acrjouranal@gmail.com
|
FAQs
Human beings are living in a world where the degree of uncertainties is increasing with each passing day. We already had a barrage of problems like economic crisis, political instability, human negations like suspicion and ego, social issues and the classical economic problems of inflation, labour, inequalities and unemployment. To add to it, we now have the environmental issues, technological issues with the emergence of Artificial Intelligence and the never-ending wars raging across multiple parts of the globe. Humankind and countries cannot do away with the inherent pangs for expansion and growth. As they plan or actually expand to multiple countries, they have to tackle the inherent issue of political uncertainty.
Political risks may have several sources of origins like nationalism, other vendetta, social nudges, international ploys and many others. Thus, it is essential that companies and nations must brace themselves for this risk by taking up political risk insurance. We do not have sufficient literature around the same. To collate the entire data available, we took the sequencing techniques of searching for the articles through the database of Scopus.
Political risk is typically described as the threat to business interests caused by political instability or changes in government. It exists in every country across the globe, with its scale and nature differing from one country to another. Such risks can stem from government policy shifts, including alterations in controls over exchange rates and interest rates. Political risk can arise from actions taken by legitimate governments, such as implementing price controls, regulating output and activities, or imposing restrictions on currency and remittances. It may also stem from events beyond government control, including war, revolution, terrorism, labor strikes, and extortion.
Companies (and nations) with global footprints continue to be concerned about political risk. In reality, it is common for businesses to go for international markets in this era of globalization. Governments & Governance, regimes, regulatory frameworks, protectionism, punitive levies, socioeconomic conditions and mentalities have an impact on the conduct of business by a foreign company in one’s country.
Companies must obtain political risk insurance coverage in order to safeguard themselves against any monetary losses resulting from political difficulties. Broadly, this covers things like nationalization, violent takeovers, political violence, government changes, war and rioting, sovereign debt default, and significant changes to laws and taxation. It is possible for political risk and economic risk to be confused, but it is important to understand that economic risks such as inflation, currency rates and crises are not to be associated with political risks.
The traditional ways of accessing foreign investments have been by measuring the possible cash flows, market surveys, econometric analysis, testing comparative advantages and the like. They seldom consider the possibilities of political and social changes and the effects that they might bring. The discipline of PRI brings forth the importance of these points. It is imperative to have theoretical models in place and not just be reactive to changes in the environments as and when they happen (Simon, 1984).
Certain words that are specific to PRI and not typically used in the context of other general insurance packages should be used with caution while discussing the topic of PRI. Arbitration, breach of contract, civil strife damage, expropriation, inconvertibility, mediation, political risk, political risk management, and political violence damage are all significant from the perspective of the insurance company and the issuer.
Bibliometric Analysis is now a well-established research technique in information science. It converges the various aspects of Meta data (like keywords, authors, sources, publication date and other relevant academic details) of the relevant research databases. It has been found very useful in assessing the state of the field now and forecasting its future. Following the integration and correlation of this data, the analysis's findings can be presented in an understandable manner utilizing visual methods (X Jia et al, 2014).
2 Definitions and critical description
PRI has been a contentious topic and it does not have much literature review from a research point of view as we have seen in other themes. It has primarily been associated with business and issues related to political risk emanating from political issues. With long-term wars becoming standard and every country trying to promote globalisation of its companies, PRI has started coming into the lexicon of world leaders and corporates. The research on PRI will be incomplete without Political Risk. So when we line up research, definition and critical description around PRI, we must evaluate Political Risk too.
We find early research on this topic in 1970s but the literature available suggests that there has not been structured research. The definitions were not linked; there was absentia of coordination between few thesis on the said topic in the United States too. The definitions and the research was not coordinated on a chronological manner. Accordingly, few researchers of the like of Kobrin, Stephen (1978), Fitzpatrick, Mark(1983), Simon (1984), Friedman (1988), Chermack (1992), Jarvis (2008) tried to structure things first. In reality, measuring political risk is challenging; this has been opined by few researchers like Bremmer (2005); Henisz and Zelner (2010).
