Terrorist activities and capital flows of developed countries

Abstract

The main aim of this paper is to measure the consequences of terrorist activities on capital flows of the developed countries. Capital flows are interpreted as FDI inflows and outflows. The methodology is based on the dynamic panel data models (System-2 step-GMM estimator) using a sample of 36 developed countries all over the world from 2000 to 2016. The key results indicate that the terrorist incidents have different impact on capital flows of the developed countries compared to impacts of economic and institutional variables. All the variables used in the paper show the level of their impact on capital flows. The results indicate that terrorist activities weaken economic activity of a country, while minimising capital flows in certain situations. The recommendations and proposals are given based on the results of research.

International trade of the Eurasian Economic Union (EAEU)

“…ey indicate that the products in horizontal intra-industry trade are similar, while the vertical intra-industry trade consists of products with different levels of quality. Furthermore, several pieces of research of the factors that influence the success or failure of efforts to promote industrialisation and growth conclude that the growing level of intra-industry trade is highly significant (World Bank, 2018) 6 . e intra-industry trade brings additional benefits from international trade beyond those associated with comparative advantages.…”

Capital Inflows and Industrial Performance in Nigeria: Including the Excluded

“…This study was also guided by the availability of reliable data on aggregates of capital inflows and associative consequences. Capital inflows were measured employing foreign direct investment, official development assistance, portfolio investment, and remittances as used in the work of Edwards (1990); Calvo (1998); Reisen Galović, Bezić, and Mišević (2018). We relied on data from the World Bank Database (World Bank, 2017).…”

Utjecaj Terorističkih Napada Na Priljev Izravnih Stranih Ulaganja U Tranzicijskim Zemljama

“…Terorističke aktivnosti smanjuju sigurnost i povjerenje ulagača u zemlje izložene terorističkim aktivnostima, smanjujući priljev izravnih stranih ulaganja. S druge strane, troškovi protuterorističke sigurnosti opterećuju gospodarstvo i smanjuju gospodarski potencijal (Bezić et.al., 2016;Galović et al, 2018). Ekonomski učinci međunarodnog terorizma evidentni su kratkoročno i dugoročno.…”