Political Risk, Democratic Institutions, and Foreign Direct Investment

  title={Political Risk, Democratic Institutions, and Foreign Direct Investment},
  author={Nathan M. Jensen},
  journal={The Journal of Politics},
  pages={1040 - 1052}
There is a renewed interest in how political risk affects multinational corporations operating in emerging markets. Much of this research has focused on the relationship between democratic institutions and flows of foreign direct investment (FDI). Yet the existing studies suffer from data problems that only allow for indirect evidence of the relationship between political institutions and political risk. In this paper I utilize price data from political risk insurance agencies to directly test… 

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