Abstract
The present study aimed to investigate whether terrorism hampered foreign greenfield investment inflows in 14 MENA countries from 2011 to 2021. One-step system generalized method of moments, the instrumental variable of a two-stage least squares regression estimator, and instrumental variables of generalized method of moments were used in this study for more robustness. The findings showed a significant negative relationship existed between terrorism and foreign greenfield investment inflows. Meanwhile, a significant positive relationship exists between the interaction variable that captured the joint effect of terrorism and military expenditures on the foreign greenfield investment inflows. To increase the reliability of the results, the main model was extended with control variables; significant positive relationships between adjusted net national income per capita, the consumer price index, and the GDP growth rate and foreign greenfield investment inflows were identified. Meanwhile, significant negative relationships existed between military expenditure, trade openness, and foreign greenfield investment inflows. The findings showed that foreign investors were reluctant to invest in MENA countries affected by terrorism and reduced the amount of their investments. Furthermore, the results indicated that terrorism renders foreign investors attractive in host countries and negatively impacts foreign greenfield investment projects, trade openness, and military expenditure. To attract foreign investors, policymakers should focus on develo** a stable macroeconomic environment and anti-terrorism measures to improve security, which will ensure sustainable economic growth.
Data Availability
Source of data sets are available in:
References
Abadie, A. (2006). Poverty, Political Freedom, and the roots of Terrorism, American Economic Review. American Economic Association, 96(2), 50–56. https://doi.org/10.1257/000282806777211847.
Abadie, A., & Gardeazabal, J. (2003). The economic costs of conflict: A case study of the Basque Country. American Economic Review, 93(1), 113–132. https://doi.org/10.1257/000282803321455188.
Abadie, A., & Gardeazabal, J. (2003a). The economic cost of conflict: A case study of the Basque Country. American Economic Review, 93(1), 113–132.
Abadie, A., & Gardeazabal, J. (2008). Terrorism and the World Economy. European Economic Review, 52(1), 1–27. https://doi.org/10.1016/j.euroecorev.2007.08.005.
Abdouli, M., & Hammami, S. (2017). Exploring links between FDI inflows, energy consumption, and economic growth: Further evidence from MENA countries. Journal of Economic Development, 42(1), 95–117. https://doi.org/10.35866/caujed.2017.42.1.005.
Ahmad, T., Hussain, S., Akbar, M., & Rehman, A. (2022). Impact of terrorism on stock market: Evidence from developed and develo** markets. International Journal of Disaster Risk Reduction, 70, 102786. https://doi.org/10.1016/j.ijdrr.2022.102786.
Ahmad, T., Hussain, S., Akbar, M., & Rehman, A. U. (2022a). Impact of terrorism on the stock market: Evidence from developed and develo** markets. International Journal of Disaster Risk Reduction, 70, 102786. https://doi.org/10.1016/j.ijdrr.2022.102786.
Al-Khouri, R. (2015). Determinants of foreign direct and indirect investment in the MENA region. The Multinational Business Review, 23(2), 148–166. https://doi.org/10.1108/MBR-07-2014-0034.
Arellano, M., & Bover, O. (1995). Another look at the instrumental variable estimation of error-components models’. Journal of Econometrics, 68(1), 29–51. https://doi.org/10.1016/0304-4076(94)01642-D.
Arif, I., & Suleman, T. (2017). Terrorism and stock market linkages: An empirical study from a front-line state. Global Business Review, 18(2), 365–378. https://doi.org/10.1177/0972150916668604.
Arif, I., Rawat, A. S., & Khan, L. (2019). Does terrorism hamper FDI inflows? A pre and post-9/11 analysis. Journal of Economic Studies, 8(5), 968–980. https://doi.org/10.1108/JES-12-2019-0571.
Ashraf, A., & Doytch, N. (2023). Does investing abroad reduce the ecological footprints at home? Analysis of outward GFDI and M&A from developed and develo** countries. Environment Development and Sustainability, 25(7), 6689–6710. https://doi.org/10.1007/s10668-022-02324-4.
Ashraf, A., Herzer, D., & Nunnenkamp, P. (2016). The effects of Greenfield FDI and cross-border M&As on total factor productivity. The World Economy, 39(11), 1728–1755. https://doi.org/10.1111/twec.12321.
