PT  - JOURNAL ARTICLE
AU  - Escaleras, Monica
AU  - Register, Charles A.
TI  - Natural Disasters and Foreign Direct Investment
AID  - 10.3368/le.87.2.346
DP  - 2011 May 01
TA  - Land Economics
PG  - 346--363
VI  - 87
IP  - 2
4099  - http://le.uwpress.org/content/87/2/346.short
4100  - http://le.uwpress.org/content/87/2/346.full
SO  - Land Econ2011 May 01; 87
AB  - The world’s population has witnessed the concurrence of two powerful global trends: an unprecedented growth in foreign direct investment (FDI) and an increase in natural disasters. Since investment decisions are based on an evaluation of expected risks and returns, we consider whether FDI decisions are influenced by natural disasters. We do so by considering the relation between FDI in 94 countries between 1984 and 2004 and the number of disasters striking those countries. Across a variety of empirical tests that control for two-way fixed effects we find natural disasters to be negatively and statistically significantly associated with a country’s FDI. (JEL Q54)