Publication: Risky Business: Political Instability and Sectoral Greenfield Foreign Direct Investment in the Arab World
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Published
2016-07-01
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1564-698X
Date
2018-01-03
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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.
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“Burger, Martijn; Ianchovichina, Elena; Rijkers, Bob. 2016. Risky Business: Political Instability and Sectoral Greenfield Foreign Direct Investment in the Arab World. World Bank Economic Review. © World Bank. http://hdl.handle.net/10986/29122 License: CC BY-NC-ND 3.0 IGO.”
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