Foreign Direct Investment under Uncertainty: Evidence from a Large Panel of Countries

Caroline Jardet (), Cristina Jude and Menzie Chinn

No 29687, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We examine the effect of uncertainty on foreign direct investment inflows for a heterogeneous sample of advanced, emerging market and developing countries over a 25 year long (pre-Covid) sample. Using a push-pull framework, and controlling for both global and local factors, we find policy uncertainty has discernable and significant effects on inflows, but those effects vary in strength and direction between different groups of countries. Moreover, it is not host country uncertainty that seems to matter the most, but rather global uncertainty. Additionally, we find that high levels of uncertainty matter disproportionately. Finally, financial openness accentuates the impact of uncertainty for emerging market and developing countries.

JEL-codes: F21 F4 (search for similar items in EconPapers)
Date: 2022-01
New Economics Papers: this item is included in nep-cwa, nep-fdg, nep-ifn, nep-int and nep-opm
Note: IFM
References: Add references at CitEc
Citations: View citations in EconPapers (7)

Published as Caroline Jardet & Cristina Jude & Menzie Chinn, 2023. "Foreign direct investment under uncertainty evidence from a large panel of countries," Review of International Economics, vol 31(3), pages 854-885.

Downloads: (external link)
http://www.nber.org/papers/w29687.pdf (application/pdf)

Related works:
Journal Article: Foreign direct investment under uncertainty evidence from a large panel of countries (2023)
Working Paper: Foreign direct investment under uncertainty evidence from a large panel of countries (2023)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:nbr:nberwo:29687

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w29687

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().