Table 3

Variable description and data source of PRI

CategoryVariable nameDescriptionSource
Transfer and expropriation riskCVRisk of unilateral contract modification or cancellation and outright expropriation of foreign-owned assetsICRG
PDRisk associated with receiving and exporting payments from the host country due to political impedimentsICRG
PRRisk associated with the difficulty of transferring profits out of the host country due to political impedimentsICRG
IFDegree of restrictions as well as rules imposed on foreign investment in a host country due to political reasonsIEF
ERRAnnual percentage change in the exchange rate of the national currency against the US$ due to political reasonsICRG
Institutional riskGUExtent to which the cabinet coalesces around the government's general policy goalsICRG
LSExtent to which the government can realize its policy programme through the legislative arm of governmentICRG
PSLevel of support for the government and/or its leader, based on credible opinion pollsICRG
PRPDegree to which a host country's laws protect private property rightsIEF
GISystemic corruption of host country government institutions and decision-makingIEF
Political violence riskETDegree of tension attributable to racial, national or language divisionsICRG
ECRisk to the incumbent government from the foreign actionICRG
ICPolitical violence in the country and its impact on governanceICRG
MPMilitary's involvement in politicsICRG
RTReligious tensionsICRG

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