The Relevance of Political Stability on FDI
What is it about?
This paper studies the relevance of political stability on foreign direct investment (FDI) and the relevance of FDI on economic growth, in three panels. The first panel contains 11 very small economies; the second contains five well-developed and politically stable economies with highly positive FDI net inflows, while the third is a panel with economies that are prone to political violence or targeted by the terrorist attacks.
Why is it important?
Foreign direct investment (FDI) is considered an important motivator of economic growth. There are various studies that address the issue of the relevance of FDI to economic growth, comprising numerous other macroeconomic variables. As such, this study aims to fill the literature gap in understanding the psychological factor of macroeconomic dynamics as becoming increasingly important in determining the key components of economic growth.
The following have contributed to this page: Professor Petar Kurecic