Journal Articles
Do Electoral Rules Matter?: Political Institutions and Foreign Direct Investment in Latin America
Despite the growing importance of domestic institutions in the political economy literature, few studies explore the effects of disaggregated measures of political institutions, specifically electoral rules and systems, on foreign direct investment (FDI). Building on institutional accounts, this articles tests the effects of electoral rules on FDI inflows for 16 Latin American countries from 1978 to 2000. Using panel data and controlling for common explanations in the FDI literature, the authors find that candidate-centered electoral systems increase political access for voters and industries supportive of FDI inflows. The results show the benefits of unpacking political institutions to explain FDI inflows, paving the way for many new research avenues.
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