Abstract
Most developing countries are trying to attract foreign direct investment (FDI) because the traditional sources of lending such as bank loans and multilateral aid has shrunk considerably. FDI has other advantages in terms of risk sharing and technology transfers. The role of political risk as a determining factor has not been analyzed extensively. Two proxies for political risk from new data sources are analyzed along with the traditional control variables. The results of the paper indicate that besides traditional variables, two factors that influence FDI flows are: the openness of the economy and the degree of political risk.
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Singh, H. (2000). Role of Political Violence in Foreign Direct Investment Decisions. In: Zanakis, S.H., Doukidis, G., Zopounidis, C. (eds) Decision Making: Recent Developments and Worldwide Applications. Applied Optimization, vol 45. Springer, Boston, MA. https://doi.org/10.1007/978-1-4757-4919-9_6
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