Publication Date
January 1999
Recommended Citation
Lee, B. C. and Powell, J. G., Valuation of Foreign Direct Investment in the Presence of Political Risk, Department of Economics, University of Wollongong, 1999.
https://ro.uow.edu.au/commwkpapers/11
Abstract
Investments in a country are subject to risks stemming from the same political events and government policies. Therefore it is possible to construct a portfolio which mimics the income profile of a particular FDI project using assets with readily observable prices. This paper provides a general risk replication model for valuing FDI projects in the presence of political risk.
COinS
Publication Details
Lee, BC and Powell, JG, Valuation of foreign direct investment in the presence of political risk, Working Paper 99-8, Department of Economics, University of Wollongong, 1999.