Bearing the Brunt: The Effect of Terrorism on the Foreign Direct Investment in South Asian Association for Regional Cooperation (SAARC) Nations

May combine two claims.

In the manufacturing sector of SAARC countries, government regulation and law and order situation have no significant impact on FDI.

“the table shows that the government regulation as well as law and order situation in the country has no foot prints over FDI in the region.”

The quote only partly states this claim.

In the manufacturing sector of SAARC countries, reducing tariff on international trade raises FDI by 60.6% in the long run.

“reducing the tariff on the international trade the FDI can be raise by the rate of 60.6% in the long run that is a very significant impact over a long run.”

The quote only partly states this claim.

In the manufacturing sector of SAARC countries, overcoming terrorism can boost FDI by 35.9% in the long run.

“if the government overcome the issue of terrorism in the country, it can boost up the FDI by 35.9% in the long run.”

May combine two claims.

The panel cointegration test confirms a long-run association among the variables, meaning all variables are cointegrated in the long run.

“The panel cointegration test confirms the long run association among the variables.It means that all variables are cointegrated in the long run.”

May combine two claims.

In the transport and communication sector of SAARC countries, law and order situation and government regulation have no impact on FDI.

“there is no impact of law and order situations and government regulation with the improvement of FDI in the transportation and communication sectors in the country.”

Probably not a substantial claim: may not pass S3 (load-bearing). May combine two claims.

FDI inflows help increase growth in host countries, especially developing nations, by decreasing unemployment, obtaining advanced technology, shrinking the saving-investment gap, boosting production, and increasing market competition.

“FDI inflows help to increase the growth level in the host country especially if the country is a developing nation then FDI inflows help to decrease unemployment, obtain advanced technology, shrink the gap between saving and investment, boost production, and market competition (Khan, 2008).”

• cites Khan, 2008 sourceNot checked — no full text of the source

May combine two claims.

Terrorism in its different forms brings uncertainty among investors and leads them to make less direct investment.

“Terrorism in its different forms brings uncertainty amongst investors and they make a less direct investment (Schneider and Frey, 1985).”

• cites Schneider and Frey, 1985 sourceNot checked — no full text of the source

May combine two claims.

Due to terrorism, Pakistan lost 33% of its real national income, equal to an annual 1% GDP loss per capita, and reductions in FDI and foreign worker remittances are consequences of this loss.

“Due to terrorism, Pakistan lost 33% of its real national income, which is equal to annually 1% GDP loss per capita.Reduction in FDI and foreign worker remittances are the consequences of this loss (Mehmood, 2013).”

• cites Mehmood, 2013Not matched

  Couldn’t be matched to a paper in Crossref, so it can’t be checked.

May combine two claims.

In an open economy, terrorist attacks affect the allocation of productive capital and increase uncertainty and risk about returns on investment, so foreign investors shift investment to countries where they feel safer about their profit.

“In the case of an open economy, the terrorist attacks will affect the allocation of productive capital, increase uncertainty and risk about returns on investment so foreign investors shift investment across the countries where they feel safer about their profit (Abadie & Gardeazabal, 2008)”

• cites Abadie & Gardeazabal, 2008Not matched

  Couldn’t be matched to a paper in Crossref, so it can’t be checked.

May combine two claims.

South Asia pays heavy direct and indirect costs of terrorism, including destruction of infrastructure, crops, and industrial units, deterioration of economic activities, loss of confidence, brain drain, counter-terrorism expenditure, low FDI inflows, and heavy economic and transaction costs.

“South Asia is paying heavy costs of terrorism in the direct and indirect form of infrastructure, crops and industrial unit destruction, deterioration of economic activities, and loss of confidence in the economy thus as a result economy must face long term brain drain, expenditure on counter-terrorism, low level of FDI inflows, heavy economic and transaction costs (Kumar, 2012).”

• cites Kumar, 2012Not matched

  Couldn’t be matched to a paper in Crossref, so it can’t be checked.

Probably not a substantial claim: may not pass S3 (load-bearing).

In developing economies, an increase in violence in the host country induces a shift from horizontal FDI to vertical FDI.

