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The Politics of Foreign Direct Investment

An Interactive Framework

Bibliographic Data

ID11896019
AuthorsTravis G Coan (0000-0002-4587-3396, Claremont Graduate University, corresponding author), Tadeusz Kugler (La Sierra University)
Year2008
Volume34
Issue4
Pages402-422
Publication date2008-12-05
Open AccessNo
TypeARTICLE
VenueInternational Interactions (JOURNAL)
Journal identifiersISSN: 0305-0629 • E-ISSN: 1547-7444
PublisherTaylor & Francis (PUBLISHER • GB)
DOI10.1080/03050620802561462
OpenAlexW2121014393
LanguageEN
Citations received5
References cited41

Recent scholarship on the political determinants of foreign direct investment (FDI) point to the importance of a government's level of political capacity. Governments with high levels of capacity, it is argued, have the political power and economic resources to carry out preferred policy objectives. This line of reasoning, however, fails to provide insight into what these policy objectives are likely to include. The present study attempts to overcome this deficiency in the literature by modeling explicitly the interactive relationship between open market policy environments and relative political capacity (RPC). We argue that governments with open market policy frameworks and high levels of political capacity send clear signals of a political environment conducive to sustained profitability. Our empirical results confirm the expected interactive relationship, providing important insight into the expected effects of open market policies and political capacity

Economic growth · Economic system · Economics · Foreign direct investment · Government (linguistics · Investment (military · Investment Decisions · Macroeconomics · Microeconomics · Political economy · Political science · Politics · Production (economics · Profitability index · Public economics · Scholarship · Corruption and Economic Development · International Arbitration and Investment Law · International Business and FDI · Finance

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Citations per year0.29
Citation span2009 - 2025 (17)
Highly citedNo

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