There is no universally accepted or definitive definition of risk, and the concept is often defined differently by different people. Additionally, risk is frequently misunderstood and used interchangeably with related terms like harm, hazard, threat, and uncertainty. Efforts, however has been taken to present in a chronological manner so that further researchers can evaluate and track the changes brought forward in the thoughts towards this subject.
|
Authors |
Year |
Definition / Critical Description |
|
Truitt, Fredrick J |
1970 |
Governments have a wide range of political and economic measures at their disposal to limit the activities of investors. |
|
Robock, Stefan H |
1971 |
Political instability should not be considered the same as political risk. For example, France after World War II and Brazil from 1947 to 1970 experienced frequent changes in leadership, making them politically unstable, yet they had relatively low levels of political risk. The acuteness of political risk was a function of the extent and severity of politically significant aggressive actions taking place within a society. |
|
Green, Robert T |
1972 |
Political instability is a key factor in assessing political risk. The methods used however are insufficient and highly variable. Metrics designed by political scientists are not suitable for businesses and do not facilitate comparisons for evaluating foreign investment opportunities. |
|
Kobrin, Stephen J |
1979 |
He suggested Political Risk to be the current and potential impact(s) of the political environment upon the operations of the firm.He believed that managers had the capacity to reduce the level of uncertainties. |
|
Fitzpatrick, Mark |
1983 |
Events like war have stimulated the evolution of a managerial function to access and evaluate the non-business environment. He outlined four categories related to the definitions of political risk: a Government intervention and the negative outcomes that result from such actions. b Political events, such as changes in leadership, shifts in power, instability, or restrictions imposed on a specific sector. c Changes within the business environment that result from political developments occurring externally and d Assessing it in relation to the broader environmental context. |
|
Torre, Jose de la and David, Neckar |
1986 |
A helpful approach for understanding political risk is to differentiate between the real challenges encountered by a foreign firm operating in a developing or industrialized country and the immediate sources of risk. |
|
Schmidt, David A |
1986 |
Political Risk refers to the implementation of host country policies that limit the business activities of a foreign investment. According to him, there are 3 sub-categories namely: “transfer risk” referring to the ability to make capital payments or repatriate profits; “operational risk,” referring to concerns related to local sourcing, content requirements, production, or ensuring business continuity.; “ownership control risk,” referring to concerns related to expropriation or seizure of assets. |
|
Tallman, Stephen B |
1988 |
Domestic conflict tended to produce a poor business climate with higher risks and curtailed FDI |
|
Kennedy, Charles R |
1988 |
Political Risk is a strategic, financial, or personal loss to a company resulting from non-market events or factors that impact the broader macroeconomic and political environment. This risk can stem from the regular actions of government bodies, regulatory agencies, or judicial systems, which influence market conditions or macroeconomic and political circumstances. However, it can also arise from disruptive political events such as terrorism, coups, riots, uprisings, secession, civil war, or violent political struggles—events that distort the normal functioning of political processes. |
|
Chaddick, Brad and Howell, Llewellyn, D |
1994 |
Political Risk refers to the potential for political decisions or events in a country to impact the business environment, causing investors to either lose money or earn less than anticipated when the investment was initially made. |
|
Perry, Maura B |
1996 |
Several factors within the political risk insurance market hinder insurers' performance and drive up the cost of the services they offer. Political risk is challenging to diversify because of very low number of political jurisdictions globally and the broad potential impact of political risk events. The varied nature of political risks and the unpredictable way in which claims occur necessitate that insurer invest resources in thoroughly understanding the risks they take on. Similar to how an insurer covering death from car accidents faces a greater research burden than one covering death from lightning strikes, providers of political risk insurance must carefully assess and comprehend the unique characteristics of each risk they insure. |
|
Fraser, Campbell and Zarkada-Fraser, Anna |
2002 |
Political risk refers to the overall negative impact of government actions, societal influences, or inaction on foreign businesses operating in or seeking to enter a country's market.Governments often take actions that create barriers or distort competition, limiting businesses' ability to operate as they would if they were free from such restrictions. |
|
Ikawa, Motomichi |
2004 |
The situation for investors and insurers is further complicated by the evolving nature of certain underlying risks in recent years. Traditionally, PRI covered risks tied to clearly political events, such as war, civil unrest, currency inconvertibility, and conventional expropriation. However, as noted by several experts who have examined many claims, it has become increasingly important to assess whether the host government had the ability to prevent a claim from arising in the first place. One challenge for investors and PRI providers is that privatization and decentralization are increasingly blurring the distinction between commercial and non-commercial risks, particularly when a public entity operates in a commercial role. |
