Burger, MartijnIanchovichina, ElenaRijkers, Bob2014-02-052014-02-052013-12https://hdl.handle.net/10986/16932Which foreign direct investments are most affected by political instability? Analysis of quarterly greenfield investment flows into countries in the Middle East and North Africa 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. Consistent with these patterns, the significant reduction in investment inflows in Arab Spring affected economies was starkest in the non-resource manufacturing sector. Political instability is thus associated with increased reliance on non-tradables and aggravated resource dependence. Conversely, how intensified political instability affects aggregate foreign direct investment is critically contingent on the initial sector composition of these flows.en-USCC BY 3.0 IGOACCOUNTINGADVERTISINGAFFILIATED ORGANIZATIONSALTERNATIVE INVESTMENTALTERNATIVE METHODSAMOUNT OF CAPITALAPPROACHAUTOMOBILESAUXILIARY EQUIPMENTAVAILABILITYBATTERIESBIOMASSBIOMASS POWERBOILERBUILDING MATERIALBUREAUCRATIC QUALITYCAPITAL ACCUMULATIONCAPITAL FLOWCAPITAL FLOWSCAPITAL STOCKCEMENTCHECKSCHEMICAL PRODUCTSCIVIL WARCOALCOMMODITYCOMMODITY PRICECOMPUTER SYSTEMSCONSUMER ELECTRONICSCONSUMER PRICE INDEXCORPORATE SOCIAL RESPONSIBILITYCOUNTRY DUMMIESCOUNTRY FIXED EFFECTSCOUNTRY RISKCRUDE OILCUSTOMDATA PROCESSINGDECLINE IN INVESTMENTDEMOCRACYDEMOCRATIC ACCOUNTABILITYDEVELOPING COUNTRIESDIGITAL CONTENTDIMINISHING RETURNSDUMMY VARIABLEDUMMY VARIABLESE-MAILELECTRIC POWEREMPLOYMENTENERGY RESOURCESENFORCEMENT OF CONTRACTSEQUIPMENTEXCHANGE RATEEXCHANGE RATESEXPECTED RETURNSFINANCIAL CRISISFINANCIAL INFORMATIONFINANCIAL SERVICESFOREIGN COMPANIESFOREIGN DIRECT INVESTMENTFOREIGN DIRECT INVESTMENTSFOREIGN INVESTMENTSFOREIGN INVESTORSFOSSILFOSSIL FUELGASGAS EXTRACTIONGASOLINEGEOTHERMAL ELECTRICGLOBAL ECONOMYGOVERNANCE INDEXGOVERNANCE INDICATORSGROSS DOMESTIC PRODUCTHARDWAREHEATHOST COUNTRYHOST ECONOMYHUMAN CAPITALHYDROELECTRIC POWERIDINDUSTRIAL PRODUCTIONINFLATIONINFORMATION PROVIDERSINSTRUMENTINSURANCEINTERNATIONAL BANKINTERNATIONAL BUSINESSINTERNATIONAL ECONOMICSINTERNATIONAL INVESTMENTINTERNATIONAL INVESTORSINTERNATIONAL TRADEINTERNATIONALIZATIONINVESTINGINVESTMENT BANKINGINVESTMENT CLIMATEINVESTMENT FLOWSINVESTMENT FUNCTIONINVESTMENT LOCATION DECISIONSINVESTMENT MANAGEMENTINVESTMENT OPPORTUNITIESINVESTMENT PROJECTSLIENLIQUIDITYMACROECONOMIC CONDITIONSMACROECONOMIC MANAGEMENTMANAGEMENT SERVICESMANUFACTURINGMANUFACTURING INDUSTRIESMARKET ENTRYMARKETS DATABASEMATERIALMONETARY FUNDMOTION PICTUREMULTINATIONAL CORPORATIONSNATURAL GASNATURAL RESOURCENATURAL RESOURCESNEGATIVE SHOCKSNEW TECHNOLOGYNUCLEAR ELECTRIC POWERNUCLEAR ELECTRIC POWER GENERATIONOILOIL COMPANYOIL PIPELINEOIL RESOURCEOPEN ACCESSOPEN ECONOMYOUTPUTPETROLEUMPIPELINEPOLITICAL DETERMINANTSPOLITICAL DISORDERPOLITICAL ECONOMYPOLITICAL RISKPOLITICAL STABILITYPOLITICAL UNCERTAINTYPOLITICAL UNRESTPOLITICAL UPHEAVALPORTFOLIOSPOSTAL SERVICEPOWERPRODUCTIVITYPROFIT MARGINSPROPERTY RIGHTSPUBLIC SPENDINGRADIORATE OF RETURNRATES OF RETURNREAL ESTATERESIDENTIAL BUILDINGRESULTRESULTSRETAIL BANKINGRETURNSRISKY BUSINESSRULE OF LAWSATELLITESEARCHSEMICONDUCTORSSITESSTABLE ECONOMIESSTATEMENTSUBSCRIPTIONTAXTELECOMMUNICATIONTELECOMMUNICATIONSTERRORISMTRANSMISSIONTRANSPARENCYTURBINESURLUSESUTILITIESVEHICLESVIDEOVIDEO GAMESVOLATILITYWEBWINDWOOD PRODUCTSWORLD DEVELOPMENT INDICATORSWORLD ECONOMYGreenfield FDItradablesnon-tradablesDutch DiseaseWorld Bank10.1596/1813-9450-6716