Year 2020, Volume 9 , Issue 4, Pages 2430 - 2446 2020-10-13

The Nexus between Political Risks and Foreign Direct Investment: An Empirical Analysis for North African Countries
Politik Risk ve Doğrudan Yabancı Yatırım Arasındaki İlişki: Kuzey Afrika Ülkeleri İçin Ampirik Bir Analiz

Cüneyt ÖZŞAHİN [1] , Şerife ÖZŞAHİN [2]


Drawing from the ICRG data set, this study aims to analyze the intricate linkage between political risks and foreign direct investment via a number of control variables including trade openness, the consumer price index and per capita GDP.  Since there has been a paucity of research on certain determinants of FDI in the North African context, we examine the impact of political risks on foreign direct investment inflows in six North African countries covering the period 1996-2014 accounting for the presence of possible cross- sectional dependence in the heterogeneous panel data. Whereas the results obtained from Pedroni (1999) and Johansen-Fisher co-integration tests show that there is a long-run co- integration relationship, coefficients obtained from the FM-OLS estimator indicate that a low level of political risks has a positive impact on the foreign direct investment inflows, albeit with some variation within select countries. The Canning and Pedroni (2008) causality test, on the other hand, finds evidence that there is a causal relationship between political risks and foreign direct investment for four countries (Algeria, Libya, Tunisia, and Egypt) in the sample. Hence, the results suggest that political risks are significant determinants of foreign direct investment for an array of countries in North Africa.
Bu çalışma, politik risk ve doğrudan yabancı yatırım girişleri arasındaki ilişkiyi dışa açıklık oranı, tüketici fiyat endeksi ve kişibaşı GSYH gibi bazı kontrol değişkenlerin yardımıyla tespit etmeyi amaçlamaktadır. Kuzey Afrika ülkelerinde doğrudan yabancı yatırımların belirleyicileri üzerine az sayıda çalışma yapılmış olması nedeniyle 6 Kuzey Afrika ülkesine 1996-2014 döneminde gelen doğrudan yabancı yatırımlar üzerinde politik risklerin etkisi, yatay kesit bağımlılığı ve heterojen panel yapısı dikkate alınarak incelenmiştir. Pedroni (1999) ve Johansen-Fisher eşbütünleşme testleri ile uzun dönemde değişkenler arasında ilişki olduğu belirlenmiştir. FMOLS tahmincisi ile elde edilen sonuçlar ülke bazında farklılık gösterse de düşük düzeyde politik riskin doğrudan yabancı yatırım girişleri üzerinde pozitif etkisi olduğunu göstermiştir. Canning ve Pedroni (2008) nedensellik testine göre 4 ülkede (Cezayir, Libya, Tunus ve Mısır) politik risk ve doğrudan yabancı yatırım girişleri arasında nedensellik ilişkisi tespit edilmiştir. Bu doğrultuda ilgili ülkelerde politik riskin doğrudan yabancı yatırımların önemli bir belirleyicisi olduğu ifade edilebilir.
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Primary Language en
Subjects Social
Journal Section Research Article
Authors

Orcid: 0000-0002-3445-5412
Author: Cüneyt ÖZŞAHİN (Primary Author)
Institution: NECMETTİN ERBAKAN ÜNİVERSİTESİ
Country: Turkey


Orcid: 0000-0001-8310-1816
Author: Şerife ÖZŞAHİN
Institution: NECMETTİN ERBAKAN ÜNİVERSİTESİ
Country: Turkey


Thanks Acknowledgement: An earlier version of this paper is presented at 6th International Conference on Social Thought and Theory in the MENA Region conference on December 14-15, 2017, Nicosia, Northern Cyprus. We are grateful to colleagues in the audience for offering insightful questions and comments.
Dates

Application Date : June 13, 2020
Acceptance Date : July 27, 2020
Publication Date : October 13, 2020

Bibtex @research article { mjss752412, journal = {MANAS Sosyal Araştırmalar Dergisi}, issn = {1694-7215}, address = {Chyngyz Aytmatov Campus, 720038, Djal, Bishkek, KYRGYZSTAN}, publisher = {Kyrgyz-Turkish Manas University}, year = {2020}, volume = {9}, pages = {2430 - 2446}, doi = {10.33206/mjss.752412}, title = {The Nexus between Political Risks and Foreign Direct Investment: An Empirical Analysis for North African Countries}, key = {cite}, author = {Özşahi̇n, Cüneyt and Özşahi̇n, Şerife} }
APA Özşahi̇n, C , Özşahi̇n, Ş . (2020). The Nexus between Political Risks and Foreign Direct Investment: An Empirical Analysis for North African Countries . MANAS Sosyal Araştırmalar Dergisi , 9 (4) , 2430-2446 . DOI: 10.33206/mjss.752412
MLA Özşahi̇n, C , Özşahi̇n, Ş . "The Nexus between Political Risks and Foreign Direct Investment: An Empirical Analysis for North African Countries" . MANAS Sosyal Araştırmalar Dergisi 9 (2020 ): 2430-2446 <https://dergipark.org.tr/en/pub/mjss/issue/57186/752412>
Chicago Özşahi̇n, C , Özşahi̇n, Ş . "The Nexus between Political Risks and Foreign Direct Investment: An Empirical Analysis for North African Countries". MANAS Sosyal Araştırmalar Dergisi 9 (2020 ): 2430-2446
RIS TY - JOUR T1 - The Nexus between Political Risks and Foreign Direct Investment: An Empirical Analysis for North African Countries AU - Cüneyt Özşahi̇n , Şerife Özşahi̇n Y1 - 2020 PY - 2020 N1 - doi: 10.33206/mjss.752412 DO - 10.33206/mjss.752412 T2 - MANAS Sosyal Araştırmalar Dergisi JF - Journal JO - JOR SP - 2430 EP - 2446 VL - 9 IS - 4 SN - 1694-7215- M3 - doi: 10.33206/mjss.752412 UR - https://doi.org/10.33206/mjss.752412 Y2 - 2020 ER -
EndNote %0 MANAS Sosyal Araştırmalar Dergisi The Nexus between Political Risks and Foreign Direct Investment: An Empirical Analysis for North African Countries %A Cüneyt Özşahi̇n , Şerife Özşahi̇n %T The Nexus between Political Risks and Foreign Direct Investment: An Empirical Analysis for North African Countries %D 2020 %J MANAS Sosyal Araştırmalar Dergisi %P 1694-7215- %V 9 %N 4 %R doi: 10.33206/mjss.752412 %U 10.33206/mjss.752412
ISNAD Özşahi̇n, Cüneyt , Özşahi̇n, Şerife . "The Nexus between Political Risks and Foreign Direct Investment: An Empirical Analysis for North African Countries". MANAS Sosyal Araştırmalar Dergisi 9 / 4 (October 2020): 2430-2446 . https://doi.org/10.33206/mjss.752412
AMA Özşahi̇n C , Özşahi̇n Ş . The Nexus between Political Risks and Foreign Direct Investment: An Empirical Analysis for North African Countries. MJSS. 2020; 9(4): 2430-2446.
Vancouver Özşahi̇n C , Özşahi̇n Ş . The Nexus between Political Risks and Foreign Direct Investment: An Empirical Analysis for North African Countries. MANAS Sosyal Araştırmalar Dergisi. 2020; 9(4): 2430-2446.