Publication:
Risk Is Relative: Heterogeneous Responses to Institutional Risks for Foreign Investment

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dc.contributor.authorBeazer, Quintin
dc.contributor.authorBlake, Daniel J.
dc.contributor.rorhttps://ror.org/02jjdwm75
dc.date.accessioned2024-07-08T13:14:19Z
dc.date.available2024-07-08T13:14:19Z
dc.date.issued2021
dc.description.abstractAre economic actors equally sensitive to institutional conditions? While existing research recognizes that institutions can have varying effects on actors' interests,the implicit assumption is that actors are homogeneous in how sensitive they are to their institutional environment. We investigate this assumption in the context of foreign direct investment,arguing that actors from countries with weaker institutions will be less affected by information about host country institutional conditions-both good and bad. We test this argument using survey data from a diverse group of managers-in-training at an international business school. We find that when asked to evaluate a potential foreign investment location,respondents from developing countries are significantly less sensitive to information about the host country's courts than their counterparts from developed economies. In contrast,we find that economic actors from both developed and developing countries respond similarly to information about the stability of economic policies. The findings suggest that sensitivity to the risks and safeguards of certain institutional conditions vary systematically across actors,depending on both the home environment to which economic actors have been exposed and the type of host institution. © 2021 The Author. Published by Oxford University Press on behalf of the International Studies Association.
dc.description.peerreviewedyes
dc.description.statusPublished
dc.formatapplication/pdf
dc.identifier.citationBeazer, Q. H., & Blake, D. J. (2021). Risk is relative: heterogeneous responses to institutional risks for foreign investment. International Studies Quarterly, 65(3), 594-605. https://doi.org/10.1093/isq/sqab043.
dc.identifier.doihttps://doi.org/10.1093/isq/sqab043
dc.identifier.issn1468-2478
dc.identifier.officialurlhttps://www.scopus.com/inward/record.uri?eid=2-s2.0-85118244964&doi=10.1093%2fisq%2fsqab043&partnerID=40&md5=bced5122d7fae6ec131eba4150ba962f
dc.identifier.urihttps://hdl.handle.net/20.500.14417/3055
dc.issue.number3
dc.journal.titleInternational Studies Quarterly
dc.language.isoen
dc.page.final605
dc.page.initial594
dc.page.total0
dc.publisherOxford University Press
dc.relation.departmentStrategy
dc.relation.entityIE University
dc.relation.schoolIE Business School
dc.rightsAttribution 4,0 International
dc.rights.accessRightsinfo:eu-repo/semantics/openAccess
dc.rights.urihttps://creativecommons.org/licenses/by/4.0/
dc.subject.othercapital market
dc.subject.othereconomic policy
dc.subject.otherfinancial system
dc.subject.otherforeign direct investment
dc.subject.otherinstitutional framework
dc.subject.otherresearch work
dc.titleRisk Is Relative: Heterogeneous Responses to Institutional Risks for Foreign Investment
dc.typeinfo:eu-repo/semantics/article
dc.version.typeinfo:eu-repo/semantics/acceptedVersion
dc.volume.number65
dspace.entity.typePublication
person.identifier.scopus-author-id55325145100
person.identifier.scopus-author-id56016542600
relation.isAuthorOfPublication3e43dfda-4510-4887-b8d5-72900cba7590
relation.isAuthorOfPublication.latestForDiscovery3e43dfda-4510-4887-b8d5-72900cba7590
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