Asongu, S., & Nwachukwu, J. (2017). Fuel exports, Aid and Terrorism. Multinational Business Review, 25(3), 239–267.
Asongu, S., Efobi, U., & Beecroft, I. (2018). Aid in modulating the impact of terrorism on FDI: No positive thresholds, no policy. Forum for Social Economics. https://doi.org/10.1080/07360932.2018.1434676.
Aziz, O. G., & Mishra, A. V. (2016). Determinants of FDI inflows to arab economies. The Journal of International Trade and Economic Development, 25(3), 325–356. https://doi.org/10.1080/09638199.2015.1057610.
Baltagi, B. H. (2012). Econometric Analysis of Panel Data (4th ed.). Wiley.
Bandyopadhyay, S., Sandler, T. M., & Younas, J. (2011). Foreign direct investment, aid, and terrorism: An analysis of develo** countries. Federal Reserve Bank of St Louis Working Paper 2011-004A. https://doi.org/10.2139/ssrn.1745142.
Bandyopadhyay, S., Sandler, T., & Younas, J. (2014). Foreign direct investment, aid, and terrorism. Oxford Economic Papers, 66(1), 25–50. https://doi.org/10.1093/oep/gpt026.
Bekhet, H. A., & Al-Smadi, R. W. (2015). Determinants of Jordanian foreign direct investment inflows: Bounds testing approach. Economic Modelling, 46, 27–35. https://doi.org/10.1016/j.econmod.2014.12.027.
Belgibayeva, A., & Plekhanov, A. (2019). Does corruption matter for sources of foreign direct investment? Rev World Econ, 155(3), 487–510. https://doi.org/10.1007/s10290-019-00354-1.
Bisson, O. (2012). Can better institutions attract more foreign direct investment? Evidence from develo** countries. International Research Journal of Finance & Economics, 82, 142–158.
Blundell, R., & Bond, S. (1998). Initial conditions and moment restrictions in dynamic panel data models. Journal of Econometrics, 87(1), 115–143. https://doi.org/10.1016/S0304-4076(98)00009-8.
Bouabdi, O. (2015). The spatial dimension of FDI in the MENA countries. Applied Economics Quarterly, 61(1), 93–113. https://doi.org/10.3790/aeq.61.1.93.
Boulton, T., & Shank, C. (2024). Terror threat and investor sentiment: International evidence. Global Finance Journal, 59, 100921. https://doi.org/10.1016/j.gfj.2023.100921.
Buckley, P. J., & Casson, M. C. (1988). A theory of cooperation in international business. In F. J. Contractor, & M. Lorange (Eds.), Cooperative strategies in international business: JVs and technology partnerships between firms. Lexington Books. https://doi.org/10.12691/jfe-2-5-9.
Burger, M., Ianchovichina, E., & Rijkers, B. (2016). Risky business: Political instability and sectoral greenfield foreign direct investment in the arab world. The World Bank Economic Review, 30(2), 306–331. https://doi.org/10.1093/wber/lhv030.
Calderón, C., Loayza, N., & Servén, L. (2004). Greenfield foreign direct investment and mergers and acquisitions: Feedback and macroeconomic effects (World Bank Policy Research Working Paper No. 3192). Washington, DC: World Bank.
Carril-Caccia, F., Milgram-Baleix, J., & Paniagua, J. (2022). Does Terrorism affect Foreign Greenfield investments? ThE Papers 22/06. Department of Economic Theory and Economic History of the University of Granada.
Chesney, M., Reshetar, G., & Karaman, M. (2011). The impact of terrorism on financial markets: An empirical study. Journal of Banking and Finance, 35(2), 253–267. https://doi.org/10.1016/j.jbankfin.2010.07.026.
Coaffee, J., & Fussey, P. (2015). Constructing resilience through security and surveillance: The politics, practices and tensions of security-driven resilience. Security Dialogue, 46(1), 86–105. https://doi.org/10.1177/0967010614557884.
De Hoyos, R. E., & Sarafidis, V. (2006). Testing for cross-sectional dependence in panel-data models’. Stata Journal, 6(4), 482–496. https://doi.org/10.1177/1536867X0600600403.
