Abstract:

With liberalization showing its impact on commercial life, the importance of DYY has begun to be understood by the countries. In particular, developing countries implement appropriate strategies and policies to attract foreign capital flows to their economies. The study analyzed the relationship between peace and direct foreign investments in developing countries (Turkey, Russia, Brazil, India, Nigeria, Pakistan and Indonesia) and the 2006-2017 period. The data on peace is measured by the Global Peace Index, published since 2007 by the Institute of Economics and Peace. The study also used economic growth, market size and trade transparency control variables. The long-term relationship between the variables was analyzed by panel matching tests Pedroni (1999) and Westerlund (2007). The results of the integration test showed that the variables were moving together over a long period of time. The FMOLS and CCEMG estimates have shown that increasing peace levels in the country have a positive impact on foreign direct entries in developing countries. The increase in the level of peace in the country will speed up the entry of foreign capital into the country.

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