| Titre : | Does Foreign Direct Investment Promote Political Stability ? Evidence from Developing Economies |
| Auteurs : | Assi Okara |
| Type de document : | Working Paper |
| Editeur : | Clermont-Ferrand : Centre d'études et de recherches sur le développement international (Cerdi), 2022-02 |
| Collection : | Working papers, num. Cerdi, 2022/02 |
| Format : | 46 p. |
| Langues: | Anglais |
| Catégories : |
[Eurovoc] ÉCONOMIE > situation économique > développement économique > pays en développement [Eurovoc] FINANCES > investissement et financement > investissement > investissement étranger [Eurovoc] VIE POLITIQUE > pouvoir exécutif et administration publique > exécutif > gouvernance [Eurovoc] VIE POLITIQUE > vie politique et sécurité publique > politique [JEL] H - Économie publique > H6 - Budget national, déficit et dette > H63 - Dette et gestion de la dette |
| Tags : | Greenfield FDI ; institutions ; political stability ; developing countries |
| Résumé : | This paper investigates the potential of Foreign Direct Investment (FDI) to counter socio-political instability, one of the most pressing challenges faced by developing countries. Socio-political (in)stability is approached from an institutional perspective and linked to one particular type of FDI, greenfield FDI, for its more direct socio-economic externalities and their influences on greed and grievance. The issue of causality is primarily addressed using a gravity-based instrumental variable for FDI, taking advantage of bilateral greenfield projects data. The empirical results using data over the period 2003-2017 for a large sample of developing countries show that FDI favors institutional development not only in terms of overall socio-political stability but also human rights compliant socio-political stability. The results are robust to a range of specifications and alternative identification strategies, as well as to a series of sensitivity tests. Overall, this study highlights the promotion of political stability as another channel through which FDI can contribute to development. |
| Axe de recherche : | Financement du développement |
| En ligne : | https://hal.archives-ouvertes.fr/hal-03617085 |
| Edition suivante : |
Documents numériques (1)
 https://hal.archives-ouvertes.fr/hal-03617085/file/WP_02_Okara_Assi.pdf URL |