Densumite, S. (2023). Terrorism and Economic Growth in 32 countries using Panel Data Approach. RMUTT Global Business and Economic Review, 18(1), 193–210.
Dhahri, S., & Omri, A. (2020). Does foreign capital really matter for the host country agricultural production? Evidence from develo** countries. Rev World Econ, 156(1), 153–181. https://doi.org/10.1007/s10290-019-00361-2.
Dimitrova, A., Rogmans, T., & Triki, D. (2019). Country-specific determinants of FDI inflows to the MENA region: A systematic review and future research directions. Multinational Business Review, 28(1), 1–38. https://doi.org/10.1108/MBR-01-2019-0003/full/html.
Dimitrova, A., Triki, D., & Valentino, A. (2022). The effects of business-and non-business-targeting terrorism on FDI to the MENA region: The moderating role of political regime. International Business Review, 101976. https://doi.org/10.1016/j.ibusrev.2022.101976.
Dornean, A., Isan, V., & Oanea, D. (2012). The impact of the recent global crisis on foreign direct investment. Evidence from central and eastern European countries. Procedia Economics and Finance, 3, 1012–1017. https://doi.org/10.1016/S2212-5671(12)00266-3.
Durmaz, N. (2017). Foreign direct investment, democracy, and economic growth in Turkey. International Journal of Social Economics, 44(2), 232–252. https://doi.org/10.1108/IJSE-01-2015-0015.
Efobi, U., Asongu, S., & Beecroft, I. (2015). Foreign direct investment, aid and terrorism: Empirical insight conditioned on corruption control. African Governance and Development Institute Working Papers, 15/007. https://doi.org/10.2139/ssrn.2586355.
Efobi, U., Asongu, S., & Beecroft, I. (2015a). Foreign direct investment, aid and terrorism: Empirical insight conditioned on corruption control. African Governance and Development Institute. Working Paper No. 15/007, https://doi.org/10.2139/ssrn.2586355.
Egger, P., & Gassebner, M. (2015). International Terrorism as a Trade impediment? Oxford Economic Papers, 67(1), 42–62. https://doi.org/10.1093/oep/gpu037.
Ehresman, T. G., & Okereke, C. (2015). Environmental justice and conceptions of the green economy. International Environmental Agreements: Politics Law and Economics15, (1), 13–27. https://doi.org/10.1007/s10784-014-9265-2.
El Ouadghiri, I., & Peillex, J. (2018). Public attention to islamic terrorism and stock market returns. Journal of Comparative Economics, 46(4), 936–946. https://doi.org/10.1016/j.jce.2018.07.014.
Elheddad, M. M. (2018). What determines FDI inflows to MENA countries? Empirical study on Gulf countries: Sectoral level analysis. Research in International Business and Finance, 44, 332–339. https://doi.org/10.1016/j.ribaf.2017.07.101.
Enders, W., & Sandler, T. (1996). Terrorism and foreign direct investment in Spain and Greece. Kyklos, 49(3), 331–352. https://doi.org/10.1111/j.1467-6435.1996.tb01400.x.
Enders, W., & Sandler, T. (2000). Is transnational Terrorism becoming more threatening? A time-series Investigation. Journal of Conflict Resolution, 44(3), 307–332. https://doi.org/10.1177/0022002700044003002.
Enders, W., Sachsida, A., & Sandler, T. (2006). The impact of transnational terrorism on US foreign direct investment. Political Research Quarterly, 59(4), 517–531. https://doi.org/10.1177/106591290605900402.
Eren, M., & Zhuang, H. (2015). Mergers and acquisitions versus greenfield investment, absorptive capacity, and economic growth: Evidence from 12 new member states of the European Union. Eastern European Economics, 53(2), 99–123, https://doi.org/10.1080/00128775.2015.1033240.
Erkekoglu, H., & Kilicarslan, Z. (2016). Do political risks affect the foreign direct investment inflows to host countries? Journal of Business. Economics and Finance, 5(2). https://doi.org/10.25115/eea.v38i3.3674. 2018 – 232.
