Foreign Direct Investment Democracy And Development

The author of this essay argues that foreign direct investment (FDI) is beneficial to democracy, and that globalization has a positive effect on economic development. The author also suggests that policy makers should focus on encouraging globalization in order to increase economic growth rates and promote democracy.

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 internationalization by focusing on the impact of foreign direct investment (FDI) and democracy on economic development, and the effects of economic internationalization 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.