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Promoting socio-political stability through Foreign Direct Investment
[Promouvoir la stabilité socio-politique à travers l’investissement direct étranger]

Author

Listed:
  • Assi Okara

    (BAD - Banque africaine de développement / African Development Bank, CERDI - Centre d'Études et de Recherches sur le Développement International - IRD - Institut de Recherche pour le Développement - CNRS - Centre National de la Recherche Scientifique - UCA - Université Clermont Auvergne)

Abstract

The growing importance of FDI flows to developing countries has implications for their institutional environment as (i) foreign investors do not always adapt to the local environment, (ii) FDI has induced institutional reforms in countries competing to attract them, and (iii) the socioeconomic effects of FDI can trigger institutional changes. The latter argument is what the paper mainly explores in positing that by generating economic opportunities, FDI promotes political stability. The results clearly align with this argument. Accounting for political repression, the findings also highlight that FDI-induced stability is compatible with governmental respect for human rights.

Suggested Citation

  • Assi Okara, 2023. "Promoting socio-political stability through Foreign Direct Investment [Promouvoir la stabilité socio-politique à travers l’investissement direct étranger]," Post-Print hal-04123967, HAL.
    • Handle: RePEc:hal:journl:hal-04123967
    DOI: 10.1016/j.econmod.2023.106249)
    Note: View the original document on HAL open archive server: https://hal.science/hal-04123967
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    Keywords

    Institutions; Political stability; Developing countries; IDE; Institution; Greenfield FDI; Stabilité politique; Pays en développement;
    All these keywords.

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