Tina Das and Casey DiRienzo have their paper “Assessing Terrorist Risk and FDI Using Relative Information Measures” accepted for publication in Applied Economics Letters. The paper is co-authored with Anthony Mancuso from the SAS Institute.
Using the five sub-indices of the World Market Research Center’s Global Terrorism Index, the paper explores how the different dimensions of terrorist risk impact the inflow of foreign direct investment using a Shannon information measure of relationship. The results suggest that a country’s proven ability to prevent terrorist activity has the most significant impact on investment decisions in regard to foreign direct investment.