All Academic, Inc. Research Logo

Info/CitationFAQResearchAll Academic Inc.
Document

FDI and Democratic Governance, Evidence from a Panel VAR Model
Unformatted Document Text:  between these two endogenous variables in a panel vector autoregressive model with 122 less developed countries from 1970 to 2005. I propose that FDI from democratic countries spread democratic ideas and encourage political liberalization in the less developed countries. The paper proceeds as follows: The next section briefly reviews the studies on globalization and democratization and examines the literature about the effect of globalization on democracy. The following section discusses the linkage between Foreign Direct Investment and domestic democratic development. The methodology issues are presented in section IV. The last section shows the empirical results and wraps up the paper. Literature review The effect of Globalization on Democracy Globalization and democratization are two phenomenal world-wide trends in the modern human history. Although they almost prevailed in the world simultaneously and had similar rhythms, the possible nexus between these two trends receives little attention in the early research. The attentions of scholars focused on the economic effect of globalization in the early year. The most controversial part of globalization is foreign direct investment in developing countries. Debates between neo-liberalists and dependency and world-system theorists occupied the early study of the effect of FDI. The proponents of FDI argue that FDI contribute to the growth of the economy in developing countries due to its technology spillover, stimulating infrastructure development, boosting the productivity of domestic firms, increasing the human capital, decreasing poverty and benefiting the local 4

Authors: Sun, Feng.
first   previous   Page 4 of 21   next   last



background image
between these two endogenous variables in a panel vector autoregressive model with 122
less developed countries from 1970 to 2005. I propose that FDI from democratic
countries spread democratic ideas and encourage political liberalization in the less
developed countries.
The paper proceeds as follows: The next section briefly reviews the studies on
globalization and democratization and examines the literature about the effect of
globalization on democracy. The following section discusses the linkage between Foreign
Direct Investment and domestic democratic development. The methodology issues are
presented in section IV. The last section shows the empirical results and wraps up the
paper.
Literature review
The effect of Globalization on Democracy
Globalization and democratization are two phenomenal world-wide trends in the
modern human history. Although they almost prevailed in the world simultaneously and
had similar rhythms, the possible nexus between these two trends receives little attention
in the early research.
The attentions of scholars focused on the economic effect of globalization in the
early year. The most controversial part of globalization is foreign direct investment in
developing countries. Debates between neo-liberalists and dependency and world-system
theorists occupied the early study of the effect of FDI. The proponents of FDI argue that
FDI contribute to the growth of the economy in developing countries due to its
technology spillover, stimulating infrastructure development, boosting the productivity of
domestic firms, increasing the human capital, decreasing poverty and benefiting the local
4


Convention
Need a solution for abstract management? All Academic can help! Contact us today to find out how our system can help your annual meeting.
Submission - Custom fields, multiple submission types, tracks, audio visual, multiple upload formats, automatic conversion to pdf.
Review - Peer Review, Bulk reviewer assignment, bulk emails, ranking, z-score statistics, and multiple worksheets!
Reports - Many standard and custom reports generated while you wait. Print programs with participant indexes, event grids, and more!
Scheduling - Flexible and convenient grid scheduling within rooms and buildings. Conflict checking and advanced filtering.
Communication - Bulk email tools to help your administrators send reminders and responses. Use form letters, a message center, and much more!
Management - Search tools, duplicate people management, editing tools, submission transfers, many tools to manage a variety of conference management headaches!
Click here for more information.

first   previous   Page 4 of 21   next   last

©2012 All Academic, Inc.