.... This paper investigates the political factors behind financial crises and recessions. Design/methodology/approach Using variables from the ICRG rating system, logistic panel regressions are run to determine whether or not the political risk variables explain country crises. Findings Results disclose...

... or non-OECD members to see whether there is any difference in the nature of the effect. The study keeps other possible determinants of FDI – market size, growth rate of real GDP, trade openness, infrastructural facilities as control variables while considering the effect of underlying political risk...