“In developing economies, an increase in violence in the host country induces to shift in horizontal FDI to vertical FDI (Bloomberg & Mody, 2002).”

• cites Bloomberg & Mody, 2002Not matched

  Couldn’t be matched to a paper in Crossref, so it can’t be checked.

Probably not a substantial claim: may not pass S3 (load-bearing). May combine two claims.

The causes of terrorism in South Asia are poor law and order, income inequality, poverty, unemployment, and illiteracy.

“The causes of terrorism in South Asia are poor law and order, income inequality, poverty, Unemployment, illiteracy rate (Zeb, et al., 2014).”

• cites Zeb, et al., 2014Not matched

  Couldn’t be matched to a paper in Crossref, so it can’t be checked.

Probably not a substantial claim: may not pass S3 (load-bearing).

There is a significant negative correlation between FDI inflows in manufacturing, trade, and repair and construction sectors and terrorist activities in developed nations.

“There is a significant negative correlation between FDI inflows in manufacturing, trade, and repair and construction sector s and terrorist activities in developed nations (Agrawal, 2011).”

• cites Agrawal, 2011Not matched

  Couldn’t be matched to a paper in Crossref, so it can’t be checked.

Probably not a substantial claim: may not pass S3 (load-bearing). May combine two claims.

Countries consider FDI a crucial tool for economic growth because through FDI they get skills, modern technology, income, and access to world markets.

“Countries take much interest in FDI because they consider it as a crucial tool for economic growth because through FDI countries get a skill, space for modern technology, generate income and get access to world markets (Herzer and Nunnenkamp, 2011).”

• cites Herzer and Nunnenkamp, 2011Not matched

  Couldn’t be matched to a paper in Crossref, so it can’t be checked.

Classified as probably not a substantial claim.

Investors tend to invest only when they feel their investment is safe and secure.

“Investors tend to invest only when they feel about their investment is safe and secure (Rasheed & Tahir, 2012).”

• cites Rasheed & Tahir, 2012Not matched

  Couldn’t be matched to a paper in Crossref, so it can’t be checked.

May combine two claims.

Terrorism is a serious threat to FDI and economic growth for the economies in the SAARC region.

“This empirically establishes the fact that terrorism is a serious threat to FDI and economic growth for the economies in this region.”

• AssumptionRests on an assumption: Terrorism not only destroys the financial system but also damages physical infrastructure and investors' confidence.

May combine two claims.

In India, a study of 510 farmers found a significant negative relationship between terrorism and level of investment for the long period, but for the short period the relationship is statistically insignificant.

“According to a study conducted by Singh (2013) on investment data of 510 farmers in India, a significant negative relationship is found between terrorism and level of investment for the long period.But for short period this relationship is statistically insignificant.”

• cites Singh (2013)Not matched

  Couldn’t be matched to a paper in Crossref, so it can’t be checked.

Probably not a substantial claim: may not pass S3 (load-bearing). May combine two claims.

According to Ali (2010), in Pakistan political instability and terrorist attacks hit the manufacturing sector badly, and its share to GDP remains very low at 18.2 percent in recent years.

“According to the findings of Ali (2010) in Pakistan political instability and terrorist attacks hit manufacturing sector badly, its share to GDP remains very low i.e. 18.2 percent in last few years.”

• cites Ali (2010)Not matched

  Couldn’t be matched to a paper in Crossref, so it can’t be checked.

Probably not a substantial claim: may not pass S3 (load-bearing), S4 (based). May combine two claims.

The communication sector, being urban or service-oriented, is directly targeted by a significant negative impact of terrorist events because urban sectors are usually targeted through terrorist activities.

“The communication sector which is considered as the urban or service-oriented sector is directly targeted by a significant negative impact of terrorist events because urban sectors are usually targeted through terrorist activities.”

Probably not a substantial claim: may not pass S3 (load-bearing), S4 (based). May combine two claims.

More FDI deposited in transportation and communication sectors means greater approachability to transportation and communication services and tends to reduce mobility and time cost in various sectors.

“more FDI deposited in transportation and communication sectors mean a greater approachability to transportation and communication services and this tends to reduce the mobility and time cost in various sectors.”

