How Do Geopolitical Risks Affect Government Investment? An Empirical Investigation
Tarih
2020Yazar
BİLGİN, MEHMET HÜSEYİN
KARABULUT, Gökhan
GÖZGÖR, GİRAY
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The paper examines the effects of geopolitical risks, measured by a new index for geopolitical risk, on general government investment (gross fixed capital formation). It uses panel data for 18 countries for the period from 1985 to 2015. Using panel fixed-effects and the corrected least squares dummy variable estimators, results indicate that geopolitical risks seem to exert a positive effect on government investment.
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