Politics and foreign direct investment

Nathan M. Jensen, Glen Biglaiser, Quan Li, Edmund Malesky, Pablo M. Pinto, Santiago M. Pinto, Joseph L. Staats

Research output: Book/ReportBook

84 Scopus citations


For decades, free trade was advocated as the vehicle for peace, prosperity, and democracy in an increasingly globalized market. More recently, the proliferation of foreign direct investment has raised questions about its impact upon local economies and politics. Here, seven scholars bring together their wide-ranging expertise to investigate the factors that determine the attractiveness of a locale to investors and the extent of their political power. Multinational corporations prefer to invest where legal and political institutions support the rule of law, protections for property rights, and democratic processes. Corporate influence on local institutions, in turn, depends upon the relative power of other players and the types of policies at issue.

Original languageEnglish (US)
PublisherUniversity of Michigan Press
Number of pages211
ISBN (Print)9780472051762
StatePublished - 2012


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