TY - JOUR
T1 - Country risk spillovers in the Middle East
T2 - A prelude to the road map for peace and the war on terror
AU - Alon, Ilan
AU - McKee, David L.
PY - 2005
Y1 - 2005
N2 - Political upheavals in the Middle East are not uncommon. They include domestic conflicts, such as the Islamic revolution of Iran, and external hostilities, such as the Arab-Israeli wars. These events affect the perceptions of foreign investors who shy away from these countries since they seek stable environments for their moneys. While the effect of political risk events on foreign direct investment have been investigated by numerous researchers, the influence of one country's political occurrences on investors' perceptions of a neighboring country has been largely ignored. The purpose of this study is to investigate such an influence by examining the political risk spillovers between selected nations of the Middle East. Nations selected include Egypt, Iran Iraq, Israel, Jordan, Kuwait and Saudi Arabia. The paper finds that strong correlations exist in bankers' perceptions of country risk in these countries.
AB - Political upheavals in the Middle East are not uncommon. They include domestic conflicts, such as the Islamic revolution of Iran, and external hostilities, such as the Arab-Israeli wars. These events affect the perceptions of foreign investors who shy away from these countries since they seek stable environments for their moneys. While the effect of political risk events on foreign direct investment have been investigated by numerous researchers, the influence of one country's political occurrences on investors' perceptions of a neighboring country has been largely ignored. The purpose of this study is to investigate such an influence by examining the political risk spillovers between selected nations of the Middle East. Nations selected include Egypt, Iran Iraq, Israel, Jordan, Kuwait and Saudi Arabia. The paper finds that strong correlations exist in bankers' perceptions of country risk in these countries.
KW - Correlations
KW - Country risk
KW - Middle East
KW - Political risk
KW - Spillovers
UR - http://www.scopus.com/inward/record.url?scp=22944446413&partnerID=8YFLogxK
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AN - SCOPUS:22944446413
SN - 1331-677X
VL - 18
SP - 1
EP - 13
JO - Economic Research-Ekonomska Istrazivanja
JF - Economic Research-Ekonomska Istrazivanja
IS - 1
ER -