Business Excellence, Vol. 13 No. 2, 2019.
Preliminary communication
https://doi.org/10.22598/pi-be/2019.13.2.111
THE EFFECTS OF TERRORIST ATTACKS ON FOREIGN DIRECT INVESTMENTS INFLOWS IN TRANSITION COUNTRIES
Tomislav Galović
orcid.org/0000-0002-0891-796X
; Sveučilište u Rijeci, Ekonomski fakultet, Ivana Filipovića 4, 51000 Rijeka, Republika Hrvatska
Abstract
The main aim of the paper is to empirically measure the impact of terrorism and
other (institutional, economic, natural) factors on the foreign direct investments (FDI
inward stock) of transition economies in the world. Methodology includes the application
of two-step system GMM (Generalized Method of Moments) estimator of dynamic panel
analysis. The research covers a group of 16 countries from 2000 to 2016. Research
findings confirm that terrorist incidents, economic and institutional variables affect FDI
inward stock of transition economies. It can be concluded that institutional variables
(Government effectiveness, control of corruption) recorded the most significant impact
on the inward FDI stock in the transition economies of the global economy. From the
results, we can see the international competitiveness of transition countries about the
influence of the variables of terrorism and other relevant model variables on foreign
direct investments (FDI).
Keywords
FDI; Competitiveness; Transition Countries; Terrorism; GMM estimator
Hrčak ID:
229695
URI
Publication date:
12.12.2019.
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