Effects of political risks on Japanese outward foreign direct investments: a panel data analysis
Effects of political risks on Japanese outward foreign direct investments: a panel data analysis
Author(s): Ivan Deseatnicov, Akiba HiroyaSubject(s): Business Economy / Management, International relations/trade, Transformation Period (1990 - 2010), Financial Markets
Published by: Editura Universităţii »Alexandru Ioan Cuza« din Iaşi
Keywords: foreign direct investments; multinational corporations; political risk;
Summary/Abstract: This paper empirically examines the effects of political risks on the Japanese outward Foreign Direct Investment (FDI) with a panel data of 30 countries for the period of 1995-2004. The estimation model is constructed on the basis of the OLI (ownership, location and internalization advantages) and Knowledge-Capital Models. Political risk variables are included as additional explanatory variables with market potential, wages, skilled workforce endowments, investment cost, trade cost and distance. We found that the model with interaction terms of these political risk factors with some traditional explanatory variables reasonably explains Japanese outward FDI flows.
Journal: Analele Ştiinţifice ale Universităţii »Alexandru Ioan Cuza« din Iaşi. Ştiinţe economice
- Issue Year: 58/2011
- Issue No: 1
- Page Range: 533-552
- Page Count: 20
- Language: English
