Political affinity, multilateralism, and foreign direct investment worldwide

IF 5.4 2区 经济学 Q1 BUSINESS, FINANCE
Wenlian Lin , Jerry Cao , Sili Zhou , Yong Li
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引用次数: 0

Abstract

We investigate the relationship between political affinity and foreign direct investment (FDI) from the perspective of bilateral relations extending to multilateralism. The bilateral analysis shows that a host country can attract more FDI from a home country with which it has high political affinity. Furthermore, we shed new light on the role of multilateralism and find that multilateral diplomacy helps mitigate the effect of bilateral political affinity on FDI through dialog and consultation based on common interests. Finally, we show that a host country’s institutional quality moderates the relationship between political affinity and FDI. Our analysis highlights the importance of multilateralism in the era of political polarization and deglobalization, which threaten the development of international investment.

全球政治亲和力、多边主义和外国直接投资
我们从双边关系延伸到多边主义的角度研究了政治亲和力与外国直接投资(FDI)之间的关系。双边分析表明,东道国可以从政治亲和力高的母国吸引更多的外国直接投资。此外,我们还对多边主义的作用进行了新的阐释,发现多边外交有助于通过基于共同利益的对话和磋商,缓解双边政治亲和力对外国直接投资的影响。最后,我们发现东道国的制度质量可以调节政治亲和力与外国直接投资之间的关系。我们的分析凸显了多边主义在政治两极分化和去全球化时代的重要性,而政治两极分化和去全球化威胁着国际投资的发展。
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来源期刊
CiteScore
6.60
自引率
10.00%
发文量
142
期刊介绍: International trade, financing and investments, and the related cash and credit transactions, have grown at an extremely rapid pace in recent years. The international monetary system has continued to evolve to accommodate the need for foreign-currency denominated transactions and in the process has provided opportunities for its ongoing observation and study. The purpose of the Journal of International Financial Markets, Institutions & Money is to publish rigorous, original articles dealing with the international aspects of financial markets, institutions and money. Theoretical/conceptual and empirical papers providing meaningful insights into the subject areas will be considered. The following topic areas, although not exhaustive, are representative of the coverage in this Journal. • International financial markets • International securities markets • Foreign exchange markets • Eurocurrency markets • International syndications • Term structures of Eurocurrency rates • Determination of exchange rates • Information, speculation and parity • Forward rates and swaps • International payment mechanisms • International commercial banking; • International investment banking • Central bank intervention • International monetary systems • Balance of payments.
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