{"type":"script","doc_desc":{"producers":[{"name":"Reproducibility WBG","abbr":"DECDI","affiliation":"World Bank - Development Impact Department","role":"Verification and preparation of metadata"}],"prod_date":"2026-08-04","version":"1"},"project_desc":{"authoring_entity":[{"name":"Hayley Pallan","affiliation":"World Bank","email":"hpallan@worldbank.org"},{"name":"Bram Gootjes","affiliation":"World Bank","email":"bgootjes@worldbank.org"}],"title_statement":{"title":"Reproducibility package for The Scars Of Global Growth Shocks: Evidence Of Uneven Recovery In FDI Announcements","idno":"RR_WLD_2026_715"},"data_statement":"Some data is restricted and has not been included in the reproducibility package. For more details, please refer to the README file. ","software":[{"name":"Stata","version":"19.5 MP"}],"scripts":[{"title":"Reproducibility package for The Scars Of Global Growth Shocks: Evidence Of Uneven Recovery In FDI Announcements","date":"2026-08","notes":"Computational reproducibility verified by Development Impact (DECDI) Analytics team, World Bank.","instructions":"See README in reproducibility package.","file_name":"RR_WLD_2026_715","zip_package":"RR_WLD_2026_715.zip","dependencies":"Stata dependencies are listed in the ado folder."}],"repository_uri":[{"name":"Reproducible Research Repository (World Bank)","uri":"https:\/\/reproducibility.worldbank.org"}],"production_date":"2026-08-04","abstract":"Despite heightened interest in the role of geopolitics and fragmentation for cross-border economic activity, our understanding of the potential scarring effects of adverse global conditions on foreign direct investment (FDI) is limited. Accounting for the real-time nature of investor decisions, local projection estimates show that adverse global growth shocks have scarring effects on FDI project announcements for about three years. Beyond the baseline finding, the paper offers three novel results: scarring effects are more subdued in \u201csafe\u201d countries; projects in \u201cstrategic\u201d sectors smooth headline announcement fluctuations because they are less sensitive to adverse global growth shocks; and geopolitical positioning plays an important role in the uneven recovery of FDI announcements. The results are robust to a variety of additional exercises, including sample adjustments, alternative shock measures and specifications, and various definitions of institutions, sectors, and geopolitical alignment.","geographic_units":[{"name":"World","code":"WLD"}],"keywords":[{"name":"Foreign Direct Investment"},{"name":"Global Shocks"},{"name":"Political Risk"},{"name":"Geopolitics"},{"name":"Real-Time Data"},{"name":"Scarring Effects"}],"topics":[{"id":"C18","uri":"https:\/\/www.aeaweb.org\/econlit\/jelCodes.php?view=jel","vocabulary":"Journal of Economic Literature (JEL)","name":"Methodological Issues: General","parent_id":"C1"},{"id":" D81","uri":"https:\/\/www.aeaweb.org\/econlit\/jelCodes.php?view=jel","vocabulary":"Journal of Economic Literature (JEL)","name":"Criteria for Decision-Making under Risk and Uncertainty","parent_id":"D8"},{"id":" F21","uri":"https:\/\/www.aeaweb.org\/econlit\/jelCodes.php?view=jel","vocabulary":"Journal of Economic Literature (JEL)","name":"International Investment \u2022 Long-Term Capital Movements","parent_id":"F2"},{"id":" F62","uri":"https:\/\/www.aeaweb.org\/econlit\/jelCodes.php?view=jel","vocabulary":"Journal of Economic Literature (JEL)","name":"Macroeconomic Impacts","parent_id":"F6"}],"output":[{"type":"Working Paper","description":"Policy Research Working Papers (PRWP)","title":"The Scars Of Global Growth Shocks: Evidence Of Uneven Recovery In FDI Announcements"}],"language":[{"name":"English","code":"EN"}],"disclaimer":"The materials in the reproducibility packages are distributed as they were prepared by the staff of the International Bank for Reconstruction and Development\/The World Bank. The findings, interpretations, and conclusions expressed in this event do not necessarily reflect the views of the World Bank, the Executive Directors of the World Bank, or the governments they represent. The World Bank does not guarantee the accuracy of the materials included in the reproducibility package.","license":[{"name":"MIT License","uri":"https:\/\/opensource.org\/license\/mit"},{"name":"World Bank IGO Rider","uri":"https:\/\/github.com\/worldbank\/metadata-editor\/blob\/main\/WB-IGO-RIDER.md"}],"contacts":[{"name":"Hayley Pallan","affiliation":"World Bank","email":"hpallan@worldbank.org"},{"name":"Reproducibility WBG","affiliation":"World Bank","email":"reproducibility@worldbank.org"}],"datasets":[{"name":"World Bank Prospects Group Country Classifications","note":"Data accessed in February 2024. File locations: data\/raw\/PG_Aes_Feb2024.dta; data\/raw\/wb_classification24_ifcode.dta; data\/raw\/country_namescode.dta.","access_type":"Data is publicly available and included in the reproducibility package.","license":"Creative Commons Attribution 4.0 International (CC BY 4.0)","license_uri":"https:\/\/creativecommons.org\/licenses\/by\/4.0\/","uri":"https:\/\/www.worldbank.org\/en\/research\/brief\/prospects-group-analysis","citation":"World Bank. 2024. \"Prospects Group Country Classifications\" [dataset]. https:\/\/www.worldbank.org\/en\/research\/brief\/prospects-group-analysis. Accessed February 2024."