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Political environment and foreign direct investment: Evidence from OECD countries

Wisniewski, Tomasz P. and Pathan, Saima K. (2014). Political environment and foreign direct investment: Evidence from OECD countries. European Journal of Political Economy, 36 pp. 13–23.

DOI (Digital Object Identifier) Link: https://doi.org/10.1016/j.ejpoleco.2014.07.004
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Abstract

This paper examines the role that political factors play in the investment location decisions of multinational enterprises. It has been found that foreign direct investors shy away from countries with excessive government spending, especially when this spending is directed towards the military. They also seem to have a slight preference for leftist executives and be negatively predisposed toward situations in which the ruling party has held power for prolonged periods of time. Ceteris paribus, more FDI flows to countries that have presidential systems, established political parties and where the party of the executive controls all houses with lawmaking powers.

Item Type: Journal Item
Copyright Holders: 2014 Elsevier B.V.
ISSN: 0176-2680
Keywords: foreign direct investment; political economy; MNEs; OECD
Academic Unit/School: Faculty of Business and Law (FBL) > Business > Department for Accounting and Finance
Faculty of Business and Law (FBL) > Business
Faculty of Business and Law (FBL)
Item ID: 55381
Depositing User: Tomasz Wisniewski
Date Deposited: 12 Jun 2018 09:25
Last Modified: 09 Dec 2018 04:37
URI: http://oro.open.ac.uk/id/eprint/55381
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