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Association: Name: The Midwest Political Science Association URL: http://www.indiana.edu/~mpsa/
Citation: URL: http://www.allacademic.com/meta/p83662_index.html Direct Link: HTML Code:

Hess, Michael. "Foreign Direct Investment and Political Stability: Why Investors Like Democracy…and Stable Autocratic States" Paper presented at the annual meeting of the The Midwest Political Science Association, Palmer House Hilton, Chicago, Illinois, Apr 15, 2004 <Not Available>. 2009-05-26 <http://www.allacademic.com/meta/p83662_index.html>

Hess, M. L. , 2004-04-15 "Foreign Direct Investment and Political Stability: Why Investors Like Democracy…and Stable Autocratic States" Paper presented at the annual meeting of the The Midwest Political Science Association, Palmer House Hilton, Chicago, Illinois Online <.PDF>. 2009-05-26 from http://www.allacademic.com/meta/p83662_index.html

Publication Type: Conference Paper/Unpublished Manuscript Review Method: Peer Reviewed Abstract: Theories of economic development make contradictory arguments. Depending on the perspective, democracies and autocracies both can attract foreign direct investment because of some unique characteristics they possess. In particular, each type of regime must create a stable environment for investment. I build a model that tests the effects of regime type on foreign direct investment and I find a curvilinear relationship exists between them. I also find that measures of political instability have negative effects on foreign direct investment. These two findings make it likely that instability, rather than democracy, is more important in the choice of investment locations.

Economic Sanction Effectiveness to Foreign Direct Investment Inflows in the Target Countries: Sanctions Onset, Macroeconomic Policy, and Political Stability

Political Institutions and Foreign Direct Investment in Developing Countries: Does Policy Stability Mean More to Investors than Democracy or Property Rights?

Democracy and International Institutions: The Politics of Foreign Direct Investment into Developing Countries