THE RELATIONSHIP BETWEEN POLITICAL SYSTEMS and FOREIGN DIRECT INVESTMENTS
POLİTİK SİSTEMLER ve DOĞRUDAN YABANCI SERMAYE YATIRIMLARI ARASINDAKİ İLİŞKİ

Author : F. Merve PARLAKYILDIZ -- E. Alper GÜVEL
Number of pages : 386-407

Abstract

In this study, we aimed to investigate socio-political variables that determine the Foreign Direct Investments (FDI). In this context, it analyzed the impact of the political systems representing the countries’ polity, political instability and economic freedom level on FDI. Middle-income countries were examined with panel data analysis in the 1998-2012 period. First it examined whether the political system index value had an effect on FDI. Later, it examined whether the country's democratic, autocratic or hybrid regime had an effect on FDI. The results indicate that political system index had no effect on FDI. But democratic regime had positive effect on FDI. Also it observed that political instability had negative and economic freedom level had no effect on FDI.

Keywords

FDI, Political Systems, Panel Data Analysis

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