We study the influence of a country’s political governance on its attractiveness to foreign direct
investors. We argue that democracy is not a unidimensional concept and that the effect of host country
political governance on incoming Foreign Direct Investment (FDI) differs depending on whether FDI
originates from a democratic or an autocratic country. We also hypothesize that the effect of civil
liberties depends on the motivations of investing Multinational Enterprises (MNEs) and that human
capital moderates this relationship. We test our hypotheses on a sample of 35,000 investments in
emerging and developing countries between 2003 and 2013