},{"name":"fDi Markets Database","note":"Data accessed in March 2026. Indicators accessed: countries, years, sectors, and indicators for projects related to environmental technologies. File locations: data\/raw\/fDi Markets data Jan 10 - Dec 25 including company ID (IC Unit internal use only).xlsx; wp_replication\/data\/raw\/fDi Markets data Jan2003 - Dec2022 (excluding intrastate).xlsx; data\/raw\/sectors_fdimarkets_2010.dta.","access_type":"Data access was granted directly to the study authors by the data owners. It was obtained with a custom data license that does not allow for redistribution and it is not included in the reproducibility package.","license":"FT Specialist Terms and Conditions","license_uri":"https:\/\/terms.ftspecialist.com\/","uri":"https:\/\/www.fdimarkets.com\/","citation":"FT Specialist. 2026. \"fDi Markets Database\" [dataset]. https:\/\/www.fdimarkets.com\/. Accessed March 2026."},{"name":"World Development Indicators","note":"Indicators accessed: Foreign direct investment, net inflows (% of GDP and BoP, current US$). 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File location: wp_replication\/data\/raw\/ICRG_ANNUAL_Feb_21_2022.dta.","access_type":"Data access was granted directly to the study authors by the data owners. It was obtained with a custom data license that does not allow for redistribution and it is not included in the reproducibility package.","license":"Custom License","uri":"https:\/\/www.prsgroup.com\/explore-our-products\/icrg\/","citation":"The PRS Group. 2022. \"International Country Risk Guide (ICRG)\" [dataset]. https:\/\/www.prsgroup.com\/explore-our-products\/icrg\/. Accessed February 2022."},{"name":"Political Constraint Index (POLCON) Dataset","note":"Indicators accessed: Political Constraint Index (POLCON), executive-legislative alignment and fragmentation measures, and detailed government party composition by country. File location: wp_replication\/data\/raw\/POLCON_2021_VDEM.xlsx.","access_type":"Data is publicly available and included in the reproducibility package.","uri":"https:\/\/mgmt.wharton.upenn.edu\/faculty\/heniszpolcon\/polcondataset\/","citation":"Henisz, W.J. 2021. \"Political Constraint Index (POLCON) Dataset\" [dataset]. Wharton School, University of Pennsylvania. https:\/\/mgmt.wharton.upenn.edu\/faculty\/heniszpolcon\/polcondataset\/. Accessed June 2026."},{"name":"Chinn-Ito Financial Openness Index","note":"Indicators accessed: measure of a country's degree of capital account openness, raw and normalized (0\u20131) versions, by country and year (1970\u20132021). 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Accessed June 2026."}],"technology_requirements":"Run time: ~ 7 minutes","technology_environment":"Paper exhibits were reproduced on a computer with the following specifications:\n\u2013 OS: Windows 11 Enterprise\n\u2013 Processor: INTEL(R) XEON(R) GOLD 6226R CPU @ 2.90GHz (2 processors)\n\u2013 Memory available: 16 GB","reproduction_instructions":"To reproduce the findings in this paper, a replicator must:\n1. **Secure Access to Data:** Access the datasets not included in the package. See the Datasets section for more details.\n2. **Run the Package:** Update the working directory in line 11 of the do-file \"master_file\".\n\nSince not all the data is included and the verification was done virtually, the package includes the results shared by the authors. These files can be used to review the results presented in the paper."},"datacite":{"creators":[{"givenName":"Hayley","familyName":"Pallan","nameType":"Personal","affiliation":[{"name":"World Bank","affiliationIdentifier":"https:\/\/ror.org\/00ae7jd04","affiliationIdentifierScheme":"ROR","schemeUri":"https:\/\/ror.org"}]},{"givenName":"Bram","familyName":"Gootjes","nameType":"Personal","affiliation":[{"name":"World Bank","affiliationIdentifier":"https:\/\/ror.org\/00ae7jd04","affiliationIdentifierScheme":"ROR","schemeUri":"https:\/\/ror.org"}]}],"titles":[{"lang":"en","title":"Reproducibility package for The Scars Of Global Growth Shocks: Evidence Of Uneven Recovery In FDI Announcements"},{"title":"RR_WLD_2026_715","titleType":"Other"}],"publisher":"World Bank","publicationYear":"2026","types":{"resourceType":"Reproducibility package","resourceTypeGeneral":"Other"},"url":"https:\/\/reproducibility.worldbank.org\/index.php\/catalog\/study\/RR_WLD_2026_715","language":"en"},"tags":[{"tag":"DOI"},{"tag":"Open Code"},{"tag":"Restricted Data"}],"schematype":"script"}