FOREIGN DIRECT INVESTMENTS UNDER IMPACT OF POLITICAL RISKS: THEORETICAL SURVEY

  • Fatih Ayhan Bandırma On Yedi Eylül University, Balıkesir
Keywords: foreign direct investments; political risk; economic risk; country risk; political instability; economic development; developing countries.

Abstract

Beyond well-known economic indicators, political structure and social characteristics of a host country also have special importance for investors’ decisions. Political risk indicators cover mainly democratization level, political/government instability, war, immigration problems, problems with neighboring countries, internal and external conflicts, corruption level, military and religious influence on politics, law and order, ethnics tensions, property rights protection, national security and geographic situation - all of these factors also deeply affect decisions on FDI. Also, some basic social characteristics for host countries can play the catalyze role for FDI, such as literacy rate, education opportunities etc. The aim of this study is to examine theoretically the relationship between political and economic risks on the one hand with FDI on the other. It is aimed to show the theoretical background for the political and economic risk factors. Statistical figures on the FDI trends worldwide will be also presented.

Author Biography

Fatih Ayhan, Bandırma On Yedi Eylül University, Balıkesir

PhD, ast. professor in Bandırma On Yedi Eylül University, Balıkesir, Turkey

Research interests: international market of capital, macroeconomic development, international investments, international labor market, government regulation of national trade and employment

Published more than 25 papers in international journals, few manuals for students and chapters in collective monographs in Turkish and English

Participated more than 15 international conferences

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Published
2019-01-30
How to Cite
Ayhan, F. (2019). FOREIGN DIRECT INVESTMENTS UNDER IMPACT OF POLITICAL RISKS: THEORETICAL SURVEY. The EUrASEANs: Journal on Global Socio-Economic Dynamics, (1(14), 30-40. Retrieved from https://euraseans.com/index.php/journal/article/view/123