Search

Begin New Search Publishing Institution Arnold A. Saltzman Institute of War and Peace Studies Author Pablo M. Pinto

1. Fortune or Evil? The Effects of Inward Foreign Direct Investment on Corruption

Author:
Pablo M. Pinto and Boliang Zhu
Publication Date:
12-2008
Content Type:
Working Paper
Institution:
Arnold A. Saltzman Institute of War and Peace Studies
Abstract:
This paper analyzes the relationship between inward foreign direct investment (FDI) and grand corruption in host countries. We argue that the effects of FDI on government corruption are conditional on the host country's underlying economic and political climate: FDI will be associated with higher corruption levels in political and economic environments where competition is restriced. We adopt an empirical strategy aimed at dealing with the underlying endogeneity problem. We construct an instrument for inward FDI based on a measure of remoteness. We test our hypotheses on the conditional effects of FDI on corruption in an instrumental variable two-stage least-squares setting, finding preliminary support for our argument: the effect of FDI on corruption is positive in authoritarian and poor countries, and turns negative as countries develop and become more democratic. We also find that the marginal effect of FDI on corruption in democratic and rich countries is smaller.
Topic:
Corruption, Development, International Political Economy, and International Trade and Finance

2. The Individual Sources of Economic Nationalism: Evidence From Survey Data

Author:
Pablo M. Pinto and Carmen M. Le Foulon
Publication Date:
12-2007
Content Type:
Working Paper
Institution:
Arnold A. Saltzman Institute of War and Peace Studies
Abstract:
Political leaders in troubled democracies around the world have resorted to an anti-foreign rhetoric to justify the adoption of policies restricting foreign imports, and the free flow of capital and people, allegedly in defense of the national interest. And this rhetoric has resonated positively with large sectors of the electorate in those countries. A similar trend, exploiting a nationalistic sentiment for economic purposes, is observed in campaigns in the United States to buy American. Most studies to date have analyzed the causes and consequences of economic nationalism at the state level. However, there is good reason to believe that sources of economic nationalism should be traced at the individual level: some individuals might be willing to embrace economic nationalism purely on self-interest, yet others will be forced to trade off material and ideational preferences in order to support the national industry. The existence of this tradeoff at the individual level has important implications for coalition formation on trade, investment and migration policy-making. While recent studies suggest that cultural and ideational interests are likely to influence individual attitudes towards trade, one of the central policy dimensions in economic nationalism, the empirical content of the tradeoff between material and non-material preferences remains untested to date. Using data from the International Social Survey Program (ISSP 2003) we explore whether the effect of nationalism on attitudes towards protectionism varies with the individual's position in the economy. We find preliminary evidence that nationalism systematically affects attitudes towards trade in the United States, but less so in the Philippines. We also find that the effect of nationalism is conditional on individuals' skill, or position in the economy.
Topic:
Economics, Nationalism, and Culture
Political Geography:
United States

Refine your search