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

Publikation: KonferencebidragPaperForskningpeer review

Resumé

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
Publikationsdato1 okt. 2019
StatusUdgivet - 1 okt. 2019
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. (2019). 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.
Jensen, Camilla ; Dreyer, Johannes Kabderian. / 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.
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The Differential Impact of Political Uncertainty on Investment Decisions in Foreign and Domestic Firms in Turkey. / Jensen, Camilla; Dreyer, Johannes Kabderian.

2019. Afhandling præsenteret på Allied Social Science Association / American Economic Association, Annual Meeting, San Diego, USA.

Publikation: KonferencebidragPaperForskningpeer review

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AU - Dreyer, Johannes Kabderian

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N2 - 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.

AB - 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.

KW - Foreign direct investment

KW - investment adjustment cost

KW - relative performance

KW - political risk

KW - uncertainty

KW - firm-level panel data

KW - Foreign direct investment

KW - investment adjustment cost

KW - relative performance

KW - political risk

KW - uncertainty

KW - firm-level panel data

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Jensen C, Dreyer JK. The Differential Impact of Political Uncertainty on Investment Decisions in Foreign and Domestic Firms in Turkey. 2019. Afhandling præsenteret på Allied Social Science Association / American Economic Association, Annual Meeting, San Diego, USA.