The impact of terrorism on the FDI of the EU and EEA Countries

Bezić, Heri; Galović, Tomislav; Mišević, Petar

doi:10.18045/zbefri.2016.2.333

Cited by 16 publications

(12 citation statements)

References 21 publications

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“…Ref. [28] with the example of the selected EU and EEA countries, demonstrates that terrorist activities reduce the security and confidence of investors in countries that are exposed to terrorist activities, thus reducing the FDI inflow. The same inferences come from [29,30].…”

Section: State-of-the-art: Relationship Between Terrorism and Fdimentioning

confidence: 99%

Terrorism as a Determinant of Attracting FDI in Tourism: Panel Analysis

Radić

2018

Sustainability

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The aim of this paper is to investigate whether terrorism is one of the important determinants affecting the investment decisions of foreign investors in tourism on a panel of 50 countries over the period 2000 to 2016. In addition to terrorism, the importance of three other theoretically significant determinants of attracting foreign direct investment (FDI) in tourism are explored—the previous level of FDI in tourism, the level of GDP and the international tourist arrivals. To obtain more reliable research results, the initial model is extended with certain control variables. The study uses system-GMM estimator for dynamic panel data models. The research results of a narrower and a wider model indicate that terrorism has no significant effect on the FDI inflow in tourism while international tourist arrivals significantly affect the future FDI in tourism in both models. Furthermore, the research results entail certain political connotations. In order to attract foreign investors in tourism, the most important factor is to ensure a stable macroeconomic environment with a competitive position in the Doing Business list and what better business conditions. Attention should also be focused on the security and preventive counter-terrorism, which will ensure that potential destinations reflect confidence, have a growth rate of tourist arrivals and, consequently, attract foreign investors.

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Section: State-of-the-art: Relationship Between Terrorism and Fdimentioning

confidence: 99%

Terrorism as a Determinant of Attracting FDI in Tourism: Panel Analysis

Radić

2018

Sustainability

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“…Moreover, they confirmed the evidence of bidirectional causality between FDI and economic growth. Bezić et al., 32 for the selected EEA and EU member countries, determined that political stability and terrorism have impacts on FDI inflows. Busse and Hefeker, 33 Gammoudi and Cherif 34 are the other papers that analyzed the relation among political instability, terrorism, and FDI inflow.…”

Section: The Nexus Between Economic Growth Fdi Inflow and Terrorist Attacksmentioning

confidence: 99%

Terrorism, environmental pollution, foreign direct investment (FDI), energy consumption, and economic growth: Evidences from China, India, Israel, and Turkey

Bildirici

2020

Energy & Environment

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In this paper, it was aimed to investigate the relation between economic growth, terrorism, foreign direct investment (FDI) inflow, environmental pollution, and energy consumption in China, India, Israel, and Turkey for a time span of 43 years from 1975 to 2017. Three different panel cointegration methods to determine the cointegration relation and two different causality methods to find the direction of causality were simultaneously used, since the presence of cointegration and direction of causality are fundamental to design economic policy and strategy. After similar results from panel cointegration tests were obtained, the causality tests were applied. Panel causality tests determined the evidence of uni-directional causality from terrorism, FDI, and energy usage to CO2 emission.

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“…Existing studies mainly concentrated on the effect of domestic uncertainties on foreign investment decision. Sources of domestic uncertainties considered by such studies include terrorism (Bezić et al 2016 ), exchange rate (Asamoah et al 2016 ; Eregha 2019 ), political crises (Gulen and Ion 2016 ; Bonaime et al 2018 ), among others. This means that the extant literature is somewhat biased against the effect of global uncertainty on foreign investment decision, notwithstanding that many uncertainty inducing events have occurred across the globe, particularly in the last decade (Al-Thaqeb and Algharabali 2019 ).…”

Section: Introductionmentioning

confidence: 99%

Global uncertainty, economic governance institutions and foreign direct investment inflow in Africa

Ogbonna

Ogbuabor

Manasseh

et al. 2022

Econ Change Restruct

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Based on the fact that Africa has not fared well in attracting foreign direct investments in the last decade compared to other regions of the world, especially during periods of high uncertainty occasioned by one crisis or the other, this study investigated: the impacts of global uncertainty and economic governance institutions on FDI inflow to Africa; the moderating effect of economic governance institutions on global uncertainty-FDI relationship in Africa; and other significant drivers of FDI inflow to Africa. The study used the system GMM modeling framework and a panel of 46 African economies over the period 2010–2019. The results indicate that global uncertainty has a significant dampening effect on FDI inflow to Africa, and economic governance institutions on the continent amplify this effect rather than mitigate it. The results further indicate that natural resource endowment, market size, and initial FDI inflows are robust drivers of FDI inflows to Africa, while the roles of financial development and trade openness remained muted. Overall, the study concludes that policymakers in Africa should take urgent steps to strengthen the quality of economic governance institutions as a means of mitigating the excruciating effect of global uncertainty on FDI inflows to Africa.

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The impact of terrorism on the FDI of the EU and EEA Countries

Abstract: The key goal of this research is to empirically determine the effects of terrorism on

Cited by 16 publications

References 21 publications

Terrorism as a Determinant of Attracting FDI in Tourism: Panel Analysis

Terrorism as a Determinant of Attracting FDI in Tourism: Panel Analysis

Terrorism, environmental pollution, foreign direct investment (FDI), energy consumption, and economic growth: Evidences from China, India, Israel, and Turkey

Global uncertainty, economic governance institutions and foreign direct investment inflow in Africa

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