Authors:Marija Petrović-Ranđelović, Tamara Rađenović, Bojan Krstić, and Vladimir Mićić
1 Introduction During the last three decades, numerous studies have confirmed that foreign direct investment (FDI) is the main driver for economic growth of the developing and transition countries ( Aranđelović – Petrović-Ranđelović 2011 ). FDI, by
Antalóczy, K. – Sass, M. (2002): Magyarország helye a közép-kelet-európai müködötöke-beáram-lásban – statisztikai elemzés [Hungary's position in CEE FDI inflow – statistical analysis]. Külgazdaság 2002
Authors:Abubakr Saeed, Yuhua Ding, Shawkat Hammoudeh, and Ishtiaq Ahmad
This study examines the relationship between terrorism and economic openness that takes into account both the number and intensity of terrorist incidents and the impact of government military expenditures on trade-GDP and foreign direct investment-GDP ratios for both developed and developing countries. It uses the dynamic GMM method to account for endogeneity in the variables. Deaths caused by terrorism have a significant negative impact on FDI flows, and the number of terrorist attacks is also found to be significant in hampering the countries’ ability to trade with other nations. The study also demonstrates that the developing countries exhibit almost similar results to our main analysis. The developed countries exhibit a negative impact of terrorism, but the regression results are not significant.