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Radu CHIOTAN
Academia de Studii Economice din Bucureşti
This article develops a transparent protocol for selecting and reporting geopolitical and political risk proxies in MENA-focused (Middle East and North Africa) foreign direct investment research. Risk measures are classified by conceptual coverage, temporal resolution, and data-generating process, with attention to measurement error, comparability, and interpretability trade-offs. A concise empirical illustration shows that estimated coefficients and significance levels can shift substantially across commonly used proxies, underscoring the need for standardized robustness reporting. A checklist and decision tree are presented to link research questions – such as short-run shocks versus persistent instability or domestic versus external risk – to proxy choice and recommended diagnostics. The paper aims to reduce arbitrariness in risk measurement and improve cross-study comparability in a region characterized by frequent security and diplomatic shocks.
ŒCONOMICA no. 2/2025
Keywords: foreign direct investment, Middle East and North Africa, geopolitical risk, political risk, risk measurement, proxy selection, robustness
JEL: C18, C52, D81, F21, F23
Measuring Risk for FDI Research in MENA: A Transparent Protocol for Proxy Selection and Robustness
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Octavian-Dragomir JORA
Academia de Studii Economice din Bucureşti
Loredana COSTINA
Academia de Studii Economice din Bucureşti
Adrian COROBANĂ
Academia de Studii Economice din Bucureşti
Emmanuel Olusegun STOBER
Academia de Studii Economice din Bucureşti
Radu CHIOTAN
Academia de Studii Economice din Bucureşti
Revista ŒCONOMICA
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