U.S.-Israel Foreign Direct Investment and Terrorism. ACES Working Paper No. 9, 2007

The Israeli economy has been subjected to a continuous flow of terror since its creation. The focus of our study is how terrorism's impacts the level of production of the high-tech sector. The two main objectives and novelties of the paper are: First our paper can be a major contribution to as yet a new subfield in applied microeconomics attempting to measure the impact of terror on economic issues like FDI and Industry output in general and that focused on the High-Tech industries. Second our research is designed to help us understand the impact of terror news, especially on U.S citizens' reactions to terror in Israel. Our terror variable isn't how many bodies or but how many negative articles regarding terror there are in leading American news paper. We focus on the volatility clustering of terror information arrivals in major US financial papers and its impact on high-tech production and FDI to Israel.

Law and Foreign Direct Investment. IES WORKING PAPER 4/2011

In this paper we examine the effect of law on foreign direct investment outflows with a specific interest in the relationship between international investment law and domestic private property laws. Our results indicate that FDI investor is indifferent to host country property rights, hence shareholder protection by law is not a significant determinant of FDI outflows. We argue that FDI, in contrast with other types of capital flows, can effectively mitigate the agency problem through majority ownership and control, hence reduce exposure to ex-post expropriation by the affiliate. On the other hand, FDI investor remains exposed to risk of expropriation by the host government and is strongly sensitive to the enforcement of law in the host country. In contrast with recent literature we conclude that there are no causal relationship between bilateral investment treaties and FDI.