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FDI and Democratic Governance, Evidence from a Panel VAR Model
Unformatted Document Text:  FDI and Democracy, Evidence from a Panel VAR Model Feng Sun University of Alabama April 5, 2008 Abstract The author uses panel VAR model to explore the reciprocal and autoregressive relationship between FDI inflows from democratic countries and level of democracy in 122 less developed countries from 1970 to 2005. The result supports the hypothesis that FDI inflows from democratic countries promote democracy in developing countries. This paper has been prepared for presentation at 66 th annual meeting of the Midwest Political Science Association. Comments welcome. ## email not listed ## Please don’t cite without author’s permission. 1

Authors: Sun, Feng.
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FDI and Democracy, Evidence from a Panel VAR Model
Feng Sun
University of Alabama
April 5, 2008
Abstract
The author uses panel VAR model to explore the reciprocal and autoregressive
relationship between FDI inflows from democratic countries and level of democracy in
122 less developed countries from 1970 to 2005. The result supports the hypothesis that
FDI inflows from democratic countries promote democracy in developing countries.
This paper has been prepared for presentation at 66
th
annual meeting of the Midwest
Political Science Association. Comments welcome. ## email not listed ##
Please don’t cite without author’s permission.
1


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