Countries can't just attract investment with strong institutions; firms from other nations bring their own standards. The study finds that multinational enterprises prioritize hosts similar to home in judicial independence and avoid those lacking it when home is independent. Using firm-level data, bilateral FDI positions, and longitudinal flow data, we show how countries' legal systems influence global business decisions.
| The Conditional Nature of Political Risk: How Home Institutions Influence the Location of Foreign Direct Investment was authored by Quintin Beazer and Daniel Blake. It was published by Wiley in AJPS in 2018. |
