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Article
Publication date: 26 October 2020

Imtiaz Arif, Amna Sohail Rawat and Lubna Khan

This research intends to determine the role of terrorism in defying foreign direct investment (FDI) in top terror effected economies.

Abstract

Purpose

This research intends to determine the role of terrorism in defying foreign direct investment (FDI) in top terror effected economies.

Design/methodology/approach

Panel data on FDI and terrorism from top terror effected economies spanning from 1987 to 2018 were used and the relationship for whole sample was investigated. Later the sample period was divided into pre (1987–2001) and post 9/11 (2002–2018) subsample and same relationship was tested to investigate the normalization of terror effect on FDI. The method of Pooled Mean Group (PMG) was used to test the hypothesis.

Findings

The results showed a negative but statistically insignificant impact of terrorism on the FDI inflows in the long run. Later the sample period was divided into pre (1987–2001) and post 9/11 (2002–2018) subsample. The empirical estimates for pre and post 9/11 periods indicated a negative and statistically significant relationship between terrorism and FDI for pre 9/11 period, and a negative but statistically insignificant relationship between the two variables for post 9/11 period.

Originality/value

The findings suggest several important policy implications for the terror affected countries and are further discussed in the study.

Details

Journal of Economic Studies, vol. 48 no. 5
Type: Research Article
ISSN: 0144-3585

Keywords

Article
Publication date: 15 March 2019

Imtiaz Arif and Amna Sohail Rawat

The purpose of this paper is to assess the impact of trade and financial sector openness and their simultaneous openness on financial development of South Asia.

Abstract

Purpose

The purpose of this paper is to assess the impact of trade and financial sector openness and their simultaneous openness on financial development of South Asia.

Design/methodology/approach

To serve the purpose, a panel data set of four South Asian economies, namely, India, Pakistan, Sri Lanka and Bangladesh, was constituted for the period spanning from 1996 to 2015. Along with the conventional panel unit root test and co-integration test, pooled mean group estimations were used to formulate the empirical findings.

Findings

The findings suggested a significant negative impact of financial openness and significant positive impact of trade openness on the financial development of South Asia. The empirical evidence did not support simultaneous openness of trade and financial sector for the studied region.

Originality/value

The study contributes to the existing literature by analyzing the effect of trade and financial openness on financial development of South Asia. The study provides substantial evidence to the stakeholders for formulating policies that can boost financial development of the region.

Details

South Asian Journal of Business Studies, vol. 8 no. 1
Type: Research Article
ISSN: 2398-628X

Keywords

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