The effects of terrorism on foreign direct investments: The case of OECD countries

Galović, Tomislav and Mišević, Petar and Balaž, Davorin (2024) The effects of terrorism on foreign direct investments: The case of OECD countries. ACTA OECONOMICA, 74 (3). pp. 427-443. ISSN 0001-6373

Text 032-article-p427.pdf Restricted to Repository staff only Download (914kB)

Abstract

This paper attempts to identify the determinants of foreign direct investment (FDI), focusing especially on terrorism and keeping in mind that FDI is one of the key economic growth engines. The main goal of this paper was to determine the correlation between terrorism and investment activities. The method used is a dynamic panel data model (System 2 step-GMM estimator), based on a sample covering a total of 36 OECD economies in the period from 2005 to 2018. The findings indicate that terrorist incidents and economic, institutional, and natural variables have different impacts on FDI in the OECD Member countries. The research found a statistically significant impact of terrorist incidents and natural disasters and a strong impact of economic and institutional variables.

Actions (login required)

Edit Item