Arbeitspapier

Do Civil and Political Repression Really Boost Foreign Direct Investments?

Multinational enterprises are often accused to have a preference for investing in countries in which the working populations' civil and political rights are largely disregarded. This paper presents an empirical investigation of the popular political repression boosts FDI hypothesis and arrives at the conclusion that the hypothesis is not supported. On the contrary, multinational enterprises rather appear to be attracted by countries in which civil and political freedom is respected. Our finding thus supports the notion that there is a positive relationship between democracy and economic growth.

Language
Englisch

Bibliographic citation
Series: CESifo Working Paper ; No. 421

Classification
Wirtschaft
Subject
Foreign direct investment
globalization
globalisation
democracy
freedom

Event
Geistige Schöpfung
(who)
Harms, Philipp
Ursprung, Heinrich
Event
Veröffentlichung
(who)
Center for Economic Studies and ifo Institute (CESifo)
(where)
Munich
(when)
2001

Handle
Last update
10.03.2025, 11:42 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Harms, Philipp
  • Ursprung, Heinrich
  • Center for Economic Studies and ifo Institute (CESifo)

Time of origin

  • 2001

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