Foreign Direct Investment and Political Risk in Pacific Rim

Mehdi Behname

Economic Analysis, 2012, vol. 45, issue 1-2, 74-80

Abstract: The main purpose of this article is to study the effect of political risk on foreign direct investment in the Pacific Rim. The considered time period is from 1984 to 2008. In this study, 12 indexes of political risk offered by Political Risk Services Group have been used. After studying the stationarity of variables by Im-Pesaran Shin test, the benchmark model is estimated for 12 political risks and we come to the conclusion that the risks of Corruption, External Conflict, Internal Conflict, Investment Profile, and Military in Politics have significant effect on FDI.

Keywords: Pacific Rim; foreign direct investment; political risk (search for similar items in EconPapers)
JEL-codes: C31 C33 F21 F23 (search for similar items in EconPapers)
Date: 2012
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Persistent link: https://EconPapers.repec.org/RePEc:ibg:eajour:v:45:y:2012:i:1-2:p:74-80

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