The purpose of the study is to assess the impact of political and economic risks and their components on FDI inflows to the Pacific Rim countries in 1994–2022. The Pacific Rim countries accounted for more than half of the accumulated volume of global FDI inflows, with the United States and China leading the way. FDI inflows to the Pacific Rim countries were determined in the long term by risks in the political and economic spheres, which were assessed based on the corresponding indices of political risk and economic freedom and their components. High values of these indices indicate low risk of the country and vice versa. The assessments showed that risk reduction had a positive ef- fect on attracting FDI to the Pacific Rim countries: a 1% increase in the values of the composite indices of political risk and economic freedom contributed to an increase in FDI inflows by 0.24% and 0.17%, respectively. The assessments of risk components indicated that the key points for creating long-term conditions for attracting FDI to the Pacific Rim countries were: building a strong and harmonious state that does not conflict with other countries; low tax burden and an increase in the share of the private sector in the economy. However, in modern conditions, the growth of various restrictions can fragment FDI flows, distorting the long-term impact of political and economic risks on attracting FDI to the countries of the Pacific Rim.
FDI inflow, political risk index, economic freedom index, governance stability and violence index, govern- ment size index, Pacific Rim countries
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