Foreign direct investment and militarized international conflict
Bibliographic Data
| ID | 3916345 |
|---|---|
| Authors | Margit Bussmann (0009-0000-9340-7800, Universität Greifswald, corresponding author) |
| Year | 2010 |
| Volume | 47 |
| Issue | 2 |
| Pages | 143-153 |
| Publication date | 2010-03-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Journal of Peace Research (JOURNAL) |
| Journal identifiers | ISSN: 0022-3433 • E-ISSN: 1460-3578 |
| Publisher | SAGE Publications Inc (PUBLISHER) |
| DOI | 10.1177/0022343309354143 |
| OpenAlex | W2128405581 |
| Language | EN |
| Citations received | 42 |
| References cited | 44 |
Liberals claim that countries avoid conflict in order not to disrupt economically beneficial exchange. The statement that economic integration reduces the likelihood of conflict is largely based on the effects of trade. A similar rationale can be applied to economic interdependence in the form of international capital exchange. A state is expected to avoid political risk, especially severe forms such as militarized disputes, in order not to deter investors. This study tests, on the dyadic and monadic levels of analyses, whether the liberal peace proposition holds when economic integration is operationalized as foreign direct investment (FDI) stocks, inflows, and outflows. The results for the years 1980-2000 indicate that inflows and stock of foreign investment reduce the risk of an outbreak of a fatal dispute, regardless of whether they are tested in a single equation or a simultaneous equation model. Thus, reverse causality does not bias the pacifying effect of foreign investment inflows and stock. The results also support the underlying notion of the commercial peace that militarized conflicts inhibit foreign investment. The onset of a fatal conflict reduces FDI inflows, and, if tested in a two-stage instrumental variable approach, FDI stock, the most complete measure of economic integration through foreign investment. Accounting for endogeneity seems particularly important when analyzing the link between the onset of fatal disputes and the outflow of FDI
Econometrics · Economics · Endogeneity · Foreign direct investment · International economics · Macroeconomics · Monetary economics · International Development and Aid · Natural Resources and Economic Development · Political Conflict and Governance
Visible Fists
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The Hard Power of Natural Resources
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Does climate aid reduce perceived climate risks to foreign direct investors
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The pacifying effect of energy dependence on interstate conflict
Does Armed Conflict Reduce Foreign Direct Investment in the Petroleum Sector
Shaping Institutions
Military Interventions in Civil Wars
Light at the End of the Panel
Rewarding a friend
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Peace and conflict at different stages of the FDI lifecycle
Whose greed, whose grievance, and whose opportunity? Effects of foreign direct investments (FDI) on internal conflict
Political Investment Cycles in Democracies and Autocracies
Does economic globalization promote civil peace in developing countries
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Exploiting bullets
The impact of terrorism on international mergers and acquisitions
Armed Conflict and the Location of Extractive Foreign Direct Investment
Do Humanitarian Military Interventions Foster Economic Growth
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The effects of inter-state conflicts on foreign investment flows to the developing world
Testing Two Explanations of the Liberal Peace
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The impact of precarious security conditions on renewable electrification
Investing in stability
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Domestic Sources of Global Change
Clarify
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The Effects of Democracy on Economic Growth and Inequality
Explaining Interstate Conflict and War
Militarized Interstate Disputes, 1816–1992
The Power of Place and the Future of Spatial Analysis in the Study of Conflict
Economic and political determinants of foreign direct investment
On the determinants of direct foreign investment
Institutional Similarity and Interstate Conflict
The Liberal Peace Revisited
Foreign direct investment and host country conditions
Investors, turbulence, and transition
Taking Time Seriously
The Affinity of Foreign Investors for Authoritarian Regimes
Peace and Democracy
Expanded Trade and GDP Data
Market Prosperity, Democratic Consolidation, and Democratic Peace
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When Do Conflicting Political Relations Affect International Trade
Information and Economic Interdependence
Causes of Peace
Bilateral Trade in the Shadow of Armed Conflict
Political Freedom, Political Instability, and Policy Uncertainty
War, Peace, and the Invisible Hand
Proper Nouns and Methodological Propriety
Throwing Out the Baby with the Bath Water
Rationalist explanations for war
Democratic Governance and Multinational Corporations
Investing in the Peace
The Capitalist Peace
How the Wealth of Nations Conditions the Liberal Peace
The Classical Liberals Were Half Right (or Half Wrong)
A Liberal Peace in Asia
Tracking Democracy's Third Wave with the Polity III Data
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The Impact of War on Trade
| Unique citing works | 42 |
|---|---|
| Citations per year | 3 |
| Citation span | 2012 - 2026 (15) |
| Citation velocity | current |
| Highly cited | No |
| Citation types | Neutral: 40 |