For our third model we added the Political Risk Index as an independent variable. The PRI is the
overall measure of risk for a given country, calculated by using all 17 risk components from the Political
Risk Services Methodology including turmoil, financial transfer, direct investment, and export markets.
The Index provides a basic, convenient way to compare countries directly, it ranges from a minimum of
43 to a maximum of 93, the country with a higher index have a stronger political stability, on the contrary
countries with a lower PRI are more unstable (african countries). The box-plot below how the data are
distributed. All the data referring to PRI are taken from Political Risk Services Database and refer to
2014.