How Do Geopolitical Risks Affect Government Investment? An Empirical Investigation
Mehmet Bilgin,
Giray Gözgör and
Gokhan Karabulut
Defence and Peace Economics, 2020, vol. 31, issue 5, 550-564
Abstract:
The paper examines the effects of geopolitical risks, measured by a new index for geopolitical risk, on general government investment (gross fixed capital formation). It uses panel data for 18 countries for the period from 1985 to 2015. Using panel fixed-effects and the corrected least squares dummy variable estimators, results indicate that geopolitical risks seem to exert a positive effect on government investment.
Date: 2020
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DOI: 10.1080/10242694.2018.1513620
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