The Differential Impact of Political Uncertainty on Investment Decisions in Foreign and Domestic Firms in Turkey

Publikation: KonferencebidragPaperForskningpeer review

Abstract

We test two hypothesis with two different indicators of political risk about the influence political uncertainty has on investments in Turkey. The first hypothesis is that foreign firms invest more. The second is that foreign firms also invest more under a scenario of increasing political risk. We only find support for the first hypothesis, while for the second results show that it is only foreign owned firms in Turkey that experience higher investment adjustment cost due to political risk. The results are robust to endogeneity, different indicators of political risk and different measures of foreign capital participation.
OriginalsprogEngelsk
Publikationsdato2020
StatusUdgivet - 2020
BegivenhedAllied Social Science Association/American Economic Association, Annual Meeting: Middle East Economic Association - Marriott Marquis San Diego Marina, San Diego, USA
Varighed: 3 jan. 20205 jan. 2020
https://www.aeaweb.org/conference/

Konference

KonferenceAllied Social Science Association/American Economic Association, Annual Meeting
LokationMarriott Marquis San Diego Marina
LandUSA
BySan Diego
Periode03/01/202005/01/2020
Internetadresse

Emneord

  • Foreign direct investment
  • investment adjustment cost
  • relative performance
  • political risk
  • uncertainty
  • firm-level panel data

Citer dette

Jensen, C., & Dreyer, J. K. (2020). The Differential Impact of Political Uncertainty on Investment Decisions in Foreign and Domestic Firms in Turkey. Afhandling præsenteret på Allied Social Science Association/American Economic Association, Annual Meeting, San Diego, USA.