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The Impact of Terrorism on Foreign Direct Investment in Kenya

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  • Solomon Kinyanjui

Abstract

This paper assessed the relationship between terrorism and foreign direct investment in Kenya. Secondary data on the Terrorism attacks and FDI from 2010 to 2012 was used for the study. Multiple regression model was used to test of the relationship between the study variables. By applying the model, the study found that terrorism negatively affects FDI in Kenya. It was concluded that Terrorism activities negatively affect the FDI in Kenya. Terrorism activities decrease the foreign investor confidence, which decrease the FDI. The Null hypothesis that there is no relationship between terrorism and FDI was thus rejected.

Suggested Citation

  • Solomon Kinyanjui, 2014. "The Impact of Terrorism on Foreign Direct Investment in Kenya," International Journal of Business Administration, International Journal of Business Administration, Sciedu Press, vol. 5(3), pages 148-157, May.
    • Handle: RePEc:jfr:ijba11:v:5:y:2014:i:3:p:148-157
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    References listed on IDEAS

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    1. Bruno S. Frey & Simon Luechinger & Alois Stutzer, 2007. "Calculating Tragedy: Assessing The Costs Of Terrorism," Journal of Economic Surveys, Wiley Blackwell, vol. 21(1), pages 1-24, February.
    2. Walter Enders & Todd Sandler, 1996. "Terrorism and Foreign Direct Investment in Spain and Greece," Kyklos, Wiley Blackwell, vol. 49(3), pages 331-352, August.
    3. Drakos, Konstantinos, 2004. "Terrorism-induced structural shifts in financial risk: airline stocks in the aftermath of the September 11th terror attacks," European Journal of Political Economy, Elsevier, vol. 20(2), pages 435-446, June.
    4. Enders, Walter & Sandler, Todd, 1996. "Terrorism and Foreign Direct Investment in Spain and Greece," Kyklos, Wiley Blackwell, vol. 49(3), pages 331-352.
    5. Paul Collier & V. L. Elliott & Håvard Hegre & Anke Hoeffler & Marta Reynal-Querol & Nicholas Sambanis, 2003. "Breaking the Conflict Trap : Civil War and Development Policy," World Bank Publications - Books, The World Bank Group, number 13938, December.
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    Cited by:

    1. Syed Abdul Rehman KHAN & Zhang YU, 2020. "The Impact of Terrorism on Economics and Logistics Performance: An Empirical Study from the Perspective of SAARC Member States," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(4), pages 99-117, December.
    2. Hafiz Muhammad Abubakar Siddique & Rabia Liaqat & Kaleem Ullah, 2017. "Impact of Terrorism on Investment: Evidence from Pakistan," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 6(4), pages 195-199, December.
    3. Okafor, Luke Emeka & Hassan, M. Kabir & Rashid, Mamunur & Prabu, Darniya & Sabit, Ahmed, 2022. "Risk dimensions, risk clusters, and foreign direct investments in developing countries," International Review of Economics & Finance, Elsevier, vol. 82(C), pages 636-649.
    4. Metaxas, Theodore & Kechagia, Polyxeni, 2017. "FDI and Terrorism in developing Asia: Approaches and Discussion," MPRA Paper 78165, University Library of Munich, Germany.
    5. Polyxeni, Kechagia & Theodore, Metaxas, 2019. "An empirical investigation of FDI inflows in developing economies: Terrorism as a determinant factor," The Journal of Economic Asymmetries, Elsevier, vol. 20(C).

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