We assess the role of financial linkages for the transmission of sovereign risk in the Euro Crisis. Building on the narrative approach by Romer and Romer (1989), we use financial news to identify structural shocks in a VAR model of daily sovereign CDS for eleven European countries. To estimate...

The study investigated the impact of sovereign credit ratings on foreign portfolio investment (FPI) flows to emerging markets through panel data for seven markets (Argentina, Brazil, Egypt, India, Nigeria, South Africa and the United Arab Emirates) during the period from 2015 to 2019 on a...

Instruments of risk mitigation play an important role in managing country risk within the foreign direct investment (FDI) decision. Our study assesses country risk by state-dependent preferences and introduces futures contracts as a tool of risk mitigation. We show that foreign direct investment...

Instruments of risk mitigation play an important role in managing country risk within the foreign direct investment (FDI) decision. Our study assesses country risk by state-dependent preferences and introduces futures contracts as a tool of risk mitigation. We show that country risk assessments...

Country risk and globalization are two terms that at first sight may seem incompatible, globalization meaning opening, expansion of international economic relations, while country risk indicator generates limits or adjustments for the external activities. The present scientific approach aims to...

It is widely accepted that risk is a constant of the human activity in general. From this perspective, the expansion of business across country borders requires identification, assessment and brief analysis of the overall risk that operators would face in a targeted national economy.Country risk...

Given the controversies, especially from the last period, in terms of credibility of the major international rating agencies, this article aims to assess the correlation between country risk ratings and the evolution of FDI flows in the receiving economies. In this regard, we chose to analyze...