The effect of terrorist incidents on capital flows

0459430 - NHU-C 2017 RIV US eng J - Článek v odborném periodiku
Filer, Randall K. - Stanišić, D.
The effect of terrorist incidents on capital flows.
Review of Development Economics. Roč. 20, č. 2 (2016), s. 502-513. ISSN 1363-6669. E-ISSN 1467-9361
Institucionální podpora: PRVOUK-P23
Klíčová slova: foreign direct-investment * macroeconomic consequences * transnational terrorism
Kód oboru RIV: AH - Ekonomie
Impakt faktor: 0.459, rok: 2016

Previous work has shown that terrorism has significant negative impact on countries’ economies. We explore this relationship in more detail. Using an unbalanced panel of more than 160 countries for up to 25 years and the Global Terrorism Database (GTD) we show a decrease in foreign direct investment (FDI) as a consequence of terrorism. We also find evidence that FDI flows are more sensitive to terrorism than either portfolio investments or external debt flows. Finally, we test the hypothesis that terrorism has negative spill-over effects on FDI flows into neighboring countries and find evidence that cultural, but not geographical, closeness matters.
Trvalý link: http://hdl.handle.net/11104/0259625