Journal article
Democracy, Regional Market Integration, and Foreign Direct Investment: Lessons from Costa Rica
Business & society, v 38(4), pp 450-473
Dec 1999
Abstract
Regional integration over the past decade has facilitated a huge flow of foreign direct investment (FDI) into Latin America. Less is known, however, about why these newforeign enterprises decided to enter specific markets. This study investigates three recent investments in Costa Rica: two by U.S.-based multinational corporations (MNCs) and another by an MNC based in Spain. The behavior of these MNCs is examined in their initial bargaining and subsequent operations. Through the lens of political economy, this study concludes that Costa Rica’s stable democratic institutions and formalized economic links through multilateral and regional trade and investment accords constitute an advanced factor of comparative advantage that attracted foreign investment to Costa Rica and induced the MNCs to become responsive to host country interests.
Metrics
1 Record Views
8 citations in Scopus
Details
- Title
- Democracy, Regional Market Integration, and Foreign Direct Investment
- Creators
- Douglas A. SchulerDavid S. Brown - Rice University
- Publication Details
- Business & society, v 38(4), pp 450-473
- Publisher
- Sage
- Number of pages
- 24
- Resource Type
- Journal article
- Language
- English
- Academic Unit
- College of Arts and Sciences; Politics
- Scopus ID
- 2-s2.0-26444443814
- Other Identifier
- 991021903890304721