scholarly journals A Novel Measure of Political Risk and Foreign Direct Investment Inflows

2021 ◽  
Vol 14 (10) ◽  
pp. 482
Author(s):  
Pavel Jeutang ◽  
Kwabena Kesse
Keyword(s):  
Risk Measure ◽  
Political Risk ◽  
Political Stability ◽  
Country Risk ◽  
The Political ◽  
Foreign Direct Investments ◽  
Fdi Inflows ◽  
Risk Rating ◽  
Incremental Information ◽  
Highly Correlated

This paper proposes a novel measure of political risk that confirms some of the findings documented in the Foreign Direct Investments (FDI) literature. Particularly, we confirm the positive relationship between political stability and its components on FDI inflows, and the moderating effect of natural resources on this relationship. The proposed political risk measure contains relevant, unique and incremental information not observed in the literature. For example, although this measure is highly correlated with the political risk rating of the International Country Risk Guide (ICRG), it contains unique information that explains FDI inflows beyond what is explained by the ICRG rating. A link to the database for our political risk rating for 150 countries covering 2000 to 2015 has been provided.

scholarly journals Does Polarized Political Environment Hamper Foreign Investors? The Evidence from Parliamentary Democracies

2020 ◽  
Vol 67 (1) ◽  
pp. 45-73
Author(s):  
Nino Kokashvili ◽  
Irakli Barbakadze
Keyword(s):  
Fixed Effects ◽  
Political Stability ◽  
Political Polarization ◽  
The Political ◽  
Fixed Effects Model ◽  
Fdi Inflows ◽  
Parliamentary Democracies ◽  
Development Indicators ◽  
Party Polarization ◽  
Separate Dimension

The socio-political characteristics of the host environment influence investment decisions. The complexity of the political setup strengthens the need for advanced research in the field. The main contribution of this article is to identify the party polarization as a separate dimension of the political system. This paper examines the relationship between the foreign direct investment (FDI) inflows and the host country political factors: the party polarization and the political stability. Besides constructing the political polarization index in a traditional way, authors also formulate a novel measure, which explicitly shows the divergence of political parties on economic actions. By using the manifesto data of 50 parliamentary democracies based on fixed effects model, authors conclude that political polarization is an important socio-political factor which has been previously neglected in literature while addressing the determinants of foreign investments. The paper shows that the effect of political polarization on FDI inflows changes for country groups of different institutional and development indicators. Authors underline the importance of political instability in tackling the polarization impact on capital flows. Accounting together the two variables, the authors find a negative significant effect on FDI.

The effect of sustainability on foreign direct investment inflows: evidence from developing countries

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Neha Singh ◽  
Cheshta Kapuria
Keyword(s):  
Information Technology ◽  
Developing Countries ◽  
Electricity Consumption ◽  
Political Stability ◽  
Foreign Direct Investments ◽  
International Telecommunication Union ◽  
Fdi Inflows ◽  
Content Type ◽  
Four Dimensions ◽  
Using Data

Purpose This paper aims to analyse, the issue concerning the quality of inward foreign direct investments (FDI) by empirically investigating the role of four sustainability determinants of FDI, namely, economic, environmental, social and governance using data from 22 developing countries of the Asian region over a period from 2000–2016. Design/methodology/approach The methodology adopted to achieve this purpose is dynamic panel estimation (two-step difference generalised method of moments) by developing three econometric models. The data is sourced from the World Development, Worldwide Governance Indicators, International Telecommunication Union and the United Nations Conference on Trade and Development. Findings The econometric results indicate that, in general, control of corruption, political stability and electricity consumption influence sustainable FDI favourably; and CO2 emissions lower the extent of sustainable FDI. The result underlines deficiencies in the information technology aspect, which has a non-significant yet positive relationship with sustainable FDI. A pertinent finding of this study is that the past value of FDI inflows increases the current year’s FDI inflows in developing countries. Practical implications The findings related to gender and information technology aspects found in this paper will be of interest to both researchers and policymakers for substantially reorienting the sustainability attributes to foreign investment. Originality/value The authors’ main contributions are to encapsulate the conceptual framework into an empirical model by combining all the four dimensions, namely, environmental, economic, social and governance for developing countries.

scholarly journals Evaluation of institutional grounding for Russian investments to basic industries of Nepal

2020 ◽  
Vol 12 (4) ◽  
pp. 455-465
Author(s):  
Sh. Mishra ◽  
A. M. Zobov ◽  
E. A. Fedorenko
Keyword(s):  
South Asia ◽  
Political Stability ◽  
Good Choice ◽  
Diplomatic Relation ◽  
The Political ◽  
Foreign Direct Investments ◽  
Economic Relation ◽  
Economic Relations

This article is developed to understand the Russian investment in Nepal. Since these days due to the western section it is necessary for Russia to expand its economic relations to others continent and Asia is a best part to expand its investment. As there are some countries already tie with Russia in economic connection from South Asia like India, Pakistan but with Nepal and Russia had more on diplomatic relation. Thus it is very good choice to look and increase for economic relation for Russia with Nepal. The author has highlighted institution determinant of Foreign Direct Investments (FDI) to attract investment in Nepal because these days the political stability has become better in Nepal. The author also found the industries to invest in Nepal for Russia however there are some investment existed already by Russia. The author has recommended to the investors to invest in some specific industries without any hesitation as Nepal is facilitation for investment attraction and also its institution condition is becoming better.

