We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
The Costs of Domestic Political Unrest<sup>1</sup>.
- Authors
Braithwaite, Alex; Kucik, Jeffrey; Maves, Jessica
- Abstract
Does domestic political unrest deter foreign direct investment (FDI)? And what are the longer term impacts of unrest upon the market? Most theories suggest that investors are deterred by unrest. However, empirical research returns only marginal support. We argue that these mixed results stem from the conflation of the distinct tactics and outcomes of political unrest. Violent forms of unrest increase uncertainty and risk. By comparison, nonviolent forms of unrest are shown to more frequently achieve their goals and increase the prospects for democratic change and market stability. In addition, investors avoid markets where campaigns have ended in failure, defined as the campaign not achieving their stated political aims. Failed campaigns often precipitate a cycle of unrest that create greater uncertainty over the long-term stability of a state. We find strong evidence in favor of our propositions, even after taking political motivation and non-random selection into account.
- Subjects
FOREIGN investments; RESISTANCE to government; POLITICAL violence; PASSIVE resistance; DEMOCRATIZATION; POLITICAL stability
- Publication
International Studies Quarterly, 2014, Vol 58, Issue 3, p489
- ISSN
0020-8833
- Publication type
Article
- DOI
10.1111/isqu.12061