The authors thank Susan Aaronson, Sonia Cardenas, Layna Mosley, Emmanuel Teitelbaum, and the anonymous reviewers for their comments on earlier versions of this manuscript, as well as Roxanne Buckman, Jack Busbee, Drew Dickson, and Katie Nelson for their research assistance. All errors are the responsibility of the authors. The data used in this analysis, as well as the files for running the models, can be found at https://umdrive.memphis.edu/rblanton/public/blanton_FPA2011_data.
Rights, Institutions, and Foreign Direct Investment: An Empirical Assessment1
Article first published online: 10 JAN 2012
© 2012 International Studies Association
Foreign Policy Analysis
Volume 8, Issue 4, pages 431–452, October 2012
How to Cite
Blanton, R. G. and Blanton, S. L. (2012), Rights, Institutions, and Foreign Direct Investment: An Empirical Assessment. Foreign Policy Analysis, 8: 431–452. doi: 10.1111/j.1743-8594.2011.00161.x
- Issue published online: 2 OCT 2012
- Article first published online: 10 JAN 2012
A burgeoning body of literature assesses the sociopolitical factors that influence investment decisions, including the nature of domestic institutions, societal rights, and participation in international institutions and agreements. Oddly enough, these have evolved largely as separate lines of research, and little effort has been made to compare the relative importance of these sociopolitical factors in making investment decisions. Moreover, though the diverse nature of foreign direct investment (FDI) is widely noted, extant research relies almost exclusively upon the examination of aggregate FDI. As a result, scholars have little insight into the ways that investors prioritize these factors, or how they vary across different industries. In an effort to synthesize these strands of research and further deepen our understanding of the determinants of investment decisions, this study models the prospective impact of several sociopolitical variables that have been found to significantly influence FDI—human rights, democratic governance, and commitment to international trade agreements and investment treaties—across multiple investment sectors.