Reforms and Political Instability in Attracting Foreign Direct Investment: A simoultaneous equations approach

Author(s):  
Javier Barbero ◽  
Walter Morales ◽  
Fernando Ubeda

Significance Parliament's failure last month to enact the promised transition to proportional representation sparked demonstrations in Tbilisi and other cities. The ruling Georgian Dream-Democratic Georgia party's immediate position seems safe, but it will have to reckon with signs that a more confident, determined and united opposition is emerging out of the previously diffuse political landscape. Impacts A bout of political instability would reduce the inflow of foreign direct investment. Russia's instinct to exploit turmoil will be curbed by its reluctance to see the opposition win. To address one area of discontent, the government may unblock the Anaklia port project.


2015 ◽  
Vol 5 (2) ◽  
pp. 24 ◽  
Author(s):  
Lateef Ademola Olatunji ◽  
Muhammad Sadiq Shahid

<p>Although it may seem natural to argue that foreign direct investment (FDI) can convey great advantages to host countries. This paper finds that FDI flows to Sub-Saharan Africa economies unaffected by conflict and political instability exceed those with crisis. For FDI to strive in these countries, it must introduce sound economic policies and make the country investor friendly. There must be political stability, sound economic management and well developed infrastructure.</p>


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