FDI and Terrorism: An Analysis of the Impact of the Intifada on Foreign Direct Investment in the State of Israel

The natural flows of economic activities are often disturbed by political military exogenous events that cause the various economic activities to change course (Fishelson , 1993).Over the last century, such events have been dominated by religious fanaticism, ethnic nationalist conflicts and politica...

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Main Author: Glozer, Eyal
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2006
Online Access:https://eprints.nottingham.ac.uk/20527/
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author Glozer, Eyal
author_facet Glozer, Eyal
author_sort Glozer, Eyal
building Nottingham Research Data Repository
collection Online Access
description The natural flows of economic activities are often disturbed by political military exogenous events that cause the various economic activities to change course (Fishelson , 1993).Over the last century, such events have been dominated by religious fanaticism, ethnic nationalist conflicts and political ideologies, propelling a transnational phenomenon of international terrorism. This paper, using the Palestinian Israeli conflict ,Intifada, as such terrorist events, empirically elucidates, in accordance with a unique dataset on terrorism, the impact of terrorism on foreign direct investment into the state of Israel. Global media has played a predominant role in the amplification of the perception, explicating the widely help perception of risk in the state of Israel. The centrality of this external influence (subjective perception), to changes in the decision making process of investors are associated with a redirection of economic activity away from foreign investment spending in the short term. Thus potential damage on the Israeli economy in the short term is substantial and posits important factors to the firm, whilst long term detrimental impact is negligible. The findings indicate that despite the terror against the population of Israel, the proximity of the Israel economy to the global economy has broader implications to the foreign investor, and thus mediate the amount of inflow the State of Israel receive.
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spelling nottingham-205272018-01-22T16:05:41Z https://eprints.nottingham.ac.uk/20527/ FDI and Terrorism: An Analysis of the Impact of the Intifada on Foreign Direct Investment in the State of Israel Glozer, Eyal The natural flows of economic activities are often disturbed by political military exogenous events that cause the various economic activities to change course (Fishelson , 1993).Over the last century, such events have been dominated by religious fanaticism, ethnic nationalist conflicts and political ideologies, propelling a transnational phenomenon of international terrorism. This paper, using the Palestinian Israeli conflict ,Intifada, as such terrorist events, empirically elucidates, in accordance with a unique dataset on terrorism, the impact of terrorism on foreign direct investment into the state of Israel. Global media has played a predominant role in the amplification of the perception, explicating the widely help perception of risk in the state of Israel. The centrality of this external influence (subjective perception), to changes in the decision making process of investors are associated with a redirection of economic activity away from foreign investment spending in the short term. Thus potential damage on the Israeli economy in the short term is substantial and posits important factors to the firm, whilst long term detrimental impact is negligible. The findings indicate that despite the terror against the population of Israel, the proximity of the Israel economy to the global economy has broader implications to the foreign investor, and thus mediate the amount of inflow the State of Israel receive. 2006 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/20527/1/06MSclixeg1.pdf Glozer, Eyal (2006) FDI and Terrorism: An Analysis of the Impact of the Intifada on Foreign Direct Investment in the State of Israel. [Dissertation (University of Nottingham only)] (Unpublished)
spellingShingle Glozer, Eyal
FDI and Terrorism: An Analysis of the Impact of the Intifada on Foreign Direct Investment in the State of Israel
title FDI and Terrorism: An Analysis of the Impact of the Intifada on Foreign Direct Investment in the State of Israel
title_full FDI and Terrorism: An Analysis of the Impact of the Intifada on Foreign Direct Investment in the State of Israel
title_fullStr FDI and Terrorism: An Analysis of the Impact of the Intifada on Foreign Direct Investment in the State of Israel
title_full_unstemmed FDI and Terrorism: An Analysis of the Impact of the Intifada on Foreign Direct Investment in the State of Israel
title_short FDI and Terrorism: An Analysis of the Impact of the Intifada on Foreign Direct Investment in the State of Israel
title_sort fdi and terrorism: an analysis of the impact of the intifada on foreign direct investment in the state of israel
url https://eprints.nottingham.ac.uk/20527/