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Abstract
The study examines the impact of geopolitical risk on total national investment in 25 OECD countries over the period 2000-2023. By employing the Generalized Least Squares (GLS) estimation on a panel dataset, the research effectively addresses heteroskedasticity and autocorrelation, ensuring the unbiasedness and high statistical reliability of the estimates. The empirical results indicate that geopolitical risk has negative effect on national investment. Control variables such as foreign direct investment (FDI), labor force, trade openness, inflation, and GDP growth all promote investment, while government expenditure reduces investment. These findings provide important empirical evidence on the role of geopolitical instability in shaping national investment, serving as a basis for policy recommendations.
Keywords: Geopolitical risk; National investment; OECD; Foreign direct investment (FDI).