Globalization and International Conflict: Can Foreign Direct Investment Increase Cooperation Among Nations?

Solomon W. Polachek, Carlos Seiglie, Jun Xiang

Research output: Chapter in Book/Report/Conference proceedingChapter

3 Scopus citations

Abstract

There is a long-standing literature that has examined how international trade itself might induce cooperation and peace among states potentially in conflict. In particular, despite some disagreements between leaders of different states, these leaders could be induced to maintain peace if war implies a disruption of trade, and such trade is essential to the performance of each state's economy. Mutual economic interdependence, then, could induce peaceful relations. This article takes this line of reasoning one step further, to consider both theoretically and empirically the positive influence of international capital flows on peace between nations.

Original languageEnglish (US)
Title of host publicationThe Oxford Handbook of the Economics of Peace and Conflict
PublisherOxford University Press
ISBN (Electronic)9780199940806
ISBN (Print)9780195392777
DOIs
StatePublished - Apr 20 2012

All Science Journal Classification (ASJC) codes

  • Economics, Econometrics and Finance(all)

Keywords

  • International capital flows
  • International trade
  • Peace maintenance
  • State economy
  • Trade disruption

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