Foreign direct investment and democracy: a robust fixed effects approach to a complex relationship

Rodolphe Desbordes, Vincenzo Verardi

Research output: Contribution to journalArticle

1 Citation (Scopus)

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 (FDI) in recent years. We find that democracy has generally a positive impact on FDI, once outliers are controlled for, but that this relationship is very specific to each host country’s characteristics.
LanguageEnglish
Pages43-82
Number of pages40
JournalPacific Economic Review
Volume22
Issue number1
DOIs
Publication statusPublished - 22 Feb 2017

Fingerprint

direct democracy
foreign direct investment
outlier
direct investment
foreign investment
democracy
effect
Direct democracy
Outliers
Foreign direct investment
Fixed effects
attribute
Host country
Estimator
Democracy

Keywords

  • foreign direct investment
  • democracy
  • S-estimator
  • categorical variables
  • Stahel-Donoho estimate

Cite this

Desbordes, Rodolphe ; Verardi, Vincenzo. / Foreign direct investment and democracy : a robust fixed effects approach to a complex relationship. In: Pacific Economic Review. 2017 ; Vol. 22, No. 1. pp. 43-82.
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Foreign direct investment and democracy : a robust fixed effects approach to a complex relationship. / Desbordes, Rodolphe; Verardi, Vincenzo.

In: Pacific Economic Review, Vol. 22, No. 1, 22.02.2017, p. 43-82.

Research output: Contribution to journalArticle

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