Foreign Direct Investment, Democracy and Development: Assessing Contours, Correlates and Concomitants of Globalization (Routledge Advances Ininternational Political Economy, 8)

The effects of globalization on economy and society are highly contested subjects in academic and political arenas. This study brings an empirical perspective to the crucially important arguments that encapsulate the major debates in this area. Using quantitative data, this book addresses the shape and degree of internationalisation by focussing on the impact of Foreign Direct Investment (FDI) and democracy on economic development and the effects of economic internationalisation on democracy. The author examines democracy's effects on economic growth and considers the claim that foreign capital has a detrimental effect on democracy to show that FDI in fact plays a supporting role for democracy and creates higher growth rates than domestic capital. From these results the author suggests that policy makers should seek to encourage globalization by ensuring open access to products from poorer countries, encouraging private investment within poorer countries and that such countries should concentrate on building up human and institutional capital to attract investment. Book Cover......Page 1 Title......Page 4 Copyright......Page 5 Dedication......Page 6 Contents......Page 8 Figures......Page 10 Tables......Page 12 Acknowledgments......Page 14 Abbreviations......Page 16 Introduction......Page 18 1 The contours of globalization......Page 24 2 Globalization and development......Page 40 3 Globalization and growth empirics......Page 63 4 Democracy and growth......Page 84 5 Empirics of democracy and growth, and growth of democracy......Page 113 6 Assessing globalization’s correlates and concomitants......Page 132 Data appendix......Page 140 Notes......Page 144 Bibliography......Page 150 Index......Page 166