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Does Geopolitical Tension Affect Bilateral Foreign Direct Investment?
by Aamer Husain Abstract This paper examines whether geopolitical tensions affect bilateral foreign direct investment (FDI). Using global news event data, I construct a novel dyadic measure of geopolitical distance and estimate a panel model with country-year and dyad fixed effects across 39,700 dyad-year observations from 2016 to 2023. Geopolitical distance reduces FDI positions by […]
The Future of Economic Geopolitics: Network Effects in Intercultural Trade
By Joshua Curtis Using a regression discontinuity design on a gravity model of trade among 36 Middle Eastern and East Asian countries between 1980 and 2014, this study demonstrates network effects in trade. A small improvement in trade between subsets of two cultural blocs diminishes the effect of cultural similarity on trade between all members […]
