The economic benefits of justice

Post-conflict justice and foreign direct investment

Dados Bibliográficos

ID3915955
AutoresBenjamin J Appel (0000-0002-8564-1370, Michigan State University), Cyanne E Loyle (0000-0003-4871-7433, West Virginia University, autor correspondente)
Ano2012
Volume49
Fascículo5
Páginas685-699
Data de publicação2012-09-01
Peer ReviewedSim
Open AccessSim
TipoARTICLE
PeriódicoJournal of Peace Research (JOURNAL)
Identificadores do periódicoISSN: 0022-3433 • E-ISSN: 1460-3578
EditoraSAGE Publications Inc (PUBLISHER)
DOI10.1177/0022343312450044
OpenAlexW2325275831
IdiomaEN
Citações recebidas31
Referências citadas49

Post-conflict states represent an important research agenda for scholars studying foreign direct investment (FDI). While leaders of post-conflict states have strong incentives for trying to attract international investments, multinational corporations (MNCs) may view these states as high-risk since the reoccurrence of violence in the aftermath of civil conflict is common. Consequently, leaders of post-conflict states desperate to receive FDI to help ignite their stalled economies must convince MNCs that their state is a stable and secure place to invest in. Drawing on the recent literature that identifies the importance of domestic and international institutions for securing FDI, this article argues that post-conflict justice (PCJ) institutions can help post-conflict states attract investment. The domestic and reputation costs associated with implementing PCJ allow states to send a costly and credible signal to international investors about the state's willingness to pursue the successful reconstruction of the post-conflict zone. Under these conditions, uncertainty is lessened and foreign investors can feel more confident about making investments. Post-conflict states, therefore, that choose to implement PCJ are more likely to receive higher levels of FDI compared with post-conflict states that refrain from implementing these institutions. Statistical tests confirm the relationship between justice institutions and FDI from 1970-2001. Post-conflict states that implement restorative justice processes in the post-conflict period receive higher levels of FDI than those countries that do not implement a process

Business · Economic Justice · Economics · Foreign direct investment · Incentive · International conflict · Market economy · Multinational corporation · Political economy · Political science · Politics · Reputation · State (computer science) · International Business and FDI · International Development and Aid · Law · Natural Resources and Economic Development