Risky Business
Foreign Direct Investment and the Economic Consequences of Electoral Violence
Bibliographic Data
| ID | 13020439 |
|---|---|
| Authors | Austin C Doctor (0000-0003-1397-0092, Eastern Kentucky University, corresponding author), Stephen Bagwell (0000-0002-1431-9114, University of Missouri–St. Louis) |
| Year | 2019 |
| Volume | 5 |
| Issue | 2 |
| Pages | 339-360 |
| Publication date | 2019-12-17 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Journal of Global Security Studies (JOURNAL) |
| Journal identifiers | ISSN: 2057-3189 • E-ISSN: 2057-3189 |
| Publisher | Oxford University Press (OUP) (PUBLISHER) |
| DOI | 10.1093/jogss/ogz070 |
| OpenAlex | W3009888417 |
| Language | EN |
| Citations received | 3 |
| References cited | 62 |
While the social and political consequences of electoral violence are widely discussed in the literature, less is known about the economic repercussions of electoral violence. Our study investigates this dynamic, asking how episodes of electoral violence affect existing levels of foreign direct investment. We argue that, when managing their investments in foreign markets, multinational firms weigh the expected gains of the investment with the probability that the host country experiences significant lapses in political stability. Electoral violence signals a greater risk of this undesirable outcome and, thus, increases the probability that firms divest in favor of more favorable investment environments. Using firm-level data, we investigate the investment behavior of seventy-seven multinational firms in twenty-five Sub-Saharan African countries from 1995 to 2008 with a series of logistic regression models. Directly modeling the choices that firms make with respect to yearly changes in investment, we demonstrate that firms are more likely to divest following events of electoral violence in a host country. This study carries important implications for our understanding of how electoral violence may undermine the economic stability of emerging economies
Affect (linguistics · Business · Demographic economics · Divestment · Economics · Foreign direct investment · Investment (military · Macroeconomics · Multinational corporation · Political science · Politics · Corporate Finance and Governance · Economic Growth and Development · International Business and FDI · Finance
Nation-States and the Multinational Corporation
The institutional environment for multinational investment
Alternative Transformations to Handle Extreme Values of the Dependent Variable
Political risk, institutions and foreign direct investment
Veto Players
Institutions, Institutional Change and Economic Performance
Electoral Violence in Sub-Saharan Africa
Competitive Authoritarianism
Collateral Damage
Peace and conflict at different stages of the FDI lifecycle
Civil war termination and foreign direct investment, 1989–2012
Do bilateral investment treaties increase foreign direct investment to developing countries
Social Conflict in Africa
Political Investment Cycles in Democracies and Autocracies
Investors, turbulence, and transition
Bringing the Company Back In
Foreign Investment as a Dependent Variable
The Impact of Transnational Terrorism on U.S. Foreign Direct Investment
Political Risk, Democratic Institutions, and Foreign Direct Investment
What Attracts Foreign Investors? An Examination of Human Rights and Foreign Direct Investment
Democracy, Autocracy, and Tax Incentives to Foreign Direct Investors
Elections in Hybrid Regimes
Transparency, Risk, and FDI
A Violent Future? Political Risk Insurance Markets and Violence Forecasts
Avoiding the Spotlight
Political Freedom, Political Instability, and Policy Uncertainty
What We Talk About When We Talk About Foreign Direct Investment
Democratic Governance and Multinational Corporations
Reversal of Fortunes
Elections and Ethnic Civil War
The Politics of Foreign Direct Investment into Developing Countries
Surviving Elections
Electoral Institutions and Electoral Violence in Sub-Saharan Africa
Violence and Democracy
The failure of democratisation by elections in Cambodia
Democracy, foreign direct investment and natural resources
Timing and targeting of state repression in authoritarian elections
Vote buying and violence in Nigerian election campaigns
All quiet on election day? International election observation and incentives for pre-election violence in African elections
Electoral Violence in Conflict-Ridden Societies
Organized violence, 1989-2018 and peace agreements
The Contradictions of Pre-election Violence
| Unique citing works | 3 |
|---|---|
| Citations per year | 0,6 |
| Citation span | 2021 - 2026 (6) |
| Citation velocity | current |
| Highly cited | No |
| Citation types | Neutral: 3 |