The Tribal Impact on Political Stability in Sudan

2018 ◽  
Vol 11 (1-2) ◽  
pp. 167-188
Author(s):  
Abdu Mukhtar Musa
Keyword(s):  
Urban Areas ◽  
Third World ◽  
Political Process ◽  
Political Stability ◽  
The Political ◽  
Central Question ◽  
Conflict Escalation ◽  
Islamic Movement ◽  
Patterns Of Behavior ◽  
Cultural Structure

As in most Arab and Third World countries, the tribal structure is an anthropological reality and a sociological particularity in Sudan. Despite development and modernity aspects in many major cities and urban areas in Sudan, the tribe and the tribal structure still maintain their status as a psychological and cultural structure that frames patterns of behavior, including the political behavior, and influence the political process. This situation has largely increased in the last three decades under the rule of the Islamic Movement in Sudan, because of the tribe politicization and the ethnicization of politics, as this research reveals. This research is based on an essential hypothesis that the politicization of tribalism is one of the main reasons for the tribal conflict escalation in Sudan. It discusses a central question: Who is responsible for the tribal conflicts in Sudan?

Political Stability in West African States: Problems and Solutions. (Case Studies of Côte d’Ivoire and Senegal)

2018 ◽  
pp. 75-88
Author(s):  
Lyubov Sadovskaya
Keyword(s):  
Cote D'ivoire ◽  
Côte D’Ivoire ◽  
Political Stability ◽  
West African ◽  
The Political ◽  
Political Systems ◽  
African Countries ◽  
Cote D’Ivoire ◽  
External Threats ◽  
Côte D'ivoire

The article presents a new view on the problems of political stability in West African countries. For the first time was carried out a comparative analysis of the sustainability of the political systems of the two Francophone fastest growing countries in West Africa, Côte d’Ivoire and Senegal. The author analyzes the factors negatively influencing political stability social order, and those that reduce conflict potencial in these States. Internal and external threats to the political systems of Senegal and Сôte d’Ivoire are examined. The response of both countries to internal and external challenges is shown. The study proves that while external threats indanger Senegal’s political stability, such as the penetration of religious extremism, the crisis in Casamance, maritime piracy, drug traffic, for Côte d’Ivoire, on the contrary, main risks are internal: electoral, socio-political crises, the split of elites, arms smuggling, banditry. The study demonstrates that the level of social governance in Senegal is higher than in other West African countries, including Сôte d’Ivoire, due to the dualism of the political system: the coexistence of Western-style political institutions with local faiths (tariqas), as well as policy pursued by President M. Sall. aimed at achieving mutual compromise that ensure the peaceful settlement of conflicts and contradictions. The author concludes that a new approach to the development of a security strategy is required.

YOUTH POLICY IN MODERN RUSSIA. ABSENTEEISM AND POLITICAL PROTEST

2019 ◽  
Author(s):  
G.I. AVTSINOVA ◽  
М.А. BURDA
Keyword(s):  
Young People ◽  
Political Stability ◽  
Political Agenda ◽  
The Political ◽  
Political Protest ◽  
Youth Organizations ◽  
Youth Policy ◽  
The Government ◽  
Russian Politics ◽  
High Level

The article analyzes the features of the current youth policy of the Russian Federation aimed at raising the political culture. Despite the current activities of the government institutions in the field under study, absenteeism, as well as the protest potential of the young people, remains at a fairly high level. In this regard, the government acknowledged the importance of forming a positive image of the state power in the eyes of young people and strengthen its influence in the sphere of forming loyal associations, which is not always positively perceived among the youth. The work focuses on the fact that raising the loyalty of youth organizations is one of the factors of political stability, both in case of internal turbulence and external influence. The authors also focus on the beneficiaries of youth protests. The authors paid special attention to the issue of forming political leadership among the youth and the absence of leaders expressing the opinions of young people in modern Russian politics. At the same time, youth protest as a social phenomenon lack class and in some cases ideological differences. The authors come to the conclusion that despite the steps taken by the government and political parties to involve Russian youth in the political agenda, the young people reject leaders of youth opinion imposed by the authorities, either cultivating nonparticipation in the electoral campagines or demonstrating latent protest voting.

Country Risk Analysis of Bangladesh

2016 ◽  
Vol 5 (2) ◽  
Author(s):  
Zahidur Rahman ◽  
Jannatul Ferdous Bristy
Keyword(s):  
Risk Analysis ◽  
Financial Risk ◽  
Political Risk ◽  
Multinational Companies ◽  
Country Risk ◽  
Low Risk ◽  
Primary Data ◽  
Policy Makers ◽  
Financial Factors ◽  
Political Economic

In the endeavor of conquering the worlds consumers, multinational companies face enormous risks. Such risks may arise from different political, economic, and financial factors. These factors are commonly referred to country risk as a whole. Focusing Bangladesh in this regard, objective of this study is to find out the level of country risk in terms of political, economic, and financial riskiness. Analysis of country risk has been done using an internationally recognized methodology named International Country Risk Guide (ICRG). For political risk analysis, primary data has been collected from 20 journalists, bureaucrats and policy makers, business persons, corporate professionals, and academicians with a structured closed-ended questionnaire. Results indicate that Bangladesh is in high risk position in terms of political risk, low risk position in terms of economic risk and very low risk position in terms of financial risk. Compositely, Bangladesh has been found to be a moderately risky country for investment.

Sign in / Sign up

Export Citation Format

Share Document