Integrated Model to Measure the Impact of Terrorism and Political Stability on FDI Inflows: Empirical Study of Pakistan

Rauf, Sundas; Mehmood, Rashid; Rauf, Aisha; Mehmood, Shafaqat

doi:10.5539/ijef.v8n4p1

Cited by 9 publications

(9 citation statements)

References 9 publications

(5 reference statements)

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“…Results show that the given political risk scores positively and significantly affect FDI flows. However, this result is inconsistent with Rauf et al's (2016) findings where the study stated that political stability affects FDI positively. However, in this study, political scores are low, so political scores coefficients in model 1 and 6 should have been with a negative sign.…”

Section: Discussioncontrasting

confidence: 97%

“…Which conforms to Kok and Ersoy (2009) but contradicts with Paudel (2016). Moreover, a research conducted by Rauf et al (2016) examines the effect of political outlook and terrorism and their study determines that GDP, political stability and trade openness positively influence FDI flows and also determines that terrorism has a substantial influence on FDI flows to a host country. Furthermore, Researchers like Hogan, Lipton & Olson (2015), Al-Khouri (2015), and Click (2005) agrees that the main determinant of FDI is country risk.…”

Section: Foreign Direct Investmentmentioning

confidence: 99%

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The Effect of country risk on foreign direct investment: Evidence from Egypt

Salem

Younis

2021

المجلة العلمیة للإقتصاد و التجارة

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This paper examines the effect of country risk on Foreign Direct Investment (FDI) in Egypt during the years 2005-2015. We employ multiple regression analysis, to test the relationship among the selected variables that drive foreign direct investment flows to Egypt. FDI has always been an interesting topic for research; nevertheless, to the authors' knowledge, the impact of country risk on FDI has not been examined before in Egypt. Since FDI is a notable source of foreign currency income to the Egyptian economy, it becomes inevitable to study the variables that affect the flow of FDI in relevance to the economic outlook in general and country risk in specific. The effect of country risk on FDI could significantly affect economic measurements such as economic growth and required rate of return. Our results show that economic risk measurements have the most significant impact on foreign direct investments inflows to Egypt, while financial risk measurements have no significance. Moreover, political risk is associated with foreign direct investment.

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Section: Discussioncontrasting

confidence: 97%

Section: Foreign Direct Investmentmentioning

confidence: 99%

The Effect of country risk on foreign direct investment: Evidence from Egypt

Salem

Younis

2021

المجلة العلمیة للإقتصاد و التجارة

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“…Ref. [36], in the Pakistan case, showed that terrorism has a negative, yet insignificant influence on FDI. Ref.…”

Section: State-of-the-art: Relationship Between Terrorism and Fdimentioning

confidence: 99%

Terrorism as a Determinant of Attracting FDI in Tourism: Panel Analysis

Radić

2018

Sustainability

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The aim of this paper is to investigate whether terrorism is one of the important determinants affecting the investment decisions of foreign investors in tourism on a panel of 50 countries over the period 2000 to 2016. In addition to terrorism, the importance of three other theoretically significant determinants of attracting foreign direct investment (FDI) in tourism are explored—the previous level of FDI in tourism, the level of GDP and the international tourist arrivals. To obtain more reliable research results, the initial model is extended with certain control variables. The study uses system-GMM estimator for dynamic panel data models. The research results of a narrower and a wider model indicate that terrorism has no significant effect on the FDI inflow in tourism while international tourist arrivals significantly affect the future FDI in tourism in both models. Furthermore, the research results entail certain political connotations. In order to attract foreign investors in tourism, the most important factor is to ensure a stable macroeconomic environment with a competitive position in the Doing Business list and what better business conditions. Attention should also be focused on the security and preventive counter-terrorism, which will ensure that potential destinations reflect confidence, have a growth rate of tourist arrivals and, consequently, attract foreign investors.

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“…Further political instability and economic freedom as it is observed in developing countries can further inhibit the recovery from terrorism . This is further exacerbated by limited FDI (Alomar and El-Sakka, 2011;Rauf et al, 2016), exporting activity, investment and limited foreign aid (Asongu and Kodila-Tedika, 2017). Further bibliometric studies focussing only on developing countries could identify the research trends and themes guided by these issues, allowing for a deeper understanding.…”

Section: Mapping Terrorismmentioning

confidence: 99%

Mapping terrorism in the academic landscape of business field of study: a bibliometric study of the past 30 years

Klona

Menzies

Zutshi

2021

IJCMA

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Purpose Terrorism is as old as humanity itself, but its new form in the twenty-first century is adversely affecting the performance of businesses in both developing and developed countries. The purpose of this study is to identify and analyse the evolution and diffusion of academic knowledge on the topic of terrorism in business-related literature. Design/methodology/approach Data was gathered from two databases, namely, the Scopus and Web of Science over 30 years (1990–2019). The search terms related to terrorism in titles, abstracts and authors’ keywords, which resulted in a total of 1,097 articles. Bibliometric methods, including a thematic and content analysis identifying main themes and using Gephi and VOSviewer software, were used to analyse the data. Findings The results reveal the productivity of the main actors, current thematic choices and future research opportunities. The main thematic areas of the research arising from the bibliometric analysis included the impact of terrorism on economic growth, Foreign Direct Investment, tourism, stock market reforms, security of multinational corporations as a result of terrorism and finally, the impact of political instability and terrorism on business. This study’s findings may guide the research of future academics and assist policy stakeholders in their strategic choices related to future business development. Research limitations/implications The study has certain limitations that are inherent to the bibliometric methods or to the choices related to data collection and processing. Practical implications This study recognised evolution and trends regarding the influence of terrorism on businesses, which is crucial information for the development of business and policy strategies in the future. These strategies should enhance the ability of businesses to cope with the negative effects of terrorism and make these effects less devastating. For academics, this study provides relevant insights on recent research trends in the field of terrorism in business and emerging future academic thematic opportunities. Social implications The findings of the study indicate that issues of terrorism in business have broader social implications, which both academia and policy stakeholders can attend with their work. Originality/value This bibliometric review offers new insights into terrorism from the business lens by identifying the common streams of research in the field, along with the key journals, articles, countries, institutions, authors, data sources and networks in this field. The future research directions in this field of knowledge are also articulated in the study.

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Integrated Model to Measure the Impact of Terrorism and Political Stability on FDI Inflows: Empirical Study of Pakistan

Cited by 9 publications

References 9 publications

The Effect of country risk on foreign direct investment: Evidence from Egypt

The Effect of country risk on foreign direct investment: Evidence from Egypt

Terrorism as a Determinant of Attracting FDI in Tourism: Panel Analysis

Mapping terrorism in the academic landscape of business field of study: a bibliometric study of the past 30 years

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