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Foreign direct investment, aid, and terrorism : an analysis of developing countries

Bandyopadhyay, Subhayu; Sandler, Todd; Younas, Javed - 2011

Using a dynamic panel data framework, we investigate the relationship between the two major forms of terrorism and foreign direct investment (FDI). We then analyze how these relationships are affected by foreign aid flows. The analysis focuses on 78 developing countries for 1984- 2008. Our...