Autocracy, Democracy and FDI inflows in Asian Developing Countries

The study examines the effect of autocracy and democracy on FDI inflows in Asian developing countries from 1990-2010. Using multiple regression analysis the study found the positive and significant effect of autocracy on FDI inflows in the selected range of countries while democracy statistically shows negative and significant effect on FDI inflows. Among controlling variables market capitalization, population, literacy rate, sea access and trade shows significant and positive effect on FDI inflows in both models while imports and exports shows insignificant results with autocracy.