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Comparative Political Studies
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Do Electoral Rules Matter?

Political Institutions and Foreign Direct Investment in Latin America

Marshall W. Garland

Texas Tech University, Lubbock

Glen Biglaiser

Texas Tech University, Lubbock

Despite the growing importance of domestic institutions in the political economy literature, few studies explore the effects of disaggregated measures of political institutions, specifically electoral rules and systems, on foreign direct investment (FDI). Building on institutional accounts, this articles tests the effects of electoral rules on FDI inflows for 16 Latin American countries from 1978 to 2000. Using panel data and controlling for common explanations in the FDI literature, the authors find that candidate-centered electoral systems increase political access for voters and industries supportive of FDI inflows. The results show the benefits of unpacking political institutions to explain FDI inflows, paving the way for many new research avenues.

Key Words: electoral institutions • foreign direct investment • Latin America • district magnitude • collective action • candidate-centered systems

This version was published on February 1, 2009

Comparative Political Studies, Vol. 42, No. 2, 224-251 (2009)
DOI: 10.1177/0010414008325434
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