|
Bevan, Alan A and Estrin, Saul |
2004 |
Political risk was not a significant factor in affecting FDI. Rather, the later was affected by labour costs, sizes of the home & source countries and proximity to the foreign country. |
|
Hamdani, Kausar and Liebers, Elise et al |
2005 |
PRI offers protection against losses caused by currency transfer restrictions, expropriation, and political violence. It is provided by national, multilateral, and private insurers, and is typically used by investors to manage country risks linked to emerging market debt, equity investments, and lending. For insurers, while PRI is a costly venture, it remains a profitable one. Political risks are categorized into: Currency inconvertibility, Political Violence and Confiscation, Expropriation & Nationalization (also known as CEN) |
|
Bremmer, Ian |
2005 |
Political risk is shaped by factors such as new legislation, the actions of leaders, and the emergence of popular movements—all elements that can either stabilize or destabilize a country politically. The relevance of a particular risk, however, varies depending on the investment decision's context. Political risk analysis is more subjective than economic analysis, requiring managers to consider not only see the visible trends but also the subtleties of society and even individual personality traits. |
|
Salorio, Eugene and Boddewyn, Jean et al |
2005 |
Political risk is primarily viewed as the likelihood of harmful actions by governments towards businesses. |
|
John, Molly |
2007 |
These are actions that negatively impact investments, for which the host country’s government is held legally accountable under international law. |
|
Busse, Matthias and Hefeker, Carsten |
2007 |
Political risk is dependent on the quality of political institutions and it has a huge bearing on FDI. Government stability, internal and external conflicts, corruption and ethnic divisions, rule of law, democratic governance and the effectiveness of the bureaucracy were the key factors that have a major influence on FDI. |
|
Gordon, Kathryn |
2008 |
PRI is an expensive proposition for any entity. It can only help in reducing risk. It may generate incentive effects in the host country that may undercut the importance of economic reforms. |
|
Althaus, C. |
2008 |
According to her, political risk is the calculation political actors (of western liberal-democracies) make before promoting a certain policy- i.e. the calculation of the “political cost” of decisions in terms of loss of votes in future elections. |
|
Moloo, Rahim and Khachaturian, Alex |
2010 |
A host country must assure the safety of the investing company / country in order to attract investments. Post-conflict economies present a particularly intriguing case study, as they frequently begin the process of creating new laws governing foreign investment. Political risk insurance is a dependable form of protection for foreign investors in post-conflict economies. This also encompasses government-backed foreign investment programs offered by the investors' home countries. |
|
Poulsen, Lauge N. Skovgaard |
2010 |
Bilateral Investment Treaties (BITs) have minimal influence on the coverage and pricing policies of political risk insurance (PRI) providers. Companies resort to BITs only when the problem has erupted rather than visiting them before initiating the investment. |
|
Conklin, David |
2011 |
Political risk includes the various governmental and political actions that are opposed to or conflict with business interests. The actions could include expropriation, regulations, tariffs, trade restrictions, corruption et al. He tries to bring an inter-connection between political risk, market intrusion, government regulation and economic freedom in which markets are seen as perfect and politics as a factor having a corrupting influence on markets. |
|
Restrepo, Diana and Correia, Ricardo et al |
2012 |
Events leading to political instability may be one time or it could be because of the realization of a process that has been developing over an extended period. |
|
Fagersten, Bjorn |
2015 |
Barring some research, it is primarily either anecdotal knowledge or raw macro-economic data |
|
Soopramanien, Ravi D |
2017 |
There are notable similarities between the protections offered by BITs and PRI products, especially concerning risks such as currency inconvertibility and expropriation. Companies must tactfully utilize both. The probability of claim redressal increases with the presence of BIT. |
|
Chevalier, Alain and Hirsch, Georges |
2017 |
It consists of various interconnected sources of risk, meaning that once the components are identified, a multicriteria approach must be used to produce an overall assessment.
|
|
Arel-Bundock, Vincent and Peinhardt, Clint et al |
2019 |
Common measurement parameters for evaluating the quantum of political risks are: aggregate FDI, cases of expropriation, number of investment disputes and insurance premiums. Five categories of risk are defined namely: inconvertibility of funds, expropriation, political violence, losses caused by rules imposed by host state and terrorism |
Table 1: Definition and Critical description
Source: Compiled byauthors
3 Methodology & Data
Scopus is an abstract and indexing database with full-text links and is published by Elsevier Co. The name, Scopus, has a unique origin. Apparently, it is taken from the bird, Hammerkop (Scopus umbretta), which incidentally had ability to navigate easily. (Burnham, Judy F, 2006). Scopus database has emerged to be a reliable database for research. It is useful for academic research for searching articles similar to one’s area of research and it has a comprehensive collation of knowledge on almost every possible area of research collated over the years. The collation is in the form of conference publications, academic articles, review articles, books, book reviews, editorial, book chapter and book series (Guz, A N and Rushchitsky, J J, 2009).
