Terrorist Activities and Decisions of MNCs on Foreign Direct Investment in Developing Economies in Asia and the Pacific Region

Abstract

During the last few decades, there have been significant divergences in the flows of foreign direct investment (FDI) as per decisions taken by multinational companies (MNCs), and many of the developing nations in the Asia and Pacific region are most remarkable in this regard (UNCTAD, 2015). Apart from various economic factors, some sociopolitical issues have also been identified as influencing the FDI decisions. This study investigates the comovements of the standard measures of terrorist activities and MNCs’ decision on FDI in selected developing countries in the Asia and Pacific region by employing Generalized Method of Moment (GMM) estimation technique on constructing a balanced panel for 1990–2016. Results summarize that FDI inflows are negatively influenced by terrorist activities in the developing economies of the Asia and Pacific region.

Citation

Sinha, M., Chaudhury, A.R. and Sengupta, P.P. (2019), "Terrorist Activities and Decisions of MNCs on Foreign Direct Investment in Developing Economies in Asia and the Pacific Region", Das, R.C. (Ed.) The Impact of Global Terrorism on Economic and Political Development, Emerald Publishing Limited, Leeds, pp. 167-177. https://doi.org/10.1108/978-1-78769-919-920191015