Journal of Finance and Investment Analysis

Democracy, Authoritarianism and the Inflow of Foreign Direct Investments: A Critical Examination of a Debate and its Associated Consequences for Social Science Research

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• Abstract

  Are debates of value to social science research? To what extent has the debate on the preconditions and determinants of foreign direct investments (FDI) helped in the understanding of the totality of the forces, factors and processes of international capitalism? How do the knowledge of the preconditions and determinants present themselves as the knowledge of the debate on how best to attract and stimulate FDI? To what degree/extent do regimes necessarily influence and shape the determinants and preconditions of FDI attraction and stimulation? How can the research on the preconditions and determinants of FDI be designed in such a way and manner that the purpose of scholarship is best served? What are the associated consequences of the choice and technique of the research design? The article attempts a review of the significant initiatives that give meaning to the debate on the affinities of FDI to either democracy or authoritarianism and presents the debate within the intellectual foundation stones of the understanding and grasp of international political economy. The method of data collection is qualitative and scattered in the diverse sources of information on the subject of study. The objective is to contribute meaningfully to the understanding of the debate and chart future directions of research.