Driffield, Nigel L., Jones, Christopher and Crotty, Jo (2013) International business research and risky investments, an analysis of FDI in conflict zones. International Business Review, Volume 22 (Number 1). pp. 140-155. doi:10.1016/j.ibusrev.2012.03.001

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Abstract

The purpose of this paper is to examine the determinants of a firm's strategy to invest in a conflict location. To the best of our knowledge, this has not been done before. We examine this using a standard model of international business, overlaid with the fundamental approach to corporate social responsibility. We start with the population of multinationals who have chosen to invest in low income countries with weak institutions. We then split this sample in order to distinguish between firms that have invested in conflict regions compared to those that have not. Our analysis then proceeds to explain the decision of those firms to invest in conflict locations using a simple Probit model. We find that countries with weaker institutions and less concern about corporate social responsibility (CSR) are more likely to invest in conflict regions. Finally, firms with more concentrated ownership are more likely to invest in such locations.

Item Type:	Journal Article
Divisions:	Faculty of Social Sciences > Warwick Business School > Strategy & International Business Faculty of Social Sciences > Warwick Business School
Journal or Publication Title:	International Business Review
Publisher:	Pergamon Press
ISSN:	0969-5931
Official Date:	February 2013
Dates:	Date Event February 2013 Published
Volume:	Volume 22
Number:	Number 1
Number of Pages:	15
Page Range:	pp. 