Political risk handout

How valid are common indicators of political risk used in IB research and practice?

Camilla Jensen, Associate Professor, Roskilde University, Denmark
25/06/19 - Interactive Session - AIB Conference, Copenhagen, 2019

Problems of existing indicators

Sub-components in the ICRG

Hypothesis testing I (existing indicators)

Hypothesis testing II (project level indicators)

Other types of big data that could be used

  • International trade
  • International production data
  • NASA - Earth Science Data
  • Calibration on company-specific data (ex-post) - we need to know the real human and economic cost of political risk to develop better models