are they Compatible?

By Oksan Bayulgen and Jeffrey W. Ladewig.

Published by The Social Sciences Collection

Format Price
Article: Print $US10.00
Article: Electronic $US5.00

In this study, we theoretically refine and empirically test the presumed links between the level of democracy in a country and the amount of foreign direct investment (FDI) it receives in the global economy. We argue that both consolidated democracies and authoritarian regimes have institutional advantages for investors and that both are relatively more successful in attracting FDI. Hybrid regimes, on the other hand, with limited amount of executive constraints and nascent political institutions have a harder time attracting FDI. We test our theory on 99 non-OECD countries between the years 1970-2000. The results confirm our hypotheses and demonstrate that the link between democracy and FDI is U-shaped. Further democratization does not always enhance a country’s ability to attract FDI.

Keywords: Globalization, Foreign Direct Investment, Democratization

The International Journal of Interdisciplinary Social Sciences, Volume 2, Issue 1, pp.321-328. Article: Print (Spiral Bound). Article: Electronic (PDF File; 698.117KB).

Prof. Oksan Bayulgen

Assistant professor, Department of Political Science, University of Connecticut, Storrs, Connecticut, USA

Prof. Jeffrey W. Ladewig

Assistant professor, Department of Political Science, University of Connecticut, Storrs, Connecticut, USA


Reviews:

There are currently no reviews of this product.

Write a Review