A Comment on Kellogg's Analysis

An American specialist on the Soviet and Russian military-industrial complex examines the economic, social and political tensions within one of the most important, closed nuclear cities in Russia. Based on an intensive examination of the city's daily newspaper, not heretofore available in the West, the author explores the implications of the current situation for prospective nuclear accidents or proliferation. Journal of Economic Literature, Classification Numbers: P29, R58, O18.     

The Conditional Nature of Political Risk: How Home Institutions Influence the Location of Foreign Direct Investment

What determines whether countries' institutions attract or deter investment? Although existing theories predict that multinational enterprises (MNEs) avoid locations where institutions cannot constrain public and private actors' opportunistic behavior, we argue host institutions' attractiveness depends on firms' home environment. Home country institutions shape firms' practices and capabilities, thus helping to determine the environments that firms are best prepared to face abroad. We test our predictions using multiple data sets at different levels of analysis: firm‐level data on MNEs' foreign subsidiaries, data on bilateral foreign direct investment (FDI) positions, and longitudinal data on bilateral FDI flows. We find that states with independent judiciaries are particularly attractive to investment from countries also possessing independent courts. Similarly, countries with low judicial independence disproportionately send FDI to countries lacking independent judiciaries. These findings' implications challenge conventional wisdom: “Good” institutions may not attract all investors, and “bad” institutions may not always deter, as current research suggests.     

Der Europ?ische Gerichtshof als Motor der Integration: Eine akteursbezogene Erkl?rung

For nearly five decades, the European Court of Justice (ECJ) has developed a decisively pro-European case law and has become the ??engine of integration??. Institutional explanations shed light on the Court??s room for manoevre. They have to be complemented by actor-centered explanations that shed light on the judges?? motives of action. The explanation offered by the following paper is unfolded in two steps. In the first one, the article describes idiosyncrasies of the European law discourse that already shaped the judges before they were appointed. The analysis of the idiosyncrasies corresponds to a scepticism towards the idea of national sovereignty, a belief in the necessity of creative and idealist, law-augmenting judges and a dominance of output-oriented legitimization strategies. In a second step, the article shows that in the sociological sense the ECJ judges constitute a group. While the individual judges share an understanding of the aims and functions of European law, the group develops its own identity and grants status to those who perform successful actions with respect to the common integration agenda. This explanation is more realistic than ??rational choice?? explanations which point to the direct and personal benefits that judges derive from their pro-European case law.