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Abstract

This study assesses the relationships between foreign direct investment (FDI), growth, natural resources, and UN peacekeeping operations (PKOs) in fragile and conflict-affected countries (FCAs). An unbalanced panel-dataset on conflict and peacekeeping covering 127 countries from 1989-2018 was created to estimate how FDI and growth are associated with periods of peace, conflict, and post-conflict, including the significance of having a PKO in the last. In conclusion, the study finds that fragility is not a major deterrent of resource-seeking FDI, largely explained by its set of unique investment determinants. Furthermore, that peacekeeping and natural resources are important overlooked factors in understanding the large country heterogeneity regarding the economic impact of conflicts and post-conflict economic recovery, and that peacekeeping could be an important measure in closing conflict-attributable GDP losses.

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/content/papers/10.18356/30053307-4
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  • Published online: 11 Sep 2020
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