Foreign direct investment (FDI) is one of the most favoured commercial transactions since capital began to circulate freely around the world. The globalisation of investment enables the transfer of technology and capital between countries, as well as many other benefits. Ultimately, it leads to the prosperity and development of the host country and its participation in international markets. On the other hand, many factors have a negative impact on these investments and cause investment flows to be delayed or stopped.

The aim of this study is to identify the impact of risk, uncertainty and globalisation on FDI inflows in upper-middle income countries. For this purpose, an econometric model is estimated using the Johansen cointegration analysis method, where the average of net FDI inflows of upper middle income countries is the dependent variable and the Global Economic Policy Uncertainty Index, the Historical Geopolitical Risk Index, the Terrorist Acts Index and the Economic Globalisation Index are the independent variables, with a data set covering the years 1990-2020. According to the results of cointegration analysis, while there is a negative cointegration relationship between Global Economic Policy Uncertainty Index and geopolitical risks and FDI in upper middle income countries in the long run, there is a positive cointegration relationship with globalisation.