Political Party Tenure and MNE Location Choices

We develop a theoretical framework to explain how political party tenure affects MNE entries. We leverage insights from the upper echelon and public administration literatures to argue that there is a curvilinear relationship between political party tenure and MNE entries. Moreover, we argue that political parties with an excessive tenure are less responsive to MNEs and more corrupt. Therefore, we further explain the mediating effects of government bureaucratic responsiveness and government corruption on that relationship. We test our theory using a sample of manufacturing MNEs entering into Mexican cities. The results support our theory