The effects of foreign direct investment on democracy: A comparative analysis of Argentina and Turkey

This dissertation explores the relation between Foreign Direct Investment (FDI) and the level of democracy in Turkey and Argentina in between the years 1980-2000. It has three aims; first to revisit the political effects of FDI. Second to examine the development of FDI in Turkey and Argentina and third to compare and contrast the two countries in regard of the FDI they received and FDI?s political effects.This dissertation argues that not all types of FDI facilitate the level of democracy in developing world. The political effects of FDI depend on the sector, type of FDI as well as the development level of the source country and the absorption capacity of the host country.Looking at Argentina and Turkey, it was found out that in both of the countries with the beginning of liberalization and the arrival of FDI, the economy grew and life standards of the citizens improved resulting in the improvement of the democracy. But, this period made both of the countries dependent to external sources and fragile to external shocks resulting in economic and political crisis with heavy burdens on the lives of the citizens.