Globalization, Freedom, and Foreign Direct Investment:
Overview of Study Methodology 10 Definitions of Terms 10
Overview of the Study 54 Design of the Study 54 Sample Population 55 Instrumentation 55 Procedures for Data Collection 58
1 LAC: Economy Distribution of FDI Inflows 42
2 Asia and the Pacific: Economy Distribution of FDI Inflows 44
3 Africa: Country Distribution of FDI Inflows 46
1 Top 10 Recipients of FDI Inflows in LAC 43
2 Top 10 Recipients of FDI Inflows in Asia 45
3 Top 10 Recipients of FDI Inflows in Africa 47
This research paper investigates whether the political style of nations has an impact on drawing foreign direct investment (FDI). Specifically the study assesses the impact of political rights and civil liberties on FDI flow in free nations, partially free nations, and not free nations.
A review of the literature has revealed the possibility that there is a relationship between the political style of nations and FDI flow implying the need for empirical research to investigate this issue. A study was needed to assess the impact of political rights and civil liberties on FDI flow, comparing free nations, partially free nations, and not free nations.
The International Monetary Fund (IMF) (2003) defines foreign direct investment (FDI) as a category of international investment reflecting the objective of a resident in one economy (the direct investor) obtaining a lasting interest in an enterprise resident in another economy (the direct investment enterprise). The lasting interest implies that a long-term relationship between the parties is desirable and that there will be a significant degree of influence by the investor on the management of the enterprise. A direct investment relationship is established when the direct investor acquires 10 percent or more of the ordinary shares or voting power of an enterprise abroad.
In recent decades, relations between mul...