Party determinants of FDI
Evidence from governing party fractionalization in government
Bibliographic Data
| ID | 6314901 |
|---|---|
| Authors | Jiangang Jiang (0000-0003-4813-6575, Hunan Normal University), Jianhong Zhang (0000-0003-1209-7746, Nyenrode Business University, The Netherlands, corresponding author), H Cao (0000-0003-3635-9499, Hunan Normal University) |
| Year | 2022 |
| Volume | 28 |
| Issue | 4 |
| Pages | 755-769 |
| Publication date | 2022-07-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Party Politics (JOURNAL) |
| Journal identifiers | ISSN: 1354-0688 • E-ISSN: 1460-3683 |
| Publisher | SAGE Publications Inc (PUBLISHER) |
| DOI | 10.1177/13540688211011931 |
| OpenAlex | W3159282536 |
| Language | EN |
| Citations received | 1 |
| References cited | 71 |
Based on real option theory and transaction cost theory, we hypothesize that a high level of governing party fractionalization in the host country’s government fosters FDI because high governing party fractionalization is associated with low economic policy uncertainty. By using the data of governing party fractionalization in 135 host countries and greenfield FDI projects from China from 2003 to 2015, the findings of the study confirm the positive effect of governing party fractionalization on FDI. Moreover, the results of our studies confirm that the positive effect of governing party fractionalization on FDI is weakened for investing firms with experience in host countries and with central government ownership, for FDI projects conducted in natural resource industries, and in host countries with high GDP growth and low capital abundance. We further confirm that economic policy uncertainty is a mechanism through which governing party fractionalization influences FDI
Business · Development economics · Economic system · Economics · Ethnic group · Foreign direct investment · Fractionalization · Government (linguistics · International economics · Macroeconomics · Microeconomics · Political science · Transaction cost · Climate Change Policy and Economics · Energy, Environment, Economic Growth · Fiscal Policy and Economic Growth · Law
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| Citation velocity | historical |
|---|---|
| Highly cited | No |