Political governance, civil liberties and human capital: Evaluating their effect on Foreign Direct Investment in emerging and developing economies

Fragkiskos Filippaios, Fatima Annan-Diab, Amir Hermidas, Charikleia Theodoraki

Research output: Contribution to journalArticlepeer-review

30 Citations (Scopus)


We study the influence of a country?s political governance on its attractiveness to foreign direct investors. We argue that democracy is not a unidimensional concept and that the effect of host country political governance on incoming Foreign Direct Investment (FDI) differs depending on whether FDI originates from a democratic or an autocratic country. We also hypothesize that the effect of civil liberties depends on the motivations of investing Multinational Enterprises (MNEs) and that human capital moderates this relationship. We test our hypotheses on a sample of 35,000 investments in emerging and developing countries between 2003 and 2013.
Original languageEnglish
Pages (from-to)1103-1129
Number of pages27
JournalJournal of International Business Studies
Issue number7
Early online date20 May 2019
Publication statusPublished - 1 Sep 2019


  • Political governance
  • civil liberties
  • human capital
  • foreign direct investment
  • investment motivations

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