Social development and foreign direct investments in developing countries
Timeframe: Jan 2002 -
Funder: World Bank
This CMI study confirmed that social development issues play a relatively marginal role in influencing the investment climate and the level of foreign direct investment (FDI) in developing countries. Long term stability and reduced internal conflict and tension are nevertheless positive factors for investment levels. Contrary to previous studies, the CMI report indicates that improved political rights, civil liberties and democratisation had a positive impact on FDI during the 1990s. The study was commissioned by the World Bank.