{"title":"Intrastate Armed Conflict Termination and Foreign Direct Investment","authors":"Daehee Bak, Hoon Lee","doi":"10.1093/FPA/ORAA027","DOIUrl":null,"url":null,"abstract":"Does intrastate conflict termination increase foreign direct investment (FDI)? Why do some countries receive rapid FDI inflows after an internal armed conflict ends, while others do not? As a key explanation, we focus on the different types of conflict termination that send different signals to foreign investors. We argue that post-conflict countries receive more FDI when an intrastate conflict ends in a decisive manner because decisive termination lowers the risk of conflict resumption that creates precarious investment climates. Using the UCDP armed conflict termination data from 1970 to 2009, we empirically find that countries emerging from an intrastate conflict that ends in one side's victory, in particular government victory, and that ends in a peace agreement with major power involvement attract more FDI over the course of post-conflict years.","PeriodicalId":46954,"journal":{"name":"Foreign Policy Analysis","volume":" ","pages":""},"PeriodicalIF":1.7000,"publicationDate":"2021-02-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1093/FPA/ORAA027","citationCount":"5","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Foreign Policy Analysis","FirstCategoryId":"90","ListUrlMain":"https://doi.org/10.1093/FPA/ORAA027","RegionNum":2,"RegionCategory":"社会学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q2","JCRName":"INTERNATIONAL RELATIONS","Score":null,"Total":0}
引用次数: 5
Abstract
Does intrastate conflict termination increase foreign direct investment (FDI)? Why do some countries receive rapid FDI inflows after an internal armed conflict ends, while others do not? As a key explanation, we focus on the different types of conflict termination that send different signals to foreign investors. We argue that post-conflict countries receive more FDI when an intrastate conflict ends in a decisive manner because decisive termination lowers the risk of conflict resumption that creates precarious investment climates. Using the UCDP armed conflict termination data from 1970 to 2009, we empirically find that countries emerging from an intrastate conflict that ends in one side's victory, in particular government victory, and that ends in a peace agreement with major power involvement attract more FDI over the course of post-conflict years.
期刊介绍:
Reflecting the diverse, comparative and multidisciplinary nature of the field, Foreign Policy Analysis provides an open forum for research publication that enhances the communication of concepts and ideas across theoretical, methodological, geographical and disciplinary boundaries. By emphasizing accessibility of content for scholars of all perspectives and approaches in the editorial and review process, Foreign Policy Analysis serves as a source for efforts at theoretical and methodological integration and deepening the conceptual debates throughout this rich and complex academic research tradition. Foreign policy analysis, as a field of study, is characterized by its actor-specific focus. The underlying, often implicit argument is that the source of international politics and change in international politics is human beings, acting individually or in groups. In the simplest terms, foreign policy analysis is the study of the process, effects, causes or outputs of foreign policy decision-making in either a comparative or case-specific manner.