Influence and Estimation of Geopolitical Risk on FDI in Eastern European Economies Cover Image

Утицај и процена геополитичког ризика на стране директне инвестиције у источноевропским економијама
Influence and Estimation of Geopolitical Risk on FDI in Eastern European Economies

Author(s): Kai Liu, Yanshan Lin, Jingyi Li
Subject(s): National Economy, Supranational / Global Economy, Political economy, Geopolitics
Published by: Институт за међународну политику и привреду
Keywords: geopolitical risks; FDI; Eastern Europe.

Summary/Abstract: In the current complex international situation, especially under the influence of the Russian-Ukrainian conflict, the inflow of FDI in Eastern European countries is seriously affected by geopolitical risks. However, there is a lack of research on this subject in Eastern Europe. Based on FDI inflow data in Eastern European countries and the political risk ratings of the ICRG from 2009 to 2020, this paper investigates the effect of geopolitical risks on FDI inflow to Eastern Europe using simple linear regression. It has been found that geopolitical risks have a significant negative impact on FDI inflows in Eastern European countries. However, further studies have found that signing RTAs can help alleviate this negative effect; actively carrying out bilateral trade or investment agreements is conducive to the development of FDI in host countries

  • Issue Year: 74/2023
  • Issue No: 1189
  • Page Range: 59-80
  • Page Count: 22
  • Language: Serbian