Estrada, M. A. R., Park, D., Kim, J. S., & Khan, A. (2015). The economic impact of terrorism: A new model and its application to Pakistan. Journal of Policy Modeling, 37(6), 1065–1080. https://doi.org/10.1016/j.jpolmod.2015.08.004.
Evans, R. H. (1996). An analysis of criterion variable reliability in conjoint analysis’. Perceptual and Motor Skills, 84(3), 988–990. https://doi.org/10.2466/pms.1996.82.3.988.
Gammoudi, M., & Cherif, M. (2016). Capital account openness, political institutions and FDI in MENA region: An empirical investigation. Journal of Economic Development, 41(2), 53–76. https://doi.org/10.35866/caujed.2016.41.2.003.
Gammoudi, M., & Cherif, M. (2016a). Capital account openness, political institutions and FDI in the MENA region: An empirical investigation. Journal of Economic Development, 41(2), 53–76. https://doi.org/10.35866/caujed.2016.41.2.003.
Global Terrorism Index Score (GTI) (2022). Retrieved on 1-12-2022, https://www.visionofhumanity.org/maps/global-terrorism-index/#/.
Global peace index (GPI) (2022). Retrieved on 1-12-2022 https://www.visionofhumanity.org/maps/#/.
Golose, P. (2023). Terrorism as Socio-Economic and Cultural barriers to Indonesian firms’financial performance. Journal of Ethnic and Cultural Studies, 10(2), 22–40. https://doi.org/10.29333/ejecs/1536.
Grace, M., Wong, M. C., Zhuang, H., & Cate, R. (2024). The Impact of Armed Conflict on Inward Foreign Direct Investment (FDI): An Analysis of Conflict Over Government, Conflict Over Territory, and FDI, Global Economic Review, Retrieved from https://www.tandfonline.com/doi/full/10.1080/1226508X.2024.2305468?scroll=top&needAccess=true, https://doi.org/10.1080/1226508X.2024.2305468.
Guermat, K., Frynas, C., & Al-Bortmani, J. G. (2003). Motives for foreign investment in Oman. Thunderbird International Business Review, 45(4), 431–446. https://doi.org/10.1002/tie.10083.
Gunby, P., **, Y., & Reed, W. R. (2017). Did FDI really cause Chinese economic growth? A meta-analysis. World Development, 90, 242–255. https://doi.org/10.1016/j.worlddev.2016.10.001.
Hakimi, A., & Hamdi, H. (2017). Does corruption limit FDI and economic growth? Evidence from MENA countries. International Journal of Emerging Markets, 12(3), 550–571. https://doi.org/10.1108/IJoEM-06-2015-0118.
Hanafy, S. (2014). Determinants of FDI location in Egypt: Empirical analysis using governorate panel data. Working Papers 875, Economic Research Forum
Harms, P., & Méon, P. G. (2017). Good and useless FDI: The growth effects of greenfield investment and mergers and acquisitions. Review of International Economics, 26(1), 37–59. https://doi.org/10.1111/roie.12302.
Helmy, H. (2013). The impact of corruption on FDI: Is MENA an exception? International Review of Applied Economics, 27(4), 491–514. https://doi.org/10.1080/02692171.2012.752445.
Hsiao, C. (2007). Panel data analysis-advantages and challenges. TEST, 16(1), 1–22. https://doi.org/10.1007/s11749-007-0046-x.
Im, K., So. Pesaran, M. H., & Yongcheol, S. (2003). Testing for unit roots in heterogeneous panels. Journal of Econometrics, 115(1), 53–74. https://doi.org/10.1016/S0304-4076(03)00092-7.
IMF. (1993). Balance of payments manual: Fifth Edition (BPM5). International Monetary Fund.
Iršová, Z., & Havránek, T. (2013). Determinants of horizontal spillovers from FDI: Evidence from a large meta-analysis. World Development, 42, 1–15. https://doi.org/10.1016/j.worlddev.2012.07.001.
Jabri, A., Guesmi, K., & Abid, I. (2013). Determinants of foreign direct investment in MENA region: Panel co-integration analysis. Journal of Applied Business Research (Jabr), 29(4), 1103–1109. https://doi.org/10.19030/jabr.v29i4.7976.
