The effect of political risk on foreign direct investment

Janaćković, Marko; Janaćković, Tanja

doi:10.5937/ekonsig1902015x

Cited by 2 publications

(1 citation statement)

References 3 publications

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“…Finally, in this study, there is a negative relationship between political stability and the level of FDI in developing countries. The influence of political stability is also a negative relationship, as shown in the study of Janaćković & Janaćković (2019), which supports this study. The correlation has shown that corruption is the most common intermediate.…”

Section: Summary Of the Findingssupporting

confidence: 89%

Impacts of Political Risk and Macroeconomics Factors Towards Foreign Direct Investment in Developing Countries

Mohamad

Othman

Tarmizi

et al. 2023

IJFEB

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This study examines the relationship between macroeconomic factors and foreign direct investment (FDI) inflows in developing countries. The data from the World Bank covers 21 years, from 2000 to 2020 was analyzed using the panel regression approach with E-Views. Panel regression analysis, including model selections and diagnostics, is used for inferential analysis. The main contribution of this study is the influence of political factors on FDI inflows. Political stability and corruption control are technically the most important conditions for FDI inflows in developing countries and were introduced in this study. This study found a positive relationship between GDP growth rate, imports, inflation, and corruption index with FDI inflow, confirmed by previous studies. The study also implies that the exchange rate, exports, and political stability have a negative relationship with the level of FDI in developing countries. In addition, the study found that GDP growth rate, imports, and exports significantly impact FDI inflows in developing countries, while the other variables are not significant. In other words, this result shows that macroeconomic and political factors such as import, export, exchange rate, corruption control, and political stability impact FDI inflows. Moreover, this paper provides policy recommendations to support developing countries' economies by attracting FDI and increasing its inflow.

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Section: Summary Of the Findingssupporting

confidence: 89%

Impacts of Political Risk and Macroeconomics Factors Towards Foreign Direct Investment in Developing Countries

Mohamad

Othman

Tarmizi

et al. 2023

IJFEB

View full text Add to dashboard Cite

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The impact of selected socio-economic factors on defense expenditures in Southeastern European countries

Šare

2024

Ekon: teor praks

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This research explores the influence of certain socioeconomic factors on defense expenditures in Southeastern European countries. The research was conducted for the period from 2005 to 2021. The aim of the research is to examine the impact of political stability, budgetary allocations for education, and revenues from taxes on goods and services, as independent variables, on defense expenditures as a dependent variable using the STATA software package. By applying the chosen model, the extent to which variations in defense expenditures can be explained by the independent variables used in the model was determined. The conclusion of the research is that the variables used in the model have a significant impact on defense expenditures and provide insight into the complex interactions between social and economic factors and defense expenditures in Southeastern European countries.

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The effect of political risk on foreign direct investment

Cited by 2 publications

References 3 publications

Impacts of Political Risk and Macroeconomics Factors Towards Foreign Direct Investment in Developing Countries

Impacts of Political Risk and Macroeconomics Factors Towards Foreign Direct Investment in Developing Countries

The impact of selected socio-economic factors on defense expenditures in Southeastern European countries

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