Can money break glass? FDI and the Political Glass Ceiling Ruth Whittaker and Alyson Matthews

Question Does an increase in Foreign Direct Investment affect women’s parliamentary participation in developing nations? yes, but the returns are not linear. We look at the way foreign direct investment inflows affect women’s parliamentary participation. We focus on developing countries because FDI likely has the greatest economic impact on women’s equality in these nations. We theorize that there is a curvilinear, or s-shaped, relationship between our two variables. Women’s parliamentary participation increases, decreases, and increases again as FDI inflows increase.

Why Curvilinear? A look at past literature Eastin and Prakash (2013) “Is There a Gender Kuznets Curve?” What is a Kuznets Curve? Three Stage approach Eastin and Prakash look at income increases and women’s equality on a broad scale. They find a Kuznets curve shape as income grows, women having varying levels of equality. The original Kuznets curve was simply a u-shape and looked at economic growth and income inequality. We extend these two studies to look at FDI specifically and women’s parliamentary participation to isolate the interaction between the two terms. We also add a reason for the changes in representation- globalization.

Explaining our theory First Stage of FDI: introduction of foreign cultural values and economic opportunities for women Second Stage FDI: retreat of foreign influence and backlash from traditionalists Third Stage of FDI: R&D brings foreign norms back and the brightest of society push for political reform First Stage of FDI: MNCs invest in primary industries such as agriculture or natural resource acquisition which requires close contact with locals. As a result, western norms are introduced. Women, who are given greater opportunities, take advantage of new opportunities out of the home and run for parliament. Second Stage of FDI: manufacturing is the main economic activity in this level of investment. As a result, firms employ locals to run factories, which reduces the host-nation’s exposure to western values. Additionally, manufacturing as an industry limits women’s economic participation. This return of traditionalist values pushes back and reduces women’s political gains Third stage of FDI: tech innovation and R&D are the most expensive forms of FDI and require firms to train the brightest of societies in western nations so that they can then go back to host countries and implement their innovations. This leads to cultural reformation because new leaders want the rights they were used to in western nations.

Data and Methods Y=β1 x1 + β2 x12 + β3x13 Women in parliament FDI World Bank World Development Indicators 1990-2014 146 developing countries OLS, Tobit, and Fixed Effects Y=β1 x1 + β2 x12 + β3x13 Controls: Democracy, conflict, GDP per capita, Islam, Trade, Manufacturing,

Model 1 (OLS) Model 2 (Tobit) Model 3 (Fixed Effects) Female Parliamentary Participation (No Controls) (All Controls) Female Parliamentary Participation (No Controls) Female Parliamentary Participation (All Controls) FDI 0.376*** 0.533*** 0.329*** 0.464*** 0.219*** 0.340*** (4.27) (4.67) (4.46) (5.23) (3.95) (5.55) FDI² -0.017*** -0.021*** -0.014*** -0.016*** -0.00848*** -0.0130*** (-3.95) (-3/74) (-3.77) (-3.55) (-3.40) (-4.63) FDI³ 0.000144*** 0.000161** 0.000114** 0.000116** 0.0000680** 0.0000968*** (3.36) (3.07) (2.98) (2.61) (2.74) (3.58)

Threshold hold in OLS: 15%, 69% Tobit: 18%, 74%

Implications for the Future Globalization is complicated Look at regional patterns Closer examination of gender norms