Foreign Investment and Political Regimes: The Oil Sector in Azerbaijan, Russia, and Norway

Foreign Investment and Political Regimes: The Oil Sector in Azerbaijan, Russia, and Norway

by Oksan Bayulgen
     
 

ISBN-10: 0521425883

ISBN-13: 9780521425889

Pub. Date: 01/29/2010

Publisher: Cambridge University Press

Political democratization and economic globalization have been two of the most important global trends of the past few decades. But, how are they connected? Do the domestic political institutions affect a country’s attractiveness to foreign investors? Can countries that democratize attract relatively more foreign investments? Drawing on three in-depth case

Overview

Political democratization and economic globalization have been two of the most important global trends of the past few decades. But, how are they connected? Do the domestic political institutions affect a country’s attractiveness to foreign investors? Can countries that democratize attract relatively more foreign investments? Drawing on three in-depth case studies of oil-rich countries and statistical analyses of 132 countries over three decades, Oksan Bayulgen demonstrates that the link between democratization and FDI is nonlinear. Both authoritarian regimes and consolidated democracies have institutional capabilities that, though different, are attractive to foreign investors. Democracies can provide long-term stability, and authoritarian regimes can offer considerable flexibility. The regimes that have started on the road to democracy, but have not yet completed it, tend to have political institutions that provide neither flexibility nor stability. These hybrid regimes, then, also find it relatively more difficult to construct a policy environment that is attractive to foreign investments. These findings have deep implications for the link between democratization and globalization, but also how globalization may affect political, social, and economic development.

Product Details

ISBN-13:
9780521425889
Publisher:
Cambridge University Press
Publication date:
01/29/2010
Pages:
290
Product dimensions:
6.00(w) x 9.10(h) x 1.10(d)

Table of Contents

1. Introduction; 2. Political risks in oil investments: a history of antagonistic interdependence; 3. With or without democracy?: the political economy of FDI; 4. Curse or blessing?: effects of FDI on development; 5. Azerbaijan: one-stop shopping; 6. Russia: two-steps forward, one-step back; 7. Norway: icon of stability; 8. Beyond three cases and oil; 9. Conclusion.

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