Political Risk: Concepts, Definitions, Challenges

Abstract

The present paper provides a synthetic overview of the history and latest developments in the field of political risk assessment for foreign investors. After reviewing the numerous definitions of political risk existing in the literature, "macro" and “micro” approaches to political risk assessment are discussed, with the purpose of highlighting their shortcomings and providing cues for discussion and further research. This version was circulated in occasion of the LUISS School of Government Annual Conference held on December 14th 2012, and dedicated to "Investing in the Age of Political Risks".The present paper provides a synthetic overview of the history and latest developments in the field of political risk assessment for foreign investors. After reviewing the numerous definitions of political risk existing in the literature, "macro" and “micro” approaches to political risk assessment are discussed, with the purpose of highlighting their shortcomings and providing cues for discussion and further research. This version was circulated in occasion of the LUISS School of Government Annual Conference held on December 14th 2012, and dedicated to "Investing in the Age of Political Risks".Refereed Working Papers / of international relevanc