Autocracy, Democracy and FDI inflows in Asian Developing Countries

Mumtaz Shah and Gule Lala

MPRA Paper from University Library of Munich, Germany

Abstract: The study examines the effect of autocracy and democracy on FDI inflows in Asian developing countries from 1990-2010. Using multiple regression analysis the study found the positive and significant effect of autocracy on FDI inflows in the selected range of countries while democracy statistically shows negative and significant effect on FDI inflows. Among controlling variables market capitalization, population, literacy rate, sea access and trade shows significant and positive effect on FDI inflows in both models while imports and exports shows insignificant results with autocracy.

Keywords: Autocracy; Democracy; Panel Data; FDI; Multinational Corporations (search for similar items in EconPapers)
JEL-codes: C23 F13 F14 F21 K30 (search for similar items in EconPapers)
Date: 2017-06
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Citations: View citations in EconPapers (3)

Published in International Journal of Business Studies Review 1.2(2017): pp. 66-77

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