Political Risk and the Institutional Environment for Foreign Direct Investment in Latin America: An Empirical Analysis with a Case Study on Mexico
ISBN: 9783631753644
Platform/Publisher: JSTOR / Peter Lang AG
Digital rights: Users: unlimited; Printing: chapter; Download: chapter
Subjects: Economics ; Political Science;

The intensification of capital flows is an important characteristic of globalization. Attracting foreign direct investment is a viable way of ensuring the external financing of developing countries. Foreign direct investment flows, in turn, are determined by the decisions of multinational enterprises. One important determinant of investment decisions is the political environment of potential host countries. Political risks like expropriations, riots, revolutions or civil wars are important obstacles for investment. This book empirically analyzes the impact of political risks on foreign direct investment flows to Latin American countries. A case study of Mexico and its policy towards foreign investors offers further empirical evidence for the importance of the political environment for investment decisions of multinationals.

The Author: Jörg Stosberg studied Law and Economics in Münster and Paris. After graduating he worked as a researcher at the University of Göttingen where he received his Ph.D. in Economics. In 2004 he joined the Federal Foreign Office and currently works for the German Ministry of Finance in Berlin.

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