IDEAS home Printed from https://ideas.repec.org/a/ase/jtsrta/v26y2019i2p113-124id249.html
   My bibliography  Save this article

Investor Confidence and Asymmetric Effects of Terrorism - A case of Pakistan

Author

Listed:
  • Rukhsana Kalim
  • Iqra Faiz
  • Noman Arshed

Abstract

Foreign Direct Investment plugs the investment saving gap and a source for transfer of technology and productivity. The major reason for the flow of investment across borders is the difference in the rate of return. But the catch is that foreign investors are more risk averse as compared to the local investors. Investor confidence is sensitive to economic conditions especially like terrorist events which cause capital flight. This study tests the asymmetry in effects of terrorism on FDI, showing that in short run terrorism leads to increase in FDI, later on, it decreases the FDI and it is the time period where asymmetry between the effects of increasing and decreasing FDI occurs. While in long run, the effect of an increase and decrease in terrorism tend to become almost equal and opposite. This indicates that Pakistan needs to be patient as it will take more time to regain investor confidence.

Suggested Citation

  • Rukhsana Kalim & Iqra Faiz & Noman Arshed, 2019. "Investor Confidence and Asymmetric Effects of Terrorism - A case of Pakistan," Journal Transition Studies Review, Transition Academia Press, vol. 26(2), pages 113-124.
    • Handle: RePEc:ase:jtsrta:v:26:y:2019:i:2:p:113-124:id:249
    as

    Download full text from publisher

    File URL: https://transitionacademiapress.org/jtsr/article/view/249/184
    Download Restriction: Access to full texts is restricted to Journal Transition Studies Review
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ase:jtsrta:v:26:y:2019:i:2:p:113-124:id:249. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Giorgio Dominese (email available below). General contact details of provider: https://transitionacademiapress.org/jtsr/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.