Detangling terrorism's impact on foreign investment: how do credibility and political involvement matter

The doctoral thesis investigates the differential responses of foreign investments to terrorist incidents across various host countries. While existing literature has explored the relationship between terrorism and FDI, few studies have systematically examined cross-national variations in the impact...

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Main Author: Lyu, Mengting
Other Authors: -
Format: Thesis-Doctor of Philosophy
Language:English
Published: Nanyang Technological University 2024
Subjects:
Online Access:https://hdl.handle.net/10356/179718
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author Lyu, Mengting
author2 -
author_facet -
Lyu, Mengting
author_sort Lyu, Mengting
collection NTU
description The doctoral thesis investigates the differential responses of foreign investments to terrorist incidents across various host countries. While existing literature has explored the relationship between terrorism and FDI, few studies have systematically examined cross-national variations in the impact of terrorism on foreign direct investment (FDI). The thesis addresses this gap by exploring the factors that contribute to this heterogeneity and establishing a theoretical framework to comprehend the global differences in terrorism’s impact on FDI inflows. The central argument posits that while terrorism can be detrimental to FDI, its actual impact diminishes when offset by factors such as credibility and political involvement. Using a combination of quantitative and qualitative methods, including two extensive games, several empirical analyses, and a comparative case study in Yemen, the thesis finds that terrorism can exert a negative influence on inward FDI. Nevertheless, the negative impact is mitigated by a higher level of institutional credibility in host countries, manifested through a better institutional environment, stronger property rights protection, more bilateral investment treaties, and political involvement from home countries, particularly China, as measured by joining the BRI membership and frequent foreign visits of Chinese leaders. The thesis contributes to the literature by explaining the heterogeneity of terrorism’s influence through a theoretical framework of FDI determinants, unpacking the effect of political involvement in shaping investment incentives, and exploring the influence of investments from China on regional securities.
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spelling ntu-10356/1797182024-09-04T07:56:36Z Detangling terrorism's impact on foreign investment: how do credibility and political involvement matter Lyu, Mengting - S. Rajaratnam School of International Studies Su-Hyun Lee isshlee@ntu.edu.sg Social Sciences Terrorism Foreign direct investment Institutions The Belt and Road Initiative Credibility Political involvement The doctoral thesis investigates the differential responses of foreign investments to terrorist incidents across various host countries. While existing literature has explored the relationship between terrorism and FDI, few studies have systematically examined cross-national variations in the impact of terrorism on foreign direct investment (FDI). The thesis addresses this gap by exploring the factors that contribute to this heterogeneity and establishing a theoretical framework to comprehend the global differences in terrorism’s impact on FDI inflows. The central argument posits that while terrorism can be detrimental to FDI, its actual impact diminishes when offset by factors such as credibility and political involvement. Using a combination of quantitative and qualitative methods, including two extensive games, several empirical analyses, and a comparative case study in Yemen, the thesis finds that terrorism can exert a negative influence on inward FDI. Nevertheless, the negative impact is mitigated by a higher level of institutional credibility in host countries, manifested through a better institutional environment, stronger property rights protection, more bilateral investment treaties, and political involvement from home countries, particularly China, as measured by joining the BRI membership and frequent foreign visits of Chinese leaders. The thesis contributes to the literature by explaining the heterogeneity of terrorism’s influence through a theoretical framework of FDI determinants, unpacking the effect of political involvement in shaping investment incentives, and exploring the influence of investments from China on regional securities. Doctor of Philosophy 2024-08-19T08:36:32Z 2024-08-19T08:36:32Z 2024 Thesis-Doctor of Philosophy Lyu, M. (2024). Detangling terrorism's impact on foreign investment: how do credibility and political involvement matter. Doctoral thesis, Nanyang Technological University, Singapore. https://hdl.handle.net/10356/179718 https://hdl.handle.net/10356/179718 10.32657/10356/179718 en This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License (CC BY-NC 4.0). application/pdf Nanyang Technological University
spellingShingle Social Sciences
Terrorism
Foreign direct investment
Institutions
The Belt and Road Initiative
Credibility
Political involvement
Lyu, Mengting
Detangling terrorism's impact on foreign investment: how do credibility and political involvement matter
title Detangling terrorism's impact on foreign investment: how do credibility and political involvement matter
title_full Detangling terrorism's impact on foreign investment: how do credibility and political involvement matter
title_fullStr Detangling terrorism's impact on foreign investment: how do credibility and political involvement matter
title_full_unstemmed Detangling terrorism's impact on foreign investment: how do credibility and political involvement matter
title_short Detangling terrorism's impact on foreign investment: how do credibility and political involvement matter
title_sort detangling terrorism s impact on foreign investment how do credibility and political involvement matter
topic Social Sciences
Terrorism
Foreign direct investment
Institutions
The Belt and Road Initiative
Credibility
Political involvement
url https://hdl.handle.net/10356/179718
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