Terrorism and Foreign Direct Investment in Spain and Greece
Walter Enders () and
Todd Sandler ()
Kyklos, 1996, vol. 49, issue 3, 331-52
This paper puts forward a time-series methodology for quantifying the impact that terrorist incidents have had on net foreign direct investment. For Spain, a transfer function is used for quantification purposes, while, for Greece, a VAR model is employed. Terrorism had a significant and persistent negative impact on net foreign direct investment--a year's worth of terrorism discouraged net foreign direct investment by 13.5 percent annually in Spain and by 11.9 percent annually in Greece. The cumulative effect on foreign-held capital is indicated. It shows that smaller countries that face a persistent threat of terrorism may incur economic costs in the form of reduced investment and growth. Copyright 1996 by WWZ and Helbing & Lichtenhahn Verlag AG
References: Add references at CitEc
Citations View citations in EconPapers (85) Track citations by RSS feed
There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:bla:kyklos:v:49:y:1996:i:3:p:331-52
Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0023-5962
Access Statistics for this article
Kyklos is currently edited by Rene L. Frey
More articles in Kyklos from Wiley Blackwell
Series data maintained by Wiley-Blackwell Digital Licensing ().