Work

Risky Business: Political Instability and Sectoral Greenfield Foreign Direct Investment in the Arab World

Year: 2015

Type: article

Abstract: Which foreign direct investments are most affected by political instability? Analysis of quarterly greenfield investment flows into countries in the Middle East and North Africa during the period from 2003 to 2012 shows that adverse political shocks are associated with significantly reduced investment inflows in the non-resource tradable sectors. By contrast, investments in natural resource sectors and non-tradable activities appear insensitive to such shocks. Political instability is thus associated with increased reliance on non-tradables and aggravated resource dependence.

Source: The World Bank Economic Review

DOI: 10.1093/wber/lhv030

Authors: Martijn Burger, Elena Ianchovichina, Bob Rijkers

Language: English

Topic: International Business and FDI

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

SDGs: Peace, justice, and strong institutions, Decent work and economic growth

Open Access status: green

OpenAlex ID: W2149113113

FWCI: 14.95

Cites: 86

Cited by: 69

Related to: 10