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dc.contributor.authorMcCann, Fergalen
dc.contributor.authorDorsch, Michaelen
dc.contributor.authorMcGuirk, Eoinen
dc.date.accessioned2011-07-15T14:20:21Z-
dc.date.available2011-07-15T14:20:21Z-
dc.date.issued2011-
dc.identifier.urihttp://hdl.handle.net/10419/48286-
dc.description.abstractThis paper considers the relationship between democratic accountability in de- veloping countries and the policies they use to attract foreign direct investment (FDI). We isolate two policy areas that governments of developing countries use to attract FDI: the tax burden on firms and the regulatory standards within which they operate. Countries that maintain high business taxes can only attract FDI by offering a less regulated business environment, which may have associated po- litical costs. The extent to which democratic accountability constrains leaders in their tax/regulatory policy choices is our main line of analysis. The novelty of the paper is that it endogenously determines policy choices within a political economy framework that recognizes the trade-offs between attracting FDI and maintaining political control. Examination of firm-level survey data from foreign firms operating in eastern Europe and central Asian economies confirms our model's main conclusion: regulation is seen to be a relatively larger obstacle to doing business in countries with greater democratic accountability.en
dc.language.isoengen
dc.publisher|aZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften, Leibniz-Informationszentrum Wirtschaft |cKiel und Hamburgen
dc.relation.ispartofseries|aProceedings of the German Development Economics Conference, Berlin 2011 |x56en
dc.subject.ddc330en
dc.titleDemocratic Accountability and the Relative Obstacles to Foreign Investment-
dc.typeConference Paperen
dc.identifier.ppn665576366en
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen
dc.identifier.repecRePEc:zbw:gdec11:56en

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