Democracy, foreign direct investment and natural resources

• 成果类型: Article
• 署名作者: Asiedu, Elizabeth; Lien, Donald
• 署名单位: University of Kansas; University of Texas System; University of Texas at San Antonio
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/j.jinteco.2010.12.001
• 发表日期: 2011
• 页码: 99-111
• 关键词: Democracy; Foreign direct investment; natural resources

摘要

Empirical studies that examine the impact of democracy on foreign direct investment (FDI) assume that the relationship between democracy and FDI is the same for resource exporting and non-resource exporting countries. This paper examines whether natural resources in host countries alter this relationship. We estimate a linear dynamic panel-data model using data from 112 developing countries over the period 1982-2007. We find that democracy promotes FDI if and only if the value of the share of minerals and oil in total exports is less than some critical value. We identify 90 countries where an expansion of democracy may enhance FDI and 22 countries where an increase in democratization may reduce FDI. We also find that the effect of democracy on FDI depends on the size and not the type of natural resources. (C) 2010 Elsevier B.V. All rights reserved.