How Do Geopolitical Risks Affect Government Investment? An Empirical Investigation

Received: 14 Jan 2020, Revised: 18 Jan 2020, Accepted: 22 Apr 2020, Available online: 18 June 2020, Version of Record: 18 June 2020

Mehmet Huseyin Bilgin
,
Giray Gozgor
&
Gokhan Karabulut

Abstract


The paper examines the effects of geopolitical risks, measured by a new index for geopolitical risk, on general government investment (gross fixed capital formation). It uses panel data for 18 countries for the period from 1985 to 2015. Using panel fixed-effects and the corrected least squares dummy variable estimators, results indicate that geopolitical risks seem to exert a positive effect on government investment.
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“Authors state no conflict of interest”


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This research received no external funding or grants


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