Do political institutions affect foreign direct investment? A survey of U.S. corporations in Latin America

Glen Biglaiser, Joseph L. Staats

Research output: Contribution to journalArticlepeer-review

50 Scopus citations

Abstract

The political economy literature investigates the determinants of foreign direct investment (FDI) based largely on aggregate data, ignoring the actual decision makers. The authors conduct a survey of U.S. chief executive officers- the actual decision makers-of corporations that have investments in Latin America to understand FDI inflows. The authors find that investment risk related to property-rights protection, adherence to rule of law, and an effective court system weighed most heavily in U.S. firm preferences. The results suggest that rather than stress democracy itself as a determining factor, researchers might better focus on the institutions found within democracies.

Original languageEnglish (US)
Pages (from-to)508-522
Number of pages15
JournalPolitical Research Quarterly
Volume63
Issue number3
DOIs
StatePublished - 2010

Bibliographical note

Copyright:
Copyright 2010 Elsevier B.V., All rights reserved.

Keywords

  • effective courts
  • foreign direct investment
  • investment security
  • property rights
  • rule of law

Fingerprint

Dive into the research topics of 'Do political institutions affect foreign direct investment? A survey of U.S. corporations in Latin America'. Together they form a unique fingerprint.

Cite this