The development of research that eventually gave rise to the subfield of bibliometrics is traced from its origins up to 1969, when the term "bibliometrics" was introduced as an alternative to "statistical bibliography.” (Broadus, Robert, 1987).
Dataset
For the work, Scopus data base was searched on 03-Nov 2024. The steps involved in choosing the set of articles for review are as follows
|
|
|
|
|
|
|
|
|
|
|
|
Include |
Exclude |
Net |
|
|
|
Step 1 |
Search Scopus for "Political Risk Insurance" in the "Title, Abstract or Keyword" section |
1321 |
|
1321 |
|
|
|
Step 2 |
Filter & limit to "Articles" in "Document type" |
866 |
|
866 |
|
|
|
Step 3 |
Filter & limit to "English" in "Language" |
783 |
|
|
|
|
|
Step 4 |
Filter & limit to "Final" in "Publication Stage" |
770 |
|
|
|
|
|
Step 5 |
Filter & exclude "Undefined" in "Subject Area" |
|
2 |
768 |
|
|
|
Step 6 |
Filter & exclude "Trade Journal" in "Source Type" |
|
6 |
762 |
|
|
|
Step 7 |
Filter and manually exclude articles with errata in names & authors |
|
5 |
757 |
|
|
|
Table2: Steps undertaken for selecting articles
Since the total number available itself was too low, we did not undertake filtering; rather we limited ourselves to the language, articles, publication stage, and excluded only “trade journals” and “undefined” in subject area. We will in the future course of the paper restrict ourselves to the 757 articles finally selected.
4Analysis and interpretations
4.1Publications trends
Fig 1: Annual publications of articles
Source: Authors (basis details from data obtained through Table 2)
This gives the publications made every year. Since the total number of papers were very low with the search of keywords, we did not go for limiting the papers basis the number of years.
It is clear that there is no trend in the publications though we see an increment in the publications post 2006. 2020 was the only year when the number of publications had crossed 60.
4.2 Basis journal publications
|
Journal Name |
# of articles |
ISSN |
Scopus Indexed Year |
|
Social Science and Medicine |
14 |
ISSN:0277-9536 E-ISSN:1873-5347
|
from 1967 to 1980, from 1982 till date |
|
Geneva Papers on Risk and Insurance: Issues and Practice |
9 |
ISSN:1018-5895 E-ISSN:1468-0440
|
1999 |
|
Health Policy |
9 |
ISSN:0168-8510 E-ISSN:1872-6054
|
1984 |
|
PLoS ONE |
8 |
1932-6203 |
2006 |
|
Risk Management and Insurance Review |
8 |
ISSN:1098-1616 E-ISSN:1540-6296
|
2006 |
|
European Journal of Political Economy |
7 |
0176-2680 |
1985 |
|
International Journal for Equity in Health |
7 |
1475-9276 |
2002 |
|
World Development |
7 |
ISSN:0305-750X E-ISSN:1873-5991
|
1973 |
|
Economy and Society |
5 |
ISSN:0308-5147 E-ISSN:1469-5766
|
1972 |
|
Health Affairs |
5 |
ISSN:0278-2715 E-ISSN:1544-5208
|
1981 |
Table3: Top journals basis number of publications of articles
Source: Authors (basis details from data obtained through Table 2)
Unlike other topics, this topic does not have too many publications. However, the publications on this topic is happening in reputed journal which is indicative from the years of Scopus accreditation.
