The impact of political risk on private investment in Peru for the period 1990-2018

Private investment depends on external conditions, such as the price of minerals, and internal, such as political risk. However, internal conditions are not a decisive variable of private investment as long as they occur under a democratic regime; otherwise, political risk will become a significant variable. The purpose of this paper is to determine whether this risk has been a conclusive variable of Peruvian private investment in the study period. It will also analyze whether the political risk under non-democratic (1990-2000) and democratic (2000-2018) regimes has had a substantial impact on Peruvian private investment. Finally, it will also determine the impact of risk outliers.