Template-type: ReDif-Paper 1.0 
Author-Name: Frenken, Jonas Hub
Author-Email: jh.frenken@alumni.maastrichtuniversity.nl
Author-workplace-name: UNU-MERIT, and Maastricht University
Author-Name: Mbuvi, Dorcas
Author-Email: mbuvi@merit.unu.edu
Author-workplace-name: UNU-MERIT, and Maastricht University
Title: Country risk, FDI flows and convergence trends in the context
	 of the Investment Development Path
Abstract:Based on the identification of two transition phases within the 
	 Investment Development Path (IDP), this study explores the relationship 
	 between country risk and foreign direct investment (FDI) over time and 
	 in relation to the process of economic convergence between emerging and 
	 developed economies. The findings suggest that both economic - and 
	 business environment risk factors are closely related to FDI flows. 
	 Furthermore, it is found that as countries progress through the various 
	 stages of the IDP, economic convergence comes together with similar 
	 trends of convergence in economic - and business environment risk 
	 exposure. These simultaneous long-term developments plausibly contribute 
	 to the convergence of countries in terms of in- and outward FDI flows 
	 during the later stages of the IDP.
Keywords: Country risk, foreign direct investment, FDI, investment flows,
	 convergence, investment development path, emerging economices, developing
	 economies
Classification-JEL: F21, F23, F43, O11, O16
Series: UNU-MERIT Working Papers
Creation-Date: 20170119
Number: 2017-005
File-URL: https://unu-merit.nl/publications/wppdf/2017/wp2017-005.pdf
File-Format: application/pdf
File-Size: 275 kb
Handle: RePEc:unm:unumer:2017005