Publication: Policy Options to Mitigate Political Risk and Attract FDI
Date
2020-08-12
ISSN
Published
2020-08-12
Author(s)
Kher, Priyanka
Chun, Dongwook
Abstract
Political risks covers a wide range of
issues, and this note focuses on a subset of political risk:
the risks that arise from government actions, whether
political or regulatory, that can affect the profitability
of an investment in a foreign country. Policies adopted and
implemented by governments can directly mitigate these
risks. Bad governance and economic crises are two big
drivers of political risk. Both are currently prevalent
globally, but especially in developing countries. The
purpose of this note is to summarize how political risk
caused by government actions can impact foreign investment,
and what tools countries can use to manage and mitigate such risks.
Citation
“Kher, Priyanka; Chun, Dongwook. 2020. Policy Options to Mitigate Political Risk and Attract FDI. Finance, Competitiveness and Innovation in Focus;. © World Bank, Washington, DC. http://hdl.handle.net/10986/34380 License: CC BY 3.0 IGO.”