Foreign Direct Investment
Intr
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This research paper investigates whether the political style of nations has an impact on drawing foreign direct investment (FDI). A review of literature was conducted and research findings suggested that there is a relationship between mechanisms of government and foreign investment. This study sought to investigate these variables. The following questions guided the research: 1. Is there a difference between groups representing free nations, partially free nations, and not free nations regarding political rights and civil liberties? 2. Do political rights and civil liberties predict foreign direct investment? The hypotheses for the study are as follows: Hypothesis 1. Free nations will draw more FDI than non-free nations. Hypothesis 2. Higher levels of political rights and civil liberties will result in higher levels of FDI. Archival research was used to examine the variables for this study. Political rights and civil liberties were operationally defined by the Freedom in the World survey used to gather data for this study. The Foreign Direct Investment database was also used to gather data. ANOVA was used to test the first hypothesis and regression analysis was used to test the second hypothesis. Following this, conclusions are presented. 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) obtaini
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FDI from 1990 through 1994 and as of 2001, received $17.7 billion in FDI. Asia, in contrast, received an average of $33.5 billion in FDI between 1990 and 1994 and $91.4 billion in 2001 (down from $128.2 billion in 2000). The developing countries of Europe experienced an increase in FDI from $4.4 billion in 1990 to $31.2 billion in 2001. The IMF (2003) also noted that Western hemispheric developing countries increased their share of FDI from $15.7 billion in 1990 to $69.5 billion in 2001 (down from the 1999 peak of $88.0 billion).
Methods
Archival research was used for this study. Archival research includes the collecting and reviewing of data that already exists in a natural setting such as government research documents. This information is reviewed with the purpose of testing a hypothesis or answering a research question. This method is useful when there is reliable information already available that can be used to study a problem. Archival research is a nonexperimental design. Although an experimental design allows for the control over variables and threats to validity, and the nonexperimental design does not, both yield empirical results. Empirical research includes the collection of data and the analysis of the
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Some common words found in the essay are:
Freedom World, Methods Archival, Makki Somwaru, Fund IMF, , King Bear, De Soysa, Globerman Shapiro, FDI Ramamurti, Development UNCTAD, direct investment, foreign direct, foreign direct investment, developing countries, political rights, civil liberties, freedom world, political rights civil, rights civil liberties, rights civil, fdi flows, fdi inflows, archival research, conference trade development, united nations conference,
Approximate Word count = 2534
Approximate Pages = 10 (250 words per page)
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