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Foreign Direct Investment and Political Risk in Pacific Rim

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Author Info

  • Mehdi Behname

    ()
    (Department of Economics of Ferdowsi University of Mashhad (FUM))

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.

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Bibliographic Info

Article provided by Institute of Economic Sciences in its journal Economic Analysis.

Volume (Year): 45 (2012)
Issue (Month): 1-2 ()
Pages: 74-80

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Handle: RePEc:ibg:eajour:v:45:y:2012:i:1-2:p:74-80

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Keywords: Pacific Rim; foreign direct investment; political risk;

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