The Effect of Terrorism Shocks on Foreign Direct Investment in the Middle East and North Africa Countries

اقتصاد و توسعه منطقه ای

Article 8, Volume 21, Issue 8, February 2015   

Document Type: مقالات پژوهشی

DOI: 10.22067/erd.v21i8.43933

Authors

Behzad Salmani^* ; Hossein Panahi; Azra Jamshidi

Abstract

Abstract
The main focus of this study is to examine empirically the impulse response functions of inward Foreign Direct Investment to the shocks of Terrorism on 13 selected MENA countries from 1970 to 2012 by using Panel VAR method. Findings show that Terrorism shocks have negative impact on Foreign Direct Investment in selected countries. Adversely the results emphasizes that the impact of GDP per capita and openness shocks on Foreign Direct Investment is positive.

Key words: Foreign Direct Investment, Terrorism, Political Risk, Middle East and North Africa

JEL Classification: F21, G18, G32

Keywords

foreign direct investment; Terrorism; Political Risk; Middle East and North Africa

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