Jensen, N. M., and Young. D. J (2008). A violent future? Political risk insurance markets and violence forecasts. Journal of Conflict Resolution, 52(4), 527–547. https://doi.org/10.1177/0022002708316744.
Jiménez, A., & Lupton, N. C. (2021). Terrorism hazard and infrastructure projects: The moderating role of home experience and institutions. Journal of Business Research, 135, 721–730. https://doi.org/10.1016/j.jbusres.2021.07.012.
Keefer, P., & Loayza, N. (Eds.). (2008). Terrorism, Economic Development, and political openness. Cambridge University Press.
Keser, A., Cutcu, I., Tiwari, S., Eren, M. V., Askar, S. S., & Abouhawwash, M. (2023). How does terrorism hollow out the sustainable economic growth in big ten countries? International Journal of Emerging Markets, ahead-of-print(No. ahead-of-print). https://doi.org/10.1108/IJOEM-03-2023-0384.
Kim, W., & Sandler, T. (2020). Middle East and North Africa: Terrorism and conflicts. Global Pol, 11(4), 424–438. https://doi.org/10.1111/1758-5899.12829.
Kinyanjui, S. (2014). The impact of terrorism on foreign direct investment in Kenya. International Journal of Business Administration, 5(3), 148–157. https://doi.org/10.5430/ijba.v5n3p148.
Kılıç, C., Soyyiğit, S., Bayar, Y., & Bekun, F. (2023). Exploration on terrorism, ecological footprint, and environmental sustainability in countries with the most terrorism antecedent: Accessing evidence from panel Fourier analysis. Heliyon, 28(10(1)), e22849. https://doi.org/10.1016/j.heliyon.2023.e22849.
Koko, M., Aminurraasyid, Y., & Tapiwa, Z. (2017). Political risk and foreign direct investment in Nigeria: New empirical evidence. Accounting, 3(3), 171–180. https://doi.org/10.5267/j.ac.2016.11.001.
Kumar, R., Shahzad, S., & Stauvermann, P.,N (2023). Non-linear effects of Terrorism on Economic Growth in Pakistan: Accounting for Capital Per worker and structural breaks, the Singapore Economic Review (SER). World Scientific Publishing Co Pte Ltd, 68(02), 629–650. https://doi.org/10.1142/S0217590819500140.
Kurul, Z., & Yalta, Y. (2017). Relationship between institutional factors and FDI flows in develo** countries: New evidence from dynamic panel estimation. Economies, 5(2), 1–10. https://doi.org/10.3390/economies5020017.
Lee, C. (2015). Terrorism, Counterterrorism Aid, and Foreign Direct Investment. Foreign Policy Analysis, 13(1), 168–187.
Leigh, J. P., & Schembri, M. (2004). Instrumental variables technique: Cigarette price provided Better Estimate of effects of Smoking on SF-12. Journal of Clinical Epidemiology, 57(3), 284–293. https://doi.org/10.1016/j.jclinepi.2003.08.006PMID 15066689.
Lestari, D., Lesmana, D., Yudaruddin, Y. A., & Yudaruddin, R. (2022). The impact of financial development and corruption on foreign direct investment in develo** countries. Investment Management and Financial Innovations, 19(2), 211–220. https://doi.org/10.21511/imfi.19(2).2022.18.
Levin, A., Lin, C. F., & Chu, C. S. J. (2002). Unit Root tests in Panel Data: Asymptotic and Finite-Sample properties. Journal of Econometrics, 108(1), 1–24. https://doi.org/10.1016/S0304-4076(01)00098-7.
Li, Q. (2006). Political violence and foreign direct investment. Research in Global Strategic Management, 12, 231–255. https://doi.org/10.1016/S1064-4857(06)12011-2.
Li, J. (2007). Real options and international strategy: A critical review. Advances in Strategic Management, 24, 67–101. https://doi.org/10.1016/S0742-3322(07)24003-3.
Lin, M., & Kwan, Y. (2016). FDI technology spillovers, geography, and spatial diffusion. International Review of Economics & Finance, 43, 257–274. https://doi.org/10.1016/j.iref.2016.02.014.
