Chen, Yu-Fu; Funke, Michael - Department of Economics Studies, University of Dundee - 2007
In this paper we analyse the impact of policy uncertainty on foreign direct investment strategies. We also consider the … the value to a firm of waiting to invest and/or disinvest, when payoffs are stochastic due to political uncertainty and … investments are partially reversible. Across the board we find that political uncertainty can be very detrimental to FDI decisions …