Economic reform, state capture, and international investment in transition economies

Nathan M. Jensen

35 citations0/0 files storedJournal of International Development

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International Business and FDI Corruption and Economic Development Post-Communist Economic and Political Transition

Abstract

Abstract The inflows of foreign direct investment (FDI) in transition economies are affected by political factors. This paper examines the empirical effects of two factors: (i) the level of economic reform; and (ii) the level of ‘capture’ of the state by political and economic elites, on the level of FDI inflows using both OLS and Tobit models for 18 countries from 1993–97. Both of these factors have large and statistically significant effects on FDI inflows. Copyright © 2002 John Wiley & Sons, Ltd.

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References

1997How Taxing is Corruption on International Investors?1995The Boundaries of Multinational Enterprises and the Theory of International Trade 1998Winners Take All: The Politics of Partial Reform in Postcommunist Transitions 2000Seize the State, Seize the Day: State Capture, Corruption, and Influence in Transition 1996Foreign direct investment in economic transition: the changing pattern of investments 1995Foreign direct investment in the early years of economic transition: a survey

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