4.3 Basis article citations
The entire data base of 757 articles was searched for citations and the Top 10 articles with the highest citations were selected.
|
Title |
Authors |
Cited by |
Year |
Journal Name |
ISSN |
|
Acceptability of a COVID-19 vaccine among adults in the United States: How many people would get vaccinated? |
Reiter P.L.; Pennell M.L.; Katz M.L. |
809 |
2020 |
Vaccine |
0264-410X |
|
Adaptation options in agriculture to climate change: A typology |
Smit B.; Skinner M.W.
|
760 |
2002 |
Mitigation and Adaptation Strategies for Global Change |
1381-2386 |
|
Relationship between innovation capability, innovation type, and firm performance |
Rajapathirana R.P.J.; Hui Y.
|
568 |
2018 |
Journal of Innovation and Knowledge |
2530-7614 |
|
Limits to health care: Fair procedures, democratic deliberation, and the legitimacy problem for insurers |
Daniels N.; Sabin J.
|
497 |
1997 |
Philosophy and Public Affairs |
0048-3915 |
|
Political risk, democratic institutions, and foreign direct investment |
Jensen N.
|
334 |
2008 |
Journal of Politics |
1468-2508 |
|
Structural racism and myocardial infarction in the United States |
Lukachko A.; Hatzenbuehler M.L.; Keyes K.M.
|
236 |
2014 |
Social Science and Medicine |
1873-5347 |
|
Universal health insurance coverage for 1.3 billion people: What accounts for China's success? |
Yu H |
234 |
2015 |
Health Policy |
0168-8510 |
|
Rising powers and global governance: Negotiating change in a resilient status quo |
Kahler M.
|
220 |
2013 |
International Affairs |
1468-2346 |
|
Barriers to the care of persons with dual diagnoses: Organizational and financing issues |
Ridgely M.S.; Goldman H.H.; Willenbring M.
|
215 |
1990 |
Schizophrenia Bulletin |
0586-7614 |
|
The size and composition of government expenditure |
Shelton C.A.
|
208 |
2007 |
Journal of Public Economics |
0047-2727 |
Table3: Top articles basis citations
Source: Authors (basis details from data obtained through Table 2)
Barring 3 papers, most of the papers which have seen maximum citations are atleast ten years old.
4.4 Basis Journal Citations
This analysis shows which journals are the important journals from citation point of view making them the most sought after journal for any future researcher on the topic of PRI.
|
Journal Name |
Total Citations |
Publisher |
ISSN |
|
Vaccine |
910 |
Elsevier Ltd |
0264-410X |
|
Mitigation and Adaptation Strategies for Global Change |
760 |
Springer Nature |
1381-2386 |
|
Social Science and Medicine |
617 |
Elsevier |
ISSN:0277-9536 E-ISSN:1873-5347 |
|
Journal of Innovation and Knowledge |
568 |
Elsevier |
2530-7614 |
|
Philosophy and Public Affairs |
497 |
John Wiley & Sons |
0048-3915 |
|
Health Policy |
407 |
Elsevier |
ISSN:0168-8510 E-ISSN:1872-6054 |
|
Natural Hazards |
388 |
Springer |
0921-030X |
|
Journal of Politics |
364 |
University of Chicago Press |
ISSN:0022-3816 E-ISSN:1468-2508 |
|
Journal of Public Economics |
255 |
Elsevier |
0047-2727 |
|
Geneva Papers on Risk and Insurance: Issues and Practice |
229 |
Springer Nature |
ISSN:1018-5895 E-ISSN:1468-0440 |
Table 4: Top journals basis citations
Source: Authors (basis details from data obtained through Table 2)
The most impactful journal is “Vaccine” with 910 citations. The “Mitigation and Adaptation Strategies for Global Change” has 760 citations. “Social Science and Medicine” has 617 citations and 14 publications, making it the most productive journal on the list.
4.5 Basis Productive Co-Authors
This analysis shows which authors are the important ones from the number of publications point of view. In future if a researcher were to plan a research on PRI, he / she should be picking up literature from the papers of these authors as they have co-authored the most papers.
|
Authors |
Affiliation |
# of papers |
Citations |
|
Aregbeshola, Bolaji Samson; Khan, Samina Mohsin |
University of Lagos; Karolinska Institutet |
3 |
72 |
|
Metwally, AbdelmoneimBahyeldin Mohamed; Diab, Ahmed |
Prince Sultan University; Beni-Suef University |
3 |
26 |
|
Bernards, Nick |
University of Warwick |
2 |
31 |
|
Calomiris, Charles W. |
Columbia University |
2 |
185 |
|
Crews, Deidra C.; Bello, Aminu K.; Saadi, Gamal |
John Hopkins, John Hopkins; Cairo University |
2 |
11 |
|
Custer, W. |
Employee Benefit Research Institute |
2 |
2 |
|
Essel, R.; Mostert, F.J. |
Stellenbosch University; Stellenbosch University |
2 |
0 |
|
Grigg, Neil S. |
Colorado State University |
2 |
4 |
|
Kahler, Miles |
University of California |
2 |
273 |
|
Weinkle, Jessica |
University of North Carolina Wilmington |
2 |
21 |
Table 5: Topco-authors basis citations
Source: Authors (basis details from data obtained through Table 2)
4.6Author Keywords Analysis
This section describes the frequency of keywords and term co-occurrence that were used in each of the considered 757 papers. VOSviewer was used to denote the most commonly used keywords in the 757 papers and their connections. The network visualization of authors keywords shown in Figure 2 illustrates the relations between keywords that were found on PRI.
