Foreign direct investment (FDI) is an important element of the global economy and a central component economic development strategies both developed developing countries. Numerous scholars theorize that benefits attracting multinational corporations come at tremendous political costs, arguing democratic systems attract lower levels international than their authoritarian counterparts. Using cross-sectional time-series tests determinants FDI for more 100 countries, I generate results are...

Political economists point to the levels of economic development, poverty, and income inequality as most important determinants political regimes. The authors present empirical evidence suggesting a robust negative correlation between presence sizable natural resource sector level democracy in Africa. They argue that abundance not only is an determinant democratic transition but also partially determines success consolidation results illuminate fact post-Cold War reforms have been successful...

There is a renewed interest in how political risk affects multinational corporations operating emerging markets. Much of this research has focused on the relationship between democratic institutions and flows foreign direct investment (FDI). Yet existing studies suffer from data problems that only allow for indirect evidence risk. In paper I utilize price insurance agencies to directly test domestic affect premiums multinationals pay coverage against government expropriations contract...

List of Illustrations ix Preface xi Abbreviations xv Chapter 1: Introduction 1 2: Multinational Firms and Domestic Governments 23 3: Theory 40 4: The Race to the Bottom Thesis FDI 53 5: Democracy 72 6: Veto Players 100 7: IMF Inflows 129 8: Conclusion 146 Notes 157 References 167 Index 185

In this paper, we analyze whether International Monetary Fund (IMF) conditionality is exclusively designed to be in line with observable economic indicators or it partly driven by the IMF's major shareholder, United States. A panel data analysis of 206 letters intent from 38 countries, submitted during period April 1997 through February 2003, revealed that number conditions on an IMF loan depended a borrowing country’s voting pattern UN General Assembly. Closer allies States (and other Group...

In this paper we analyze whether IMF conditionality is exclusively designed in line with observable economic indicators or, alternatively, it partly driven by its major shareholder, the US. A panel data analysis of 206 letters intent from 38 countries over period 4/1997-2/2003 reveals that number conditions on an loan depends a borrowing country’s voting pattern UN General Assembly. Closer allies United States (and other G7 countries) receive loans fewer especially prior to elections. These...

In this article we explore the relationship between investments of multinational corporations (foreign direct investment) and income inequality in Mexico. We argue that Mexico's liberalization foreign investment (FDI) inflows 1990s provides a natural experiment to test how FDI affects middle-income country. use an instrumental variables approach as our identification strategy mitigate problems endogeneity omitted variable bias. empirical determinants changes from 1990 2000, find increased...

Strategy research often aims to empirically establish a causal relationship between an independent variable and dependent such as firm performance. For many important strategy questions, however, traditional empirical techniques are not sufficient effects with high confidence. We propose that field experiments have potential be used more widely in research, leveraging methodological innovations from other disciplines address persistent puzzles the literature. first review advantages...

There is a growing literature on how natural resources affect both economic performance and political regimes. In this article the authors add to by focusing resource wealth affects incentives of governments uphold contracts with foreign investors across all sectors. They argue that although states suffer reputation costs from reneging contracts, in natural-resource-dependent economies are less sensitive these costs, leading greater probability expropriation contract disputes. Specifically,...

A strong statistical association between legislative opposition in authoritarian regimes and investment has been interpreted as evidence that legislatures constrain executive decisions reduce the threat of expropriation. Although empirical relationship is robust, scholars have not provided systematic parliaments are able to restrain actions state leaders, reverse activities they disagree with, or remove leaders who violate implied power-sharing arrangement. This article shows legislatures,...

Prevailing work argues that foreign investment reduces corruption, either by competing down monopoly rents or diffusing best practices of corporate governance. We argue the mechanisms generating this relationship are not clear because extant empirical is too heavily drawn from aggregations total entering an economy. Alternatively, we suggest openness to has differential effects on corruption even within same country and under domestic institutions over time. firms use bribes enter protected...

Much political science scholarship, including important work in this journal, has explored the implications of natural resource endowments— particularly oil and other highly valuable export commodities—on economic outcomes. Although first wave literature emphasized negative effects these resources, more recent emphasizes how domestic institutions can condition relationship, sometimes leading to positive effects. In special issue, authors expand two ways. First, they renew attention on...

Abstract International relations scholarship has made great progress on the study of compliance with international agreements. While persuasive, most this work focused states’ de jure decisions, largely excluding facto behavior nonstate actors whose actions agreement hopes to constrain. Of particular interest been whether OECD Anti-Bribery Convention (ABC) might reduce propensity multinational corporations (MNCs) bribe officials in host countries through its mechanisms extraterritoriality...

In 2015, Comparative Political Studies embarked on a landmark pilot study in research transparency the social sciences. The editors issued an open call for submissions of manuscripts that contained no mention their actual results, incentivizing reviewers to evaluate based theoretical contributions, designs, and analysis plans. three papers this special issue are result process began with 19 submissions. article, we describe rationale pilot, expressly articulating practices preregistration...

A selection model for 68 countries between 1970 and 1998 is used to test the impact of International Monetary Fund(IMF) programs on international capital markets examine how agreements are perceived by multinational investors. Results reveal that even after controlling factors lead seek IMF support, lower levels foreign direct investment (FDI). Countries sign agreements, ceteris paribus, attract 25% less FDI inflows than not under agreements.

Agricultural trade protectionism in developed countries remains a politically charged issue, yet few studies have attempted to explain the political dynamics behind this important issue. We consider agricultural subsidies as type of distributive policy that targets sector at expense consumers and taxpayers. Based on Cox (1987, 1990) Myerson (1993), we argue electoral systems encourage politicians appeal narrow constituency tend higher level support. test theoretical hypothesis using OECD...

Both countries and subnational governments commonly engage in competition for mobile capital, offering generous incentives to attract investment. Existing economics research has suggested that these tax have a limited ability affect investment patterns are often excessively costly when measured against the amount of jobs created. In this paper, we argue instead "competition" capital can be politically beneficial incumbent politicians. Building off work on electoral pandering, allow...

Little is known about the political repercussions of banking crises despite extensive literature on link between economic performance and outcomes. We develop a theory how clarity responsibility affects incumbent party survival patterns in 89 democracies 1975 2005. Our results are robust to modeling strategies that include hazard models with shared frailties account for country-specific factors affect survival. find globalization weakens accountability politicians voters. Incumbents...

Abstract Government economic development programmes provide opportunities for firms to leverage financial incentives business expansion and relocation. This article examines the ability of these promote employment. Using establishment-level data from state Kansas as well original firm-level survey data, I evaluate effectiveness in creating jobs through recipient firms. My findings indicate that incentive have no discernable impact on firm expansion, measured by job creation. In addition,...