Izvestiya of Saratov University.
ISSN 1994-2540 (Print)
ISSN 2542-1956 (Online)


fixed effect model

Political Risk as a Factor of Foreign Direct Investment into Transition Economies

Foreign Direct Investment (FDI) is one of the most important resources of developing countries’ economic modernization. According to international investors, political risk is one of the major deterrents to investment in emerging markets. Opinions about the significance of this influence are different depending on the considered period. The latest crisis could make adjustments in the investment policy. Nevertheless, some developing countries show a very significant amount of FDI attracted.