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The Effects Of Terrorist Attacks On Foreign Direct Investments Inflows In Transition Countries

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  • Tomislav Galović

    (Sveučilište u Rijeci, Ekonomski fakultet, Ivana Filipovića 4, 51000 Rijeka, Republika Hrvatska)

Abstract

The main aim of the paper is to empirically measure the impact of terrorism and other institutional, economic and natural factors on the foreign direct investment inward stock of transition economies. The methodology applies the two-step system GMM estimator in a dynamic panel analysis covering 16 countries from 2000 to 2016. The results confirm that terrorist incidents as well as economic and institutional variables affect inward FDI stock in transition economies. Institutional variables, especially government effectiveness and control of corruption, recorded the most significant impact. The paper therefore sheds light on the international competitiveness of transition countries with respect to terrorism-related and other model variables influencing FDI.

Suggested Citation

  • Tomislav Galović, 2019. "The Effects Of Terrorist Attacks On Foreign Direct Investments Inflows In Transition Countries," Poslovna izvrsnost-Business Excellence, University of Zagreb Faculty of Economics & Business, vol. 13(2), pages 111-127.
  • Handle: RePEc:zag:busexc:v:13:y:2019:i:2:p:111-127
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