Liu, X., & Zou, H. (2008). The impact of greenfield FDI and mergers and acquisitions on innovation in Chinese high-tech industries. Journal of World Business, 43(3), 352–364. https://doi.org/10.1016/j.jwb.2007.11.004.
Ljungwall, C., & Tingvall, P. G. (2010). Is China different? A meta-analysis of the effects of foreign direct investment on domestic firms. Journal of Chinese Economic and Business Studies, 8(4), 353–371. https://doi.org/10.1080/14765284.2010.513175.
Luca, O., & Spatafora, N. (2012). Capital inflows, financial development, and domestic investment: determinants and inter-relationships, IMF Working Paper, WP/12/120, https://doi.org/10.5089/9781475503494.001.
Mahmood, H., & Alkhateeb, T. (2018). Foreign direct investment, domestic investment and oil price nexus in Saudi Arabia. International Journal of Energy Economics and Policy, 8(4), 147–151.
McCloud, N., & Delgado, M. S. (2022). Domestic interest rate, foreign direct investment, and corruption. Rev World Econ, 158(2), 467–491. https://doi.org/10.1007/s10290-021-00435-0.
Meierrieks, D., & Schneider, F. (2022). Terrorism and international economic policy. European Journal of Political Economy, 69 No(2921), 102011. https://doi.org/10.1016/j.ejpoleco.2021.102011.
Méon, P. G., & Sekkat, K. (2004). Does the quality of institutions limit the MENA’s integration in the world economy? World Economy, 27(9), 1475–1498. https://doi.org/10.1111/j.0378-5920.2004.00661.x.
Mina, W. M. (2012). The institutional reforms debate and FDI flows to the MENA region: The best ensemble. World Development, 40(9), 1798–1809. https://doi.org/10.1016/j.worlddev.2012.04.026.
Mohamed, S., & Sidiropoulos, M. (2010). Another look at the determinants of foreign direct investment in MENA countries: An empirical investigation. Journal of Economic Development, 35(2), 75–95. https://doi.org/10.35866/caujed.2010.35.2.005.
Morrison, T., Ajoku, O. C., Nwikiabeh, L. B., & Leekaaga, J. F. (2016). Terrorist activities and foreign direct investment in selected African states (1970–2010). Equatorial Journal of Finance and Management Sciences, 1(2), 16–29.
Müller, T. (2007). Analyzing modes of foreign entry: Greenfield investment versus acquisition. Review of International Economics, 15(1), 93–111. https://doi.org/10.1111/j.1467-9396.2006.00634.x.
Nguyen, H. T., Luu, H. N., & Do, N. H. (2021). The dynamic relationship between greenfield investments, cross-border M&As, domestic investment, and economic growth in Vietnam. Economic Change and Restructuring, 54(4), 1065–1089. https://doi.org/10.1007/s10644-020-09292-7.
Nikšić Radić, M., Dragičević, D., & Barkiđija Sotošek, M. (2019). Causality between terrorism and FDI in tourism: Evidence from panel data. Economies, 7(2), 38. https://doi.org/10.3390/economies7020038.
OECD. (2008). Benchmark definition of foreign direct investment. Fourth Edition. OECD.
Olson, M. (1993). Dictatorship, democracy, and Development. American Political Science Review, 87(3), 567–576. https://doi.org/10.2307/2938736.
Opocu, E. (2015). The puzzling effects of foreign aid (ODA) on FDI: Examining Africa’s experience. Journal of Economics and Sustainable Development, 6(16), 119–133.
Ouyang, A. Y., & Rajan, R. S. (2017). Impact of terrorism on cross-border mergers and acquisitions (M&As): Prevalence, frequency and intensity. Open Economies Review, 28(1), 79–106. https://doi.org/10.1007/s11079-016-9407-y.
Paul, J. A., & Bagchi, A. (2023). Immigration, terrorism, and the economy. Journal of Policy Modeling. https://doi.org/10.1016/j.jpolmod.2023.03. https://www.sciencedirect.com/science/article/pii/S0161893823000248 .002, available at.
Polyxeni, K., & Theodore, M. (2019). An empirical investigation of FDI inflows in develo** economies: Terrorism as a determinant factor. The Journal of Economic Asymmetries, 20, e00125. https://doi.org/10.1016/j.jeca.2019.e00125.
