Business, Management and Accounting
4 years ago

Democratic and federal countries attract higher levels of foreign investment

1 view
International Affairs and Global Strategy
Federalism, Democracy and Foreign Direct Investment Inflows: Are They Complementary or Competing Concepts?
Diriba Adugna, Tulu Attorney General

Paper Summary

Countries need foreign investment for growth. To attract investors, they must show they are safe and profitable. Investors prefer countries with democracy and federalism because they lower political risks. This means democratic and federal countries get more foreign investment.

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