Nation-States and the Multinational Corporation: A Political Economy of Foreign Direct Investment » (New Edition)

Nathan M. Jensen is assistant professor of political science at Washington University in St. Louis.

"With this book, Nathan Jensen offers new and exciting research on the political economy of foreign direct investment (FDI). Rich both in theory and in empirical evidence, this excellent work has far-reaching implications for political science and economics alike. Jensen argues that FDI does not simply go to countries with low taxes, but rather to countries with specific political institutions that provide credible commitments to secure investments. Beyond this contribution, he also explores more generally the impacts of democracy and international institutions on FDI."--James Raymond Vreeland, Yale University, author of The IMF and Economic Development

"Jensen systematically analyzes the relationship between foreign direct investment and political institutions, using statistical as well as interview evidence. The book's central argument is innovative: it is credibility, not taxation, that matters to multinational firms. Jensen's work should interest policy makers as well as scholars of economic globalization."--Layna Mosley, University of North Carolina, Chapel Hill

Stephen J. Kobrin - Perspectives on Politics

Nathan Jensen has written an interesting, empirically grounded, and provocative book.... It is a serious effort to think about and test the impact of political institutions on multinational firms and flows of foreign direct investment.... This is worthwhile reading for anyone interested in the political economy of FDI.

List of Illustrations     ix
Preface     xi
List of Abbreviations     xv
Introduction     1
Multinational Firms and Domestic Governments     23
Theory     40
The Race to the Bottom Thesis and FDI     53
Democracy and FDI     72
Veto Players and FDI     100
The IMF and FDI Inflows     129
Conclusion     146
Notes     157
References     167
Index     185