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

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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 (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.

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 - 22 Feb 2017

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 10 Reduced Inequalities

Keywords

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

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10.1111/1468-0106.12204

Desbordes-Verardi-PER-2015-Foreign-direct-investment-and-democracy-a-robust-fixed-effectsAccepted author manuscript, 644 KB

Cite this

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KW - S-estimator

KW - categorical variables

KW - Stahel-Donoho estimate

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

Abstract

UN SDGs

Keywords

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