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Dictators’ facial characteristics and foreign direct investment

Abel François, Sophie Panel (sophie.panel@iepg.fr) and Laurent Weill
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Sophie Panel: IEPG - Sciences Po Grenoble-UGA - Institut d'études politiques de Grenoble - UGA - Université Grenoble Alpes, CESICE - Centre d'études sur la sécurité internationale et les coopérations européennes - UGA - Université Grenoble Alpes - IEPG - Sciences Po Grenoble-UGA - Institut d'études politiques de Grenoble - UGA - Université Grenoble Alpes

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Abstract: This paper investigates whether foreign direct investment (FDI) inflows are higher in countries ruled by trustworthy-looking or competent-looking leaders. After collecting pictures of 276 nondemocratic leaders in office between 1975 and 2010, we use a computer-based survey to assess how these faces are spontaneously perceived by ordinary people for trustworthiness and competence. We perform regression analysis to evaluate the relationship between leaders' facial characteristics and FDI inflows. We find that competent-looking leaders attract more FDI inflows. However, there is no evidence that trustworthy-looking leaders attract more FDI inflows.

Keywords: Foreign direct investmen; Authoritarian regimes; First impressions from faces; Political risk (search for similar items in EconPapers)
Date: 2023-04
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Published in Leadership Quarterly, 2023, 34 (2), pp.101644. ⟨10.1016/j.leaqua.2022.101644⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-03969697

DOI: 10.1016/j.leaqua.2022.101644

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