Partisan Investment in the Global Economy: Why the Left Loves Foreign Direct Investment and FDI Loves the Left

Partisan Investment in the Global Economy: Why the Left Loves Foreign Direct Investment and FDI Loves the Left

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Pablo M. Pinto
Cambridge University Press, 5/24/2013
EAN 9781107617360, ISBN10: 1107617367

Paperback, 308 pages, 22.8 x 15.2 x 1.6 cm
Language: English

Pinto develops a partisan theory of foreign direct investment (FDI) arguing that left-wing governments choose policies that allow easier entry by foreign investors more than right-wing governments, and that foreign investors prefer to invest in countries governed by the left. To reach this determination, the book derives the conditions under which investment flows should be expected to affect the relative demand for the services supplied by economic actors in host countries. Based on these expected distributive consequences, a political economy model of the regulation of FDI and changes in investment performance within countries and over time is developed. The theory is tested using both cross-national statistical analysis and two case studies exploring the development of the foreign investment regimes and their performance over the past century in Argentina and South Korea.

1. FDI and coalitions
2. The politics of investment
3. Partisanship and commitment
4. Cross-country analysis
5. FDI in Argentina
6. Business influence and FDI
7. Conclusion.

Advance praise: 'Pinto explores one of the key political questions asked of globalization: when and why would a government seek foreign direct investment? By providing analysts with a lucid and thorough examination of data on cross-country variation in both flows and regulation of FDI, Pinto shows how and why left-leaning parties are more likely to support FDI. This is a must-read book for scholars interested in economic development, globalization, and the politics of investment.' Judith Goldstein, Stanford University

Advance praise: 'In breaking with the commonly predicted expectation about the role of labor in attracting foreign investments, this book compels the attention of everyone working in political economy. It challenges us to think carefully about the linkages between partisanship, interest groups, political preferences, and policy outcomes. If you thought left-wing governments always repel foreign investments, you must read this book to find out the conditions in which the reverse is true, such that investment feels reassured by the support of labor in preventing nationalist blockage by outsiders. This is a vital book to all students of national and comparative political economy in its methodologically sophisticated way of exploring the linkages among domestic politics, interest groups, and policy outcomes. It challenges conventional wisdom with a strongly researched set of data to back up its claims.' Peter Gourevitch, University of California, San Diego

Advance praise: 'This book provides fresh insight into how domestic politics affects FDI. Pinto advances a highly original argument about the role of partisanship in shaping FDI and presents a battery of evidence to support his claims. The result is an important study that will be of interest to both economists and political scientists.' Edward Mansfield, University of Pennsylvania

Advance praise: 'Pinto presents a new, refreshing, and counterintuitive view of the politics of foreign direct investment. There's no doubt this will be seen as an exciting contribution to the literature.' David Stasavage, New York University