IDEAS home Printed from https://ideas.repec.org/a/ces/ifosdt/v68y2015i11p22-32.html
   My bibliography  Save this article

Country Risk and Foreign Direct Investment

Author

Listed:
  • Tobias Lieb
  • Erdal Yalcin

Abstract

From the point of view of investing firms, a special challenge related to cross-border investments are the long-term economic conditions in the respective target countries: namely legal, political and economic stability. These factors are mostly summarized in the form of country risk. Developing and emerging economies have significant potential on the one hand, but are also characterised by relatively high risk on the other. Between 1989 and 2011 the majority of German direct investment flowed into countries that were less at risk. The statistics available also confirm that manufacturers like, for example, in the automotive industry, are investing in strongly growing economies.

Suggested Citation

  • Tobias Lieb & Erdal Yalcin, 2015. "Country Risk and Foreign Direct Investment," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 68(11), pages 22-32, June.
    • Handle: RePEc:ces:ifosdt:v:68:y:2015:i:11:p:22-32
    as

    Download full text from publisher

    File URL: https://www.ifo.de/DocDL/ifosd_2015_11_4.pdf
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Gabriel Felbermayr & Erdal Yalcin, 2016. "Involvement of German Companies in Africa," ifo Forschungsberichte, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 71.

    More about this item

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

    Statistics

    Access and download statistics

    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:ces:ifosdt:v:68:y:2015:i:11:p:22-32. 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: Klaus Wohlrabe (email available below). General contact details of provider: https://edirc.repec.org/data/ifooode.html .

    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.