The Conditions Under Which Political Disruption Results in Increased Political R
The Conditions Under Which Political Disruption Results in Increased Political R
Stephen Jay Kobrin
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conditions under which political disruption results In Increased political TABLE 3 REGRESSION ON LOG MFDI VARIABLE/ MKT Growth XP TAR EU S. A. ASIA Beta . 34 . 39 . 30 -. 09 . 17 . 18 -. 14 T Statistic 6, 30 15. 29 5. 15 . 86 2. 35 2. 26 1. 32 R^ = . 65 F(7/40) = 10. 61 •28- risk; in constraints imposed upon foreign enterprise. The model posits that disruption which places pressure on the government for remedial action^ and is based upon economic discontent will result in constraints if the reg...ime has the capacity to develop and impose such constraints on firms. Further- more, given the countries included in the study, we posit that disruption would be more likely to be economically motivated at higher levels of development. Thus, we would expect relationships between the residual or unexplained variation in manufacturing FDI (UNEX hereafter) to be a function of, (1) the nature of the disruption and (2) "level" of socio-economic de- velopment and the effectiveness of output institutions.
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