• AssumptionRests on an assumption: FDI inflows depend on business-friendly parameters.

Probably not a substantial claim: may not pass S3 (load-bearing), S4 (based).

The transport sector is also an urban sector where large attacks on transport and infrastructure are observed.

“The transport sector is also an urban sector usually large attacks on transport and infrastructure are observed.”

Probably not a substantial claim: may not pass S3 (load-bearing).

This study's results are consistent with the study conducted by Ahmad et al. (2014).

“This study is per the results of the study conducted by (Ahmad, et al., 2014).”

• cites Ahmad, et al., 2014Not matched

  Couldn’t be matched to a paper in Crossref, so it can’t be checked.

May combine two claims.

In the SAARC region, law and order situation boosts economic prosperity because it is positively linked with FDI inflow.

“According to the empirical outcome of this study law and order situation in the region boosts the economic prosperity across the region as it is positively linked with the FDI inflow of south Asian countries.”

• AssumptionRests on an assumption: FDI increases where there is safety to the invested amount of investors.

May combine two claims.

In the SAARC region, the manufacturing sector is the most affected sector by terrorism, with an effect of 76 percent, because it received more FDI.

“the most affected sector is the manufacturing sector where the effect of terrorism is 76 percent, as this sector received more FDI in SAARC.”

May combine two claims.

The study's results are consistent with Rasheed and Tahir (2012), Iqbal et al. (2014), and Shah and Faiz (2015), who documented a negative impact of terrorism and tariff on FDI while law and order improves FDI in the overall business, manufacturing, and transport and communication sectors.

“Our results are consistent with the outcomes of Rasheed and Tahir (2012), Iqbal et. al. (2014), and Shah and Faiz (2015) who documented the negative impact of terrorism and tariff on the FDI in the country while the law and order situation improves the level of FDI in the overall business sector, manufacturing and transport and communication sectors of the country.”

• cites Rasheed and Tahir (2012)Not matched

  Couldn’t be matched to a paper in Crossref, so it can’t be checked.

• cites Iqbal et. al. (2014)Not matched

  Couldn’t be matched to a paper in Crossref, so it can’t be checked.

• cites Shah and Faiz (2015)Not matched

  Couldn’t be matched to a paper in Crossref, so it can’t be checked.

Probably not a substantial claim: may not pass S3 (load-bearing).

The OLI paradigm is empirically examined by Galan and Gonzalez-Benito (2001) for Spanish MNCs.

“This paradigm is empirically examined byGalan and Gonzalez-Benito (2001) for Spanish MNC.”

• cites Galan and Gonzalez-Benito (2001)Not matched

  Couldn’t be matched to a paper in Crossref, so it can’t be checked.

Probably not a substantial claim: may not pass S3 (load-bearing), S4 (based). May combine two claims.

Transportation is another sector affected by terrorism, and large terrorist attacks on transportation and its infrastructure are usually observed in terrorist-affected countries because it is an easy target.

“Another affected sector is the transportation and large terrorist attacks on transportation and its infrastructures are usually observed in terrorist-effected countries, as it is an easy target for terrorists.”

Probably not a substantial claim: may not pass S3 (load-bearing), S4 (based).

Maximum inflow of FDI in physical infrastructure such as roads and highways reduces the cost of production in various sectors.

“This maximum inflow of FDI in the physical infrastructure in the forms of roads and highways etc. reduces the cost of production in various sectors.”

• AssumptionRests on an assumption: FDI inflows depend on business-friendly parameters.

Probably not a substantial claim: may not pass S3 (load-bearing), S4 (based). May combine two claims.

Tariff and law and order situation have proved to be effect factors for most economic sectors.

“Because tariff and law and order situation of the country has proved to effect factors for most of the economic sectors.”

May combine two claims.

Lowering terrorism accompanied by a better law and order situation boosts economic prosperity in the South Asian region.

“Hence, we conclude that lowering terrorism accompanied by a better law and order situation boost economic prosperity in the South Asian region.”

• AssumptionRests on an assumption: FDI increases where there is safety to the invested amount of investors.