2011Unpublished venueRequires access

The Country Risk and Foreign Direct Investment:Review and Prospects

Hai Wang

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Abstract

The country risk,a new type of risk associated with FDI,is one of the most important factors that impact FDI.Especially with the recent turbulent financial and political situation in the international communality, the impact of country risk on FDI has become increasingly evident.In this paper,we consolidate the latest research results about the relationship between country risk and FDI,which include the meaning of the definition of country risk,the research literature of assessment on country risk and the relationship between country risk and FDI.This paper indicates that the research of foreign scholars for about country risk analysis is mainly empirical studies,less theoretical analysis and still remains at point of view of taking risk of developing countries as a source of research, so we suggest that expand the content of country risk,endogenou the country risk and increase the risk of the national perspective.

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What this paper is about

The country risk,a new type of risk associated with FDI,is one of the most important factors that impact FDI.Especially with the recent turbulent financial and political situation in the international communality, the impact of country risk on FDI has become increasingly evident.In this paper,we consolidate the latest research results about the relationship between country risk and FDI,which include the meaning of the definition of country risk,the research literature of assessment on country risk and the relationship between country risk and FDI.This paper indicates that the research of foreign scholars for about country risk analysis is mainly empirical studies,less theoretical analysis and still remains at point of view of taking risk of developing countries as a source of research, so we suggest that expand the content of country risk,endogenou the country risk and increase the risk of the national perspective.

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Available abstract

The country risk,a new type of risk associated with FDI,is one of the most important factors that impact FDI.Especially with the recent turbulent financial and political situation in the international communality, the impact of country risk on FDI has become increasingly evident.In this paper,we consolidate the latest research results about the relationship between country risk and FDI,which include the meaning of the definition of country risk,the research literature of assessment on country risk and the relationship between country risk and FDI.This paper indicates that the research of foreign scholars for about country risk analysis is mainly empirical studies,less theoretical analysis and still remains at point of view of taking risk of developing countries as a source of research, so we suggest that expand the content of country risk,endogenou the country risk and increase the risk of the national perspective.

Key concepts: Country risk, Foreign direct investment, Political risk, Financial risk management, Business, Empirical research, Financial risk, Risk management

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