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Thessaloniki, October 31 s t , 2012 MA in Politics and Economics of Contemporary Eastern and South Eastern Europe Department of Balkan, Slavic and Oriental Studies University of Macedonia

Topic: “Foreign Direct Investment and Country Risk: What kind of Interaction?” Supervisor: Professor D. Kyrkilis

Stavroula Samara stav_samara@windowslive.com

Foreign Direct Investment and Country Risk

Table of Contents
Abstract…………………………………………………………………………………………………………………….4 Introduction………………………………………………………………………………………………………………4 Foreign Direct Investment…………………………………………………………………………………………6 The Definition……………………………………………………………………………………………………………6 The Types………………………………………………………………………………………………………………….8 The Multinational Corporations………………………………………………………………………………..9 The Effects………………………………………………………………………………………………………………11 The Final Remarks…………………………………………………………………………………………………..13 Country Risk……………………………………………………………………………………………………………14 The Definition………………………………………………………………………………………………………….15 Various approaches of the literature on country risk (table)……………………………………17 The Historical Background………………………………………………………………………………………17 Country Risk Types and Measurements…………………………………………………………………..18 The Factors……………………………………………………………………………………………………………..22 Country Risk Assessment…………………………………………………………………………………………23 Risk Measures (table)………………………………………………………………………………………………25 The Methods…………………………………………………………………………………………………………..27 How does Country Risk matter for FDI?.......................................................................29 FDI and Country Risk: A Research……………………………………………………………………………33 The Data…………………………………………………………………………………………………………………33

2

Foreign Direct Investment and Country Risk

The Concept Model and Hypothesis…………………………………………………………………………33 The Empirical Estimation…………………………………………………………………………………………35 The Analysis of

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