Fig 2: VosViewer image of author keywords
Source: VosViewer
There are 7 clusters and the important keywords are mentioned below
|
Cluster |
Top 3 keywords |
|
1 |
Covid 19, Ghana, Globa health |
|
2 |
Adverse selection, China, Crop Insurance |
|
3 |
Adaption, Climate Change, Germany |
|
4 |
Developing countries, Foreign Direct Investments, Political Risk |
|
5 |
Corporate Governance, Deposit Insurance, Globalisation |
|
6 |
Flod Insurance, Risk, Uncertainty |
|
7 |
Prevention, Solidarity |
Table 6: Top Author keywords
Source: VosViewer
4.7 Co-citation Analysis
Co-citation analysis is a method used to evaluate the relationships between scholarly articles by analyzing the patterns in which they are cited together. It primarily focuses on identifying scholarly papers that are frequently cited together, helping to uncover relationships and patterns between different works. (Donthu et al., 2021). Figure 3 displays the connections between cited authors, suggesting that these references are influential or conceptually related to the area of political risk insurance.
Minimum number of documents of an author was pegged to 2 and the minimum number of citations of an author was pegged at 0. 62 authors met the threshold.
The important authors were
|
Authors |
Documents |
Citations |
Total link strength |
|
Kane, Edward J |
2 |
210 |
5 |
|
Laeven, luc |
3 |
239 |
5 |
|
Lee, Chien-Chaing |
3 |
125 |
2 |
|
Chang, Chi-Hung |
2 |
96 |
2 |
Fig 3: VosViewer image of co-citation authors
Source: VosViewer
4.8 Bibliometric coupling analysis
Bibliographic coupling examines the relationships between publications to assess the importance of documents within a dataset, based on their position in the network relative to current or emerging trends in a research field.Bibliographic coupling happens when two documents reference the same third document, indicating that they may address a shared topic (Caputo, A., Pizzi, S., Pellegrini, M., and Dabic, M, 2021).
Minimum number of documents of an author was pegged to 2 and the minimum number of citations of an author was pegged at 1. 60 authors met the threshold.
The important authors were
|
Authors |
Documents |
Citations |
Total link strength |
|
Lawven, Luc |
3 |
239 |
268 |
|
Calomiris, Charles W |
3 |
214 |
184 |
|
Lee, Chien-Chaing |
3 |
125 |
128 |
|
Kane, Edward J |
2 |
210 |
96 |
|
Beramendi, Pablo |
2 |
106 |
73 |
|
Dickinson, Helen |
2 |
109 |
58 |
|
Jensen, Nathan M |
2 |
118 |
8 |
|
Mathqur, Inke |
2 |
154 |
8 |
|
Kahler, Miles |
2 |
279 |
1 |
Fig 4: VosViewer image of bibliometric coupling (documents)
Source: VosViewer
5 Limitations and Directions for Future Research
The outcome of the research is highly dependent on the papers selected and acquired from the Scopus database. It is possible that certain pertinent publications, particularly those in non-indexed or specialized journals, were not included in the analysis, thereby increasing the chances of missing out on some good & critical research papers of some serious researchers.
Although the search terms employed in the study are comprehensive and encompass several expressions relating to “political risk insurance”, it is important to acknowledge that researchers and academicians may have used alternate terminologies to indicate or represent the idea of PRI.
Limiting the search to only journal articles may lead to overlooking important insights found in other publication formats, such as conference proceedings, books, or reports.
The study exclusively examined the articles published in English; hence, it is possible to have missed out on few good articles in other languages.
It is recommended that future researchers do the analysis utilizing metadata from additional relevant sources, such as Web of Science and the like, to perform a comparative analysis.
Future studies can help practitioners and policymakers in developing better comprehensive offerings in insurance policy documents basis the extensive learnings of multiple papers from multiple countries.