Posso, A. (2023). Terrorism, banking, and informal savings: Evidence from Nigeria. Journal of Banking and Finance, 150, 106822. https://doi.org/10.1016/j.jbankfin.2023.106822.
Quyang, A. Y., & Rajan, R. S. (2016). Impact of terrorism on crossborder mergers and acquisitions (M&As): Prevalence, frequency, and intensity. Open Economies Review, 28, 79–106. https://doi.org/10.1007/s11079-016-9407-y.
Rasheed, H., & Tahir, M. (2012). FDI and terrorism: Co-integration & granger causality. International Affairs and Global Strategy, 4, 1–5.
Rezza, A. (2015). A meta-analysis of FDI environmental regulations. Environment and Development Economics, 20(2), 1–24. https://doi.org/10.1017/S1355770X14000114.
Rugman, A., & Li, J. (2007). Real options and the theory of Foreign Direct Investment. International Business Review, 16(6), 687–712. https://doi.org/10.1016/j.ibusrev.2007.08.004.
Salem, M., & Baum, A. (2016). Determinants of foreign direct real estate investment in selected MENA countries. Journal of Property Investment and Finance, 34(2), 116–142. https://doi.org/10.1108/JPIF-06-2015-0042.
Sandler, T., & Enders, W. (2008). Economic consequences of Terrorism in developed and develo** countries: An overview. In P. Keefer, & N. Loayza (Eds.), Terrorism, Economic Development and Political Openness. Cambridge University Press.
Sandler, T., & George, J. (2016). Military expenditure trends for 1960–2014 and what they reveal. Global Policy, 7(2), 174–184.
Schmid, Α. (2010). Frameworks for conceptualizing terrorism. Terrorism and Political Violence, 16(2), 197–221. https://doi.org/10.1080/09546550490483134.
Shah, M. H., & Faiz, M. (2015). Terrorism and foreign direct investment: An empirical analysis of SAARC countries. City University Research Journal, 5(2), 219–233.
Shahbaz, M. A., Javed, A., Dar, A., & Sattar, T. (2013). Impact of terrorism on foreign direct investment in Pakistan. Archives of Business Research, 1(1). https://doi.org/10.13187/es.2014.4.279.
Shawe, R. (2023). I. McAndrew (Ed.), Impact of domestic Terrorism on Economy: A literature review. iBusiness 15 84–97 https://doi.org/10.4236/ib.2023.151006.
Siddiqui, A., & Iqbal, A. (2018). In search of spatial interdependence of US outbound FDI in the MENA region. The World Economy, 41(5), 1415–1436. https://doi.org/10.1111/twec.12571.
Singh, P. (2001). Punjab Terrorism: Truth still uncovered. Economic and Political Weekly, 36(40), 3829–3831. https://doi.org/10.2307/4411200.
Singh, P. (2007). The Political Economy of the cycles of violence and non-violence in the Sikh Struggle for Identity and Political Power: Implications for Indian federalism. Third World Quarterly, 28(3), 555–570. https://doi.org/10.1080/01436590701192744.
Steiner, C. (2010). An overestimated relationship? Violent political unrest and tourism foreign direct investment in the Middle East. International Journal of Tourism Research, 12(6), 726–738. https://doi.org/10.1002/jtr.788.
Sun, C., Abbas, H. S. M., Xu, X., & Abbas, S. (2022). The impact of socio-economic and fractionalization determinants on terrorism in ESNA. Socio-Economic Planning Sciences, 79, 101138. https://doi.org/10.1016/j.seps.2021.101138.
Tienhaara, K. (2006). Mineral investment and the regulation of the environment in develo** countries: Lessons from Ghana. International Environmental Agreements: Politics Law and Economics6, (4), 371–394. https://doi.org/10.1007/s10784-006-9010-6.
Tingbani, I., Okafor, G., Tauringana, V., & Zalata, A. M. (2019). Terrorism and country-level global business failure. Journal of Business Research, 98(C), 430–440. https://doi.org/10.1016/j.jbusres.2018.08.037.
Tong, T. W., & Reuer, J. J. (2007). Real options in multinational corporations: Organizational challenges and risk implications. Journal of International Business Studies, 38(2), 215–230. https://doi.org/10.1057/palgrave.jibs.8400260.
