Impact of Terrorism on FDI Flows to Pakistan

Haider, Murtaza; Anwar, Amar

doi:10.2139/ssrn.2463543

Cited by 6 publications

(1 citation statement)

References 29 publications

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“…The finding revealed that occurrence of death and injuries caused by terrorism negatively affects foreign investment flow to Pakistan. Similarly, Haider and Anwar (2014) conclude that constant violence significantly increases investment and security risks while terrorist violence increases, reducing FDI. Additionally, Rawat and Khan (2020) conclude terrorism having long-term fatalistic impression over FDI in top terror-affected economies.…”

Section: Empirical Evidencesmentioning

confidence: 96%

Impact of Terrorism on Foreign Direct Investment in South Asian Countries: Evidence from Heterogeneous Panel Analysis

Qazi,

M. Iraqi

2023

j.financ.econ.res

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This research investigates the impact of terrorism and peace on foreign direct investment (FDI) in South Asian countries comprising eight economies. The study initially examines the effects of terrorism, GDP, inflation, and trade openness on the FDI of South Asian countries. Subsequently, it explores the influence of peace, GDP, inflation, and trade openness on the FDI of the same economies. The sample data covers a time frame from 2011 to 2021. The panel-regression framework is employed as the primary technique for data analysis. Moreover, to examine the integration among the variables under consideration, Pedroni cointegration and FMOLS regression methods are applied. The outcomes of the articles support the initial aim of the study by noting down a considerable nexus of both peace and terrorism as well as relative economic proxies in driving FDI of South Asian economies. The result strongly suggests that terrorism in these countries is one of the pioneering factors for predicting FDI. The study concludes that an increase in terrorism declines the flow of FDI, while an improvement in peace enhances FDI. Likewise, other indicators such as inflation, trade openness, and GDP also contribute to changes in FDI.

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Section: Empirical Evidencesmentioning

confidence: 96%

Impact of Terrorism on Foreign Direct Investment in South Asian Countries: Evidence from Heterogeneous Panel Analysis

Qazi,

M. Iraqi

2023

j.financ.econ.res

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Influence of country and company characteristics on international business decisions: A review, conceptual model, and propositions

Kotler¹,

Manrai

Lascu

et al. 2019

International Business Review

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Terror in the City: Local Terrorism and Firm Exports

Bönte,

Procher,

Malik

2024

The B.E. Journal of Economic Analysis &Amp; Policy

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In this paper, we examine the relationship between terrorism and exports at the firm-level. We use a panel data of 301 firms listed on the Pakistan Stock Exchange and records of terrorist attacks in Pakistani cities from 1999 to 2014. By calculating city-level terrorism indices, the study reveals significant variations in the frequency of terrorist incidents both between cities and within cities over different time periods. Our panel regressions show that firm exports are correlated with terrorist attacks in the cities where the firms are located, and these correlations are statistically significant even when terrorism is lagged up to six years. Interregional spillover effects of terrorism are less pronounced. While a negative correlation can be found between firm exports and our terrorism indices, the correlation with domestic sales tends to be statistically insignificant. The findings shed light on the persistent link between local terrorism and firms’ international and domestic operations.

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Impact of Terrorism on FDI Flows to Pakistan

Cited by 6 publications

References 29 publications

Impact of Terrorism on Foreign Direct Investment in South Asian Countries: Evidence from Heterogeneous Panel Analysis

Impact of Terrorism on Foreign Direct Investment in South Asian Countries: Evidence from Heterogeneous Panel Analysis

Influence of country and company characteristics on international business decisions: A review, conceptual model, and propositions

Terror in the City: Local Terrorism and Firm Exports

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