DO POLITICAL RISKS AFFECT THE FOREIGN DIRECT INVESTMENT INFLOWS TO HOST COUNTRIES?
Abstract
When the investors decide to make a foreign direct investment, they take various factors into consideration such as political risk. In the study that covers the years 2002-2012 and data from 91 countries, the impact of political risk on foreign direct investment has been demonstrated by conducting panel data analysis. Political risk and control variables have been used. An increase in “political stability and absence of violence” and “management effectiveness” has reduced the foreign direct investment. Moreover, a rise in the variables of the “exportation of goods and services”, “population”, “GDP growth”, “regulatory quality” has increased the foreign direct investment.
Keywords
Details
Primary Language
English
Subjects
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Journal Section
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Publication Date
June 30, 2016
Submission Date
April 20, 2016
Acceptance Date
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Published in Issue
Year 2016 Volume: 5 Number: 2