Foreign Financial Flows and Terrorism

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Foreign Financial Flows and Terrorism

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dc.contributor.author Anwar, Amar
dc.contributor.author Mughal, Mazhar
dc.date.accessioned 2016-04-28T13:29:02Z
dc.date.available 2016-04-28T13:29:02Z
dc.date.issued 2016-04-28
dc.identifier.uri http://hdl.handle.net/10398/9291
dc.description.abstract This study examines the differential response of various international financial flows to the post 9/11 episode of terrorism in the context of a South Asian country. Using monthly data for the period from January 2003 to December 2014, we analyze the impact of terrorism in Pakistan on the inflows of foreign direct investment (FDI), portfolio investments, and migrant remittances. We find that FDI decreases substantially as a result of terrorist activity, whereas portfolio investments show little change. In contrast, migrant remittances show a significant increase. These differences are also evident in financial flows from major source regions and top sending countries. The results are robust to the use of alternative definitions and indicators of terrorism as well as the inclusion of various macroeconomic variables. These findings indicate that foreign private capital flees an economy suffering from terrorism whereas migrant remittances are the only financial flows that increase during difficult times. en_US
dc.format.extent 34 en_US
dc.language eng en_US
dc.relation.ispartofseries Copenhagen Discussion Papers;56
dc.subject.other Terrorism en_US
dc.subject.other 9/11 en_US
dc.subject.other FDI en_US
dc.subject.other Portfolio investment en_US
dc.subject.other Remittances en_US
dc.subject.other Developing countries en_US
dc.subject.other Pakistan en_US
dc.title Foreign Financial Flows and Terrorism en_US
dc.type wp en_US
dc.contributor.corporation Copenhagen Business School. CBS en_US
dc.contributor.department Asia Research Centre en_US
dc.contributor.departmentshort ARC en_US
dc.contributor.departmentuk Asia Research Centre en_US
dc.contributor.departmentukshort ARC en_US
dc.publisher.city Frederiksberg en_US
dc.publisher.year 2016 en_US
dc.title.subtitle A Case Study of Pakistan en_US


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