6 Originality
With the eruption of wars and continuity in the same, there has been growing lack of faith amongst countries. Besides, issues like climate change and rising thoughts on nationalism have resulted in suspicion. Thus, it becomes important that political risk insurance ought to be counted as a key research area for every country intending to have global presence through the private or the government route. This is a growing field and we do not have much literature revie on this topic. This article will try to assimilate as many articles on this subject.
This study offers a notable input to the current academic understanding of political risk insurance (and political risk) and builds upon previous literature reviews. The chronological analysis demonstrates a significant trail of research on Political Risk and Political Risk Insurance since the advent of 1970s. The studies were mostly confined to PhD thesis in the United States before it broke out to the world. The academic spread across countries gained momentum over the years and now we have descent literature available.
The research is still devoid of two things: structuring with respect to definition, limitations & coverage and models proposing structure for the businesses, researchers and the like.
There is absentia of any uniformity or any practice by international companies or countries with respect to approaching the issue of political risk insurance. But to be o the safe side, all Governments must ensure that PRI is made mandatory for any company going for an investment beyond a particular limit in a foreign country. The initial investments may be promoted by the country’s government of the day. However, over a period of time, private companies must eb encouraged to take up this risk.
Cristina Bota-Avram (2022): Bibliometric analysis of sustainable business performance: where are we going? A science map of the field, Economic Research-EkonomskaIstraživanja
2 Swain, Sukhamaya and Jain, Charitra, Jyoti (2024), Political Risk Insurance; State Of Affairs And Its Importance In This Increasingly Complex World, Journal of Emerging Trends and Novel Research, 2 (5), 186-295
3 Kaur, J., Singh, S., Madaan, V. (2024). Work-related stress among bank employees: A bibliometric analysis of research trends and patterns. The Scientific Temper, 15(1):1873-1887
4 Polat, H., Topuz, A.C., Yildiz, M., Taslibeyaz, E., &Kursun, E. (2024). A bibliometric analysis of research on ChatGPT in education. International Journal of Technology in Education (IJTE), 7(1), 59-85
5 Guz, A.N., Rushchitsky, J.J. Scopus: A system for the evaluation of scientific journals. Int Appl Mech 45, 351–362 (2009)
6 Burnham, J.F. Scopus database: a review. Biomed Digit Libr 3, 1 (2006)
7 Alicia Mas-Tur, Norat Roig-Tierno, et al (2021), Co-citation, bibliographic coupling and leading authors, institutions and countries in the 50 years of Technological Forecasting and Social Change,Technological Forecasting and Social Change,165
8 Broadus, Robert (1987), Early approaches to bibliometrics, Journal of the Association for Information Science and Technology, 38(2)
9 Naveen Donthu, Satish Kumar, et al (2021), How to conduct a bibliometric analysis: An overview and guidelines,Journal of Business Research,133
10 Eck, Nees Jan van and Waltman, Ludo (2023), VOSviewer Manual (Manual for VOSviewer version 1 .6.20)
11Boddewyn, Jean J. and Thomas Lee Brewer (1994), “International-Business Political Behavior: New Theoretical Directions.” Academy of Management Review 19: 119-143
12 Fitzpatrick, Mark (1983), The Definition and Assessment of Political Risk in International Business: A Review of the Literature”, Academy of Management Review, 8(2)
13 Sottilotta, Cecilia (2012), Political Risk: Concepts, Definitions, Challenges, LUISS School of Government working paper series
14 Prakash, Jagdish and Joseph, Sebastian T et al (2010), Political Risk faced by industry-its repercussions and ways of minimizing it, Amity Management Review, 2(1), 10-17
15 Simon, Jeffery (1984), A theoretical perspective on Political Risk, Journal of International Business Studies, 15(3), 123-143
16 Bremmer, Ian (2005), Managing Risk in an Unstable world, Harvard Business Review, June 2005
17 Fagersten, Bjorn (2015), Political risk and the commercial sector – Aligning theory and practice, Risk Management, 17(1), 23-39
18 Chaddick, Brad and Howell, Llewellyn, D (1994), Models of political risk for foreign investment and trade: An assessment of three approaches, The Columbia Journal of World Business, 29(3), 70-91
