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The purpose of this paper is to develop and test theory regarding a geographic halo effect, whereby foreign investors draw overly broad impressions about a country based on high levels of violent crime in specific locations impacting foreign direct investment (FDI) across the country.

The authors analyze the impact of homicides on FDI by source country into Mexican states from 2001 to 2015. They estimate fixed effect and dynamic panel models controlling for several determinants of FDI at the state level and the potential geographic spillover of such violence from adjacent states.

The authors find robust support for the existence of a geographic halo effect caused by violent crime. The results show that the highest number of state homicides is associated with lower FDI across states.

The research provides some evidence of the potential role of cognitive biases on FDI decisions. In addition, its focus on Latin America brings attention to an understudied region in international business research.

For practitioners engaged in FDI decisions, the results imply the need to be more aware of potential cognitive biases that may influence them.

Few papers have explored the influence of cognitive biases on FDI.

The purpose of this paper is to inform funders and potential funders alike of the likely outcomes of their financial contributions. Additionally, the authors reported on the assessment of the underlying logic model or theoretical underpinnings of what the authors will term the “Habitat Model.”

This study utilized a one-shot case study design to obtain data. In a one-shot case study the experimental group is exposed to the independent variable (X), then observations of the dependent variable (O) were made. No observations were made before the independent variable was introduced. A one-shot case study design was necessary as this is the first impact study conducted by BAHFH because of the changes within BAHFH over the years as well as the lack of consistent archival data on families and operations.

Most of the feedback obtained from stakeholders was positive. Many of the demographic variables showed significant improvement in partner family life style since moving into a Habitat house.

The findings of this study provide evidence of positive economic, social, and psychological impacts on families participating in BAHFH homeownership and on their communities. It also showed substantial economic impacts on the communities served. Furthermore, this study showed that other stakeholders in the process were substantially and positively impacted. Finally, this study pointed to a number of things that BAHFH needed to change such as homeowner education, financial counseling, and the opening of a local ReStore.

The current study provides data that provide evidence of positive economic, social, and psychological impacts on families participating in BAHFH homeownership opportunities.