Impact of Terrorism on Foreign Direct Investment: Analysis of BRICS countries
| Název práce v češtině: | Dopad terorismu na přímé zahraniční investice: Analýza zemí BRICS. |
|---|---|
| Název v anglickém jazyce: | Impact of Terrorism on Foreign Direct Investment: Analysis of BRICS countries |
| Klíčová slova: | Terrorism, Impact, Foreign Direct Invesment, BRICS, Panel Data, Fixed Effects |
| Klíčová slova anglicky: | Terrorism, Impact, Foreign Direct Invesment, BRICS, Panel Data, Fixed Effects |
| Akademický rok vypsání: | 2018/2019 |
| Typ práce: | bakalářská práce |
| Jazyk práce: | angličtina |
| Ústav: | Institut ekonomických studií (23-IES) |
| Vedoucí / školitel: | doc. Ing. Tomáš Cahlík, CSc. |
| Řešitel: | skrytý - zadáno vedoucím/školitelem |
| Datum přihlášení: | 02.05.2019 |
| Datum zadání: | 02.05.2019 |
| Datum a čas obhajoby: | 09.06.2021 09:00 |
| Datum odevzdání elektronické podoby: | 03.05.2021 |
| Datum proběhlé obhajoby: | 09.06.2021 |
| Oponenti: | Mgr. Nikol Poláková |
| Kontrola URKUND: | |
| Seznam odborné literatury |
| Todd Sandler and Walter Enders. 2008. “Economic Consequences of Terrorism in Developed and Developing Countries: An Overview”. Terrorism, Economic Development, and Political Openness: 17-47
Zvi Eckstein and Daniel Tsiddon. 2004. “Macroeconomic consequences of terror: theory and the case of Israel”. Journal of Monetary Economics 51(5):971-1002 Konstantinos Drakos and Ali M. Kutan. 2003. “Regional Effects of Terrorism on Tourism in Three Mediterranean Countries”. Journal of Conflict Resolution 47(5):621-641 Walter Enders, Adolfo Sachsida, Todd Sandler. 2006. “The Impact of Transnational Terrorism on U.S. Foreign Direct Investment”. Political Research Quarterly 59 (4):517-531 Brock Blomberg, Gregory Hess and Athanasios Orphandies. 2003. “The Macroeconomic Consequences of Terrorism”. Journal of Monetary Economics 51 (5) |
| Předběžná náplň práce |
| Research question and motivation:
I am going to study the following research question: “Does terrorism have significant negative impact on FDI inflows in BRICS countries?” The definition of “terrorism” varies a lot in different sources. One can define it as the mean of applying pressure and violence on local governments and countries by targeting specific groups of people in order to achieve some economic, political or religious objectives. Several research have been conducted to study the effects of terrorist attacks on economies. To exemplify, Eckstein and Tsiddon (2004) have found out that terror activities have a significant negative impact on GDP per capita, investment and exports. Beyond this, terrorism has been proved to affect tourism as well by Drakos and Kutan (2003). According to Enders, Sachsida and Sandler (2006), there is a small but significant impact of terrorist acts on the stock of U.S. FDI in the OECD countries. Another interesting finding is, presumably, the evidence that terrorism lowers investment, whereas it increases government spending (Blomberg, Hess & Orphandies, 2003). At the core of these studies is to find out the relationship between terrorism and economic activities. In this thesis, I will shed light on the impact of terrorism and several other macroeconomic variables on FDI inflows in emerging economies, as developed countries are more prone to limited and temporary macroeconomic impacts of terrorist acts due to distribution of resources across different sectors (Sandler & Enders, 2008). For this purpose, I will examine the BRICS countries namely, Brazil, Russia, India, China, and South Africa. Contribution: There are several works analysing different factors and trends affecting FDI inflows in BRICS, however, no research examining rapport between terrorism and foreign direct investments in this group of countries has been found to my knowledge. That’s why, my study aims to fill this gap in the existing literature by analyzing relation between terrorism and FDI over 26 year period in the aforementioned countries including some other important macroeconomic variables, thus resulting in better understanding of peculiarity of FDI in these fast-growing countries. Methodology: For my thesis, I am going to combine datasets for terror incidents with datasets derived for FDI and other macroeconomic variables such as GDP per capita, exports, imports etc. in order to answer my research question. My analysis will be based on panel data estimation comprising the period between 1992 and 2018. For terrorist acts, I am going to collect data from Global Terrorism Database (GTD). On the other hand, data for FDI and macroeconomic variables will be derived from The World Bank’s World Development Indicator (WDI). Outline: Abstract I. Introduction II. Literature Review III. FDI and Its Determinants IV. Role of Terrorism V. Data and Methodology VI. Results VII. Conclusion |
| Předběžná náplň práce v anglickém jazyce |
| Research question and motivation:
I am going to study the following research question: “Does terrorism have significant negative impact on FDI inflows in BRICS countries?” The definition of “terrorism” varies a lot in different sources. One can define it as the mean of applying pressure and violence on local governments and countries by targeting specific groups of people in order to achieve some economic, political or religious objectives. Several research have been conducted to study the effects of terrorist attacks on economies. To exemplify, Eckstein and Tsiddon (2004) have found out that terror activities have a significant negative impact on GDP per capita, investment and exports. Beyond this, terrorism has been proved to affect tourism as well by Drakos and Kutan (2003). According to Enders, Sachsida and Sandler (2006), there is a small but significant impact of terrorist acts on the stock of U.S. FDI in the OECD countries. Another interesting finding is, presumably, the evidence that terrorism lowers investment, whereas it increases government spending (Blomberg, Hess & Orphandies, 2003). At the core of these studies is to find out the relationship between terrorism and economic activities. In this thesis, I will shed light on the impact of terrorism and several other macroeconomic variables on FDI inflows in emerging economies, as developed countries are more prone to limited and temporary macroeconomic impacts of terrorist acts due to distribution of resources across different sectors (Sandler & Enders, 2008). For this purpose, I will examine the BRICS countries namely, Brazil, Russia, India, China, and South Africa. Contribution: There are several works analysing different factors and trends affecting FDI inflows in BRICS, however, no research examining rapport between terrorism and foreign direct investments in this group of countries has been found to my knowledge. That’s why, my study aims to fill this gap in the existing literature by analyzing relation between terrorism and FDI over 26 year period in the aforementioned countries including some other important macroeconomic variables, thus resulting in better understanding of peculiarity of FDI in these fast-growing countries. Methodology: For my thesis, I am going to combine datasets for terror incidents with datasets derived for FDI and other macroeconomic variables such as GDP per capita, exports, imports etc. in order to answer my research question. My analysis will be based on panel data estimation comprising the period between 1992 and 2018. For terrorist acts, I am going to collect data from Global Terrorism Database (GTD). On the other hand, data for FDI and macroeconomic variables will be derived from The World Bank’s World Development Indicator (WDI). Outline: Abstract I. Introduction II. Literature Review III. FDI and Its Determinants IV. Role of Terrorism V. Data and Methodology VI. Results VII. Conclusion |