IDEAS home Printed from https://ideas.repec.org/a/sae/jocore/v67y2023i9p1647-1674.html
   My bibliography  Save this article

The Double-Edged Sword of Foreign Direct Investment on Domestic Terrorism

Author

Listed:
  • Glen Biglaiser
  • Lance Y Hunter
  • Ronald J McGauvran

Abstract

This paper studies the effects of foreign direct investment (FDI) on domestic terrorism. Using a cross-national, time-series analysis of 114 countries from 1991–2017, and employing structural equation modeling to test a number of mediating factors, we find that the impact of FDI on domestic terrorism depends on the host state’s level of economic development. For host countries at higher-income levels, FDI boosts economic development and global integration promoting prosperity, increasing counterterrorism resources, and reducing the economic grievances that foster terrorism. Conversely, for lower-income host countries, increased FDI fuels higher domestic terrorism, as it intensifies clashes between traditional and modern elements within society, raises economic discrimination, heightens perceptions of economic insecurity, and subsequently leads to grievances directed against the state. Our results indicate a curvilinear relationship between FDI inflows and domestic terrorism, suggesting that FDI produces a double-edged sword between promoting economic development and increasing domestic terrorism in host states.

Suggested Citation

  • Glen Biglaiser & Lance Y Hunter & Ronald J McGauvran, 2023. "The Double-Edged Sword of Foreign Direct Investment on Domestic Terrorism," Journal of Conflict Resolution, Peace Science Society (International), vol. 67(9), pages 1647-1674, October.
    • Handle: RePEc:sae:jocore:v:67:y:2023:i:9:p:1647-1674
    DOI: 10.1177/00220027231153584
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/00220027231153584
    Download Restriction: no
    File URL: https://libkey.io/10.1177/00220027231153584?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:jocore:v:67:y:2023:i:9:p:1647-1674. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: http://pss.la.psu.edu/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.