Country risk in foreign direct investmentsimilarities and differences with country risk in exports

  1. Dans Rodríguez, Noemi 1
  1. 1 Departamento de Economía Aplicada V. Universidad Complutense de Madrid
Revista:
Nómadas: Critical Journal of Social and Juridical Sciences

ISSN: 1578-6730

Año de publicación: 2016

Título del ejemplar: Vol. Especial: Mediterranean Perspectives

Número: 49

Páginas: 83-98

Tipo: Artículo

DOI: 10.5209/NOMA.53538 DIALNET GOOGLE SCHOLAR lock_openAcceso abierto editor

Otras publicaciones en: Nómadas: Critical Journal of Social and Juridical Sciences

Resumen

Country Risk in exports is derived from the capacity of payment and the losses that insolvency can cause to the creditors. Instead, the country risk in foreign direct investment is related to breach of contract, deprivation of property rights, damage to assets or cessation of activities. The operations of foreign direct investment (FDI) are different in nature to exports. Therefore, regarding country risks some questions arise: is country risk different also?, which are the common risks and which are specific risks to exports and FDI? Both share five types of country risk: the transfer risk, the impossibility of converting currencies, the exchange rate risk, the risk of war or political violence and sovereign risk. The risk of expropriation is specific to foreign direct investment and does not affect trade. This paper makes a comparative analysis of the risks in exports and foreign direct investment. The aim is to find out to what extent they differ. The conclusions are valid for multinational firms and developing countries with a growth strategy based on FDI.

Referencias bibliográficas

  • Berne Union (2012): Yearbook 2012. Ed.Exporta Publishing & Events Ltd. Londres.
  • Bridgman, P.W. (1959): “The Logic of Modern Physics after Thirty Years”, Daedalus. MIT Press. 1959, Vol. 88 nº 3, 518-526
  • Colex (2006): Diccionario Jurídico Básico, Editorial Constitución y Leyes, S.A. Madrid.
  • Collier, P y Hoeffler, A. (2002): “Greed and Grievance in Civil Wars”, CSAE WPS 2002/01
  • Collier, P y Hoeffler, A. (2004): “Greed and Grievance in Civil Wars”, Oxford Economic Papers, 56: 563-595
  • Constitución española (1978). Consultado en http://www.congreso.es/consti/constitucion/indice/titulos/articulos.jsp?ini=33&tip
  • o=2
  • Dans, N (2012): “El riesgo país en la Inversión Extranjera Directa: concepto y modalidades de riesgo”. Papeles de Europa, 2012, nº 25. Disponible en http://revistas.ucm.es/index.php/PADE/article/view/41100
  • Di John, J. (2011): “Failed Status” in Sub – Saharan Africa: A Review of the Literature”, Real Instituto Elcano. Ari 5/2011. Madrid.
  • Diebold, F.X., Doherty, N.A., y Herring, R.J. (2010): The Known, the Unknown and the Unknowable in Financial Risk Management. Measurement and Theory Advancing Practice. Princeton Unviersity Press, Nueva Jersey. 2010, 390 pp.
  • Doherty, N.A. (2000): Integrated Risk Management: Techniques and Strategies for Reducing Risks. Mac Graw Hill, Nueva York.
  • Gomory, R. (1995): “The Known, the Unknown and the Unknowable”, Scientific American.
  • Gordon, K. (2008): “Investment Guarantees”, OECD Investment Policy Perspectives. OECD, Paris.
  • Herber, M.E. (1992): “Foreign Direct Investment in Country Risk Analysis”, International Economic Consultants. Ed Rouledge, Londres y Nueva York.
  • Holton, G.A. (2004): “Defining Risk”, Financial Annalist Journal. Vol. 60, Nº 6, 19-25
  • Hyden, G y Agborsangaya-Fiteu, O. (2011): “Diagnostic Tools for Governance in Fragile States: Lessons, Trends and Suggestions”. Social Development Department. Banco Mundial, Julio 2011.
  • Iranzo, S. (2008): “Delving into Country Risk”, Documentos ocasionales nº 08082. Banco de España. Madrid, 2008.
  • James, D. (2004): “Political Risk Insurance after September 11 and the Argentine Crisis: An Underwriter’s View from London”, International Political Risk Management: The Brave New World. Grupo Banco Mundial, MIGA, Washington DC.
  • Knight, F. (2006): Risk, Uncertainty and Profit. Ed. Cosimo Classics. 1ª ed. 1921.
  • Li, Q. (2006) “Political Violence and Foreign Direct Investment” Regional Economic Integration, Research in Global Strategic Management, Vol. 12, 231–255.
  • Li, Q. (2009): “Democracy, Autocracy and Expropriation of Foreign Direct Investment”. Pennsylvania State University.
  • Lloyd´s (2011): Annual Report 2010. Society of Lloyd´s. Midas Press Plc. Londres
  • Markovitz, H. (1952): “Portfolio Selection”, Journal of Finance. Vol 7. Nº 1, 77-91.
  • Meldrum, D. H. (2000): “Country Risk and Foreign Direct Investment”, Business Economics. NABE, National association of Business Economics, Washington.
  • MIGA, Multilateral Investment Guarantee Agency (2011): World Investment and Political Risk. Grupo Banco Mundial, Washington.
  • Moosa, I.A. (2002): Foreign Direct Investment: Theory and Practice. Palgrave Macmillan. Nueva York, 2002, 329 pp.
  • Morel, F. (2010): “Credit Insurance in Support of Internacional Trade. Observations throughout the Crisis” Export Credit Insurance Report. Berne Union. Londres.
  • OECD/DAC (2008): “Concepts and Dilemas of State Building in Fragile Situations. From Fragility to Resilence”, OECD/DAC Discussion paper. París.
  • OECD (2009): “OECD Studies in Risk Management. Innovation in Country Risk Management”, OECD/DAC Discussion paper. Paris.
  • Putzel, J. (2005): “Globalization, Liberalization and Prospects for the State”, International Political Science Review. Enero 2005, Vol. 26, nº1, 5-16.
  • Putzel, J. (2006): “War, State Collapse and Reconstruction”, Working Paper 1 (2). Crisis States Research Centre.
  • RAE, Real Academia Española de la Lengua (2001): Diccionario. 22º Edición. Consultado en http://www.rae.es/rae.html
  • Ross, M. (2004): “What Do We Know about Natural Resources and Civil War?”, Journal of Peace Research, Vol. 41, no. 3, 337–356. Sage Publications.
  • Sambanis, N. (2002): “A Review of Recent Advances and Future Directions in the Quantitative Literature on Civil War”, Defence and Peace Economics, 13:3, 215-243
  • Simon J. D. (1989): “Revolution Without Guerrillas”, The Rand Corporation Series. Santa Monica, California.
  • Simon, J.D. (1992): “Political Risk Analysis for International Banks and Multinational Enterprises” Country Risk Analysis. International Economic Consultants, Ed. Rouledge. Londres y N. York.
  • UNCTAD (2011): Best Practices in Investment for Development, Case Studies in FDI. United Nations. New York and Geneva, 2011.
  • Vilariño, A. (2001): Turbulencias Financieras y Riesgo de Mercado. Prentice Hall, Madrid, 2001, 300 pp.
Fuente de los datos: Dialnet