Foreign Direct Investment and Political Preferences in Non-Democratic Regimes

Abstract

How does economic globalization affect regime support in non-democratic regimes? While we know a lot about how globalization affects politics in democracies, we know only little about its impact on political preferences in autocracies. I focus on FDI, which has increased considerably over the last decades and affects low- and high-skilled individuals differently. Material risks associated with FDI decrease regime support only among the poorly educated; economic gains from FDI bolster support for the incumbent regime for well-educated individuals. I present two analyses that corroborate these hypotheses. Study 1 uses Afrobarometer data and matches respondents with geo-located data on FDI. To mitigate selection problems, I only compare individuals that are exposed to FDI with individuals that are not yet exposed at the time the survey was administered. Study 2 utilizes cross-national survey data from 14 autocracies. My findings explain why some citizens favor the political status quo, even in autocracies.