@techreport{Busse2003Democracy,
abstract = {Many believe that multinational enterprises insensitively ignore political rights and civil liberties in the countries of their investments. Frequently, non-governmental organisations accuse multinationals of fostering repressive regimes in developing countries and consider foreign direct investment (FDI) as a tool of exploitation. This paper tries to examine empirically the complex relationship between democracy and FDI in a systematic way, using cross-sectional and panel data analysis. The results indicate that \textendash{} on average \textendash{} investments by multinationals are significantly higher in democratic countries, thereby refuting the hypothesis that political repression fosters FDI. Yet this positive link does not hold for the 1970s, when a considerable share of
FDI flowed to countries with repressive regimes.},
author = {Matthias Busse},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {F21; F23; C31; C33; 330; FDI; Democracy; Political Rights; Civil Liberties; Direktinvestition; Multinationales Unternehmen; Demokratie; Menschenrechte; Sch\"{a}tzung; Welt},
language = {eng},
number = {220},
title = {Democracy and FDI},
type = {HWWA Discussion Paper},
url = {http://hdl.handle.net/10419/19312},
year = {2003}
}
