How Do Geopolitical Risks Affect Government Investment? An Empirical Investigation


BİLGİN M. H. , GÖZGÖR G. , KARABULUT G.

DEFENCE AND PEACE ECONOMICS, cilt.31, ss.550-564, 2020 (SSCI İndekslerine Giren Dergi) identifier identifier

  • Cilt numarası: 31 Konu: 5
  • Basım Tarihi: 2020
  • Doi Numarası: 10.1080/10242694.2018.1513620
  • Dergi Adı: DEFENCE AND PEACE ECONOMICS
  • Sayfa Sayıları: ss.550-564

Özet

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.