19 Schmidt, David A (1986), Analyzing Political Risk, Business Horizons, 29(4), 45-50
20 Kennedy, Charles R (1988), Political risk management: A portfolio planning model, Business Horizons, 31(6), 26-33
21 Jarvis, Darryl S L (2008), Conceptualizing, Analyzing and Measuring Political Risk: The Evolution of Theory and Method, Research Paper Series: LKYSPP08-004 of Lee Kuan Yew School of Public Policy - National University of Singapore
22 Fraser, Campbell and Zarkada-Fraser, Anna (2002), Risk perception by UK firms towards the Russian market, International Journal of Project Management, 20(2), 99-105
23 Conklin, David (2011), The global environment of business: new paradigms for international management, Sage Publication
24 Kobrin, Stephen J (1979), Political Risk: A Review and Reconsideration, Journal of International Business Studies, 10(1), 67-80
25 Green, Robert T (1972) Political Instability as a Determinant of U.S. Foreign Investments, Studies in Marketing, No. 17, Bureau of Business Research, Graduate School of Business, University of Texas at Austin
26 Althaus, C. (2008), Calculating Political Risk (1st ed.). Routledge
27 Schuett, Richard J (2016), The Field of Political Risk Assessment: Examining the Definitions, Evolutions and Mitigation Strategies of a Developing Political Field, The School of Graduate and Postdoctoral Studies The University of Western Ontario London, Ontario, Canada
28 Robock, Stefan H (1971), Political risk: identification and assessment, The Columbia journal of world business: publ. quarterly by the Columbia University Graduate School of Business, 6, 6-20
29 Truitt, Fredrick J (1970), Multinational Business Management, 34(4)
30 Restrepo, Diana and Correia, Ricardo et al (2012), Political Risk and Corporate Investment Decisions, Universidad Carlos III de Madrid
31 Busse, Matthias and Hefeker, Carsten (2007), Political risk, institutions and foreign direct investment, European Journal of Political Economy, 23(2), 397-415
32 Aydin, UlviyyeSanili and Uste, Ahmet Nazmi (2022), Review of new political risks for the multinational energy corporations in the Caspian basin: a study for Azerbaijan, Transnational Corporations Review,14(3), 323-332
33 Chevalier, Alain and Hirsch, Georges (2017), “The Assessment of the Political Risk in the Investment Decision”, Journal of the Operational Research Society, 32(7), 599-610
34 Zohn, Molly (2007), Filling the Void: International Legal Structures and Political Risk in Investment, Fordham International Law Journal, 31(1)
35 Tallman, Stephen B (1988), Home country political risk and FDI in the United States, International Business and Comparative Management at U.C.L.A.
39 Bevan, Alan A and Estrin, Saul (2004), The determinants of foreign direct investment into European transition economies, Journal of Comparative Economics, 32(4), 775-787
40 Caputo, A., Pizzi, S., Pellegrini, M., &Dabic, M (2021), Digitalization and business models: Where are we going? A science map of the field. Journal of Business Research, 123, 489–501
41 Hamdani, Kausar and Liebers, Elise et al (2005), An Overview of Political Risk Insurance, Federal Reserve Bank of New York or the Federal Reserve System
42 Poulsen, Lauge N. Skovgaard (2010), The Importance of BITs for Foreign Direct Investment and Political Risk Insurance: Revisiting the Evidence, Yearbook on International Investment Law and Policy 2009/2010, 539-574
43 Gordon, Kathryn (2008), Investment Guarantees and Political Risk Insurance: Institutions, Incentives and Developments, OECD Investment Policies Perspectives 2008, 91-122
44 Arel-Bundock, Vincent and Peinhardt, Clint et al (2019), Political Risk Insurance: A New Firm-Level Dataset
45 Soopramanien, Ravi D (2017), Mind the GAP: Tailoring the Form and Substance of Political Risk Insurance in Order to Bridge the Enforcement Gap in Investment Gap in Investment Arbitration, International Lawyer, 50(3), 585-611
46 Perry, Maura B (1996), A Model for Efficient Foreign Aid: The Case for the Political Risk Insurance Activities of the Overseas Private Investment Corporation, Virginia Journal of International Law,36(511), 511-588
47 Moloo, Rahim and Khachaturian, Alex (2010), Foreign Investment in a Post-Conflict Environment, Journal of World Investment and Trade, 10(3)
48 Ikawa, Motomichi (2004), Introduction, International Political Risk Management The Brave New World, The World Bank, 1-6
49 X. Jia, T. Dai, X. Guo (2014), Comprehensive exploration of urban health by bibliometric analysis: 35 years and 11,299 articles, Scientometrics, 99 (3)
Download
Download
Download
Download
Download XML
