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The Fdi-Political Risk Nexus: Some New Insights, Meghan M. Nelson, Rajeev Sooreea, Gigi Gokcek
The Fdi-Political Risk Nexus: Some New Insights, Meghan M. Nelson, Rajeev Sooreea, Gigi Gokcek
Barowsky School of Business | Faculty Scholarship
Most of the existing literature in the FDI-political risk nexus has focused on the creation of economic models to assess foreign investment decisions in the presence of political risk. This is entirely legitimate and valuable as foreign investors are interested in assessing the political risk climate of their investment location. However, not much research has been done to assess how FDI could affect political risk. Globalization implies an increasing amount of cross-border investment and trade flows. For some countries, FDI is a huge component of their GDP. Since FDI is a composite bundle of capital stock, knowledge and technology (Balasubramanyam …