Méon, Pierre-Guillaume; Sekkat, Khalid - Solvay Brussels School of Economics and Management, … - 2012
Studies of the impact of local political risk on foreign direct investment inflows overlook that worldwide FDI comes in … waves. Using a simple model we show that the impact of political risk on FDI inflows is likely to be weaker, the larger the … political risk. We find that it is a decreasing function of the worldwide amount of FDI. This finding has been upheld after many …