Ucal, M., Özcan, K. M., Bilgin, M. H., & Mungo, J. (2010). Relationship between financial crisis and foreign direct investment in develo** countries using semiparametric regression approach. Journal of Business Economics and Management, 11(1), 20–33. https://doi.org/10.3846/jbem.2010.02.
Ullah, M. S., & Inaba, K. (2014). Liberalization and FDI performance: Evidence from ASEAN and SAFTA member countries. Journal of Economic Structures, 3: 6. 1–24, https://doi.org/10.1186/s40008-014-0006-z.
UNCTAD. (1996). World Investment Report (1996). Trends and determinants. United Nations. United Nations Publications. Sales No: E.96. II. A.14.
UNCTAD (2016). World Investment Report, Available online at http://unctad.org/en/pages/PublicationWebflyer.aspx?publicationid=1555, Retrieved on 22/3/2017.
UNCTAD (2015). World Investment Report, Available online at http://unctad.org/en/pages/PublicationWebflyer.aspx?publicationid=1245, Retrieved on 15/3/2017.
UNESCO. (2017). Preventing violent extremism through education: A guide for policy-makers. UNESCO.
United Nations Conference on Trade and Development (UNCTAD) (2022). Retrieved on 1-12-2022 from https://unctadstat.unctad.org/wds/ReportFolders/reportFolders.aspx.
Wang, M & Wong, N. C. (2009). Foreign direct investment and economic growth: The growth accounting perspective. Economic Inquiry, 47(4), 701–710.
Wang, C., & Wang, L. (2023). Green investment and vertical alliances in the maritime supply chain. Environment Development and Sustainability, 25, 6657–6687. https://doi.org/10.1007/s10668-022-02322-6.
Wooldridge, J. M. (2010). Econometric Analysis of Cross Section and Panel Data. 2nd ed. The MIT Press. https://mitpress.mit.edu/books/econometric-analysis-cross-section-and-panel-data-second-edition (Accessed: 12 May 2021).
World Development Indicators (WDI) (2022). Retrieved on 01-12-2022 from: https://data.worldbank.org/.
WTO (1996). Annual Report, 2. Geneva: WTO.
Younas, J. (2009). Does institutional quality affect capital mobility? Evidence from develo** countries. Journal of Institutional Economics, 5(2), 207–223. https://doi.org/10.1017/S1744137409001301.
Younas, J. (2015). Terrorism, openness, and the Feldstein-Horioka paradox. European Journal of Political Economy, 38, 1–11. https://doi.org/10.1016/j.ejpoleco.2014.12.005.
Zebua, H. I. (2016). Determinants of bilateral foreign direct investment Intra-ASEAN: Panel gravity model. The East Asian Journal of Business Management, 6(1), 19–24. https://doi.org/10.13106/eajbm.2016.vol6.no1.19.
Funding
There is no funding for this manuscript.
Author information
Authors and Affiliations
Contributions
All authors have the same contribution. All authors read and approved the final manuscript.
Corresponding author
Ethics declarations
Ethical Approval
The authors declare that this research article complies with the ethical standards of this journal.
Informed Consent
This article does not contain any information that requires informed consent.
Competing Interests
The authors declare that they have no conflict of interest.
Additional information
Publisher’s Note
Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.
Rights and permissions
Springer Nature or its licensor (e.g. a society or other partner) holds exclusive rights to this article under a publishing agreement with the author(s) or other rightsholder(s); author self-archiving of the accepted manuscript version of this article is solely governed by the terms of such publishing agreement and applicable law.
About this article
Cite this article
Alshubiri, F., AlGhazali, A. Does Terrorism Hamper Foreign Greenfield Investment Inflows? Empirical Evidence from MENA Countries. Asia-Pac Financ Markets (2024). https://doi.org/10.1007/s10690-024-09468-5
Accepted:
Published:
DOI: https://doi.org/10.1007/s10690-024-09468-5
Keywords
- International terrorism
- Foreign greenfield investments
- Panel data technique
- S-GMM analysis
- IV-GMM analysis
- IV-2SLS analysis
- MENA countries