Impact of Terrorism on Foreign Direct Investment: Analysis of BRICS countries
|Author:||Bc. Ayxan Abbasli|
|Year:||2021 - summer|
|Leaders:|| doc. Ing. Tomáš Cahlík CSc.
|Work type:|| Bachelors
|Awards and prizes:|
|Abstract:||Foreign Direct Investment can potentially be affected by adverse economic atmosphere
resulted from terrorism in developing countries. In this thesis, this potential relationship
is investigated in BRICS countries during the period 1992-2018 using panel data to which
terrorism variable and several other macroeconomic metrics have been incorporated. In
general, it has been documented that terrorism in the form of number of attacks does not
affect FDI inflows in BRICS. The result does not change even after the inclusion of lagged
values of number of incidents. Furthermore, Inflation and Human Development Index
(HDI) are macroeconomic variables that are statistically insignificant. On the other hand,
GDP per capita, Trade Openness and Population have been found to have statistically
significant impact on inward FDI in BRICS countries.