Promoting socio-political stability through Foreign Direct Investment

Promouvoir la stabilité socio-politique à travers l’investissement direct étranger

Assi Okara

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Abstract: The growing importance of FDI flows to developing countries has implications for their institutional environment as (i) foreign investors do not always adapt to the local environment, (ii) FDI has induced institutional reforms in countries competing to attract them, and (iii) the socioeconomic effects of FDI can trigger institutional changes. The latter argument is what the paper mainly explores in positing that by generating economic opportunities, FDI promotes political stability. The results clearly align with this argument. Accounting for political repression, the findings also highlight that FDI-induced stability is compatible with governmental respect for human rights.

Keywords: Institutions; Political stability; Developing countries; IDE; Institution; Greenfield FDI; Stabilité politique; Pays en développement (search for similar items in EconPapers)
Date: 2023-05-30
New Economics Papers: this item is included in nep-int and nep-pol
Note: View the original document on HAL open archive server: https://hal.science/hal-04123967v1
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Published in 2023, ⟨10.1016/j.econmod.2023.106249)⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-04123967

DOI: 10.1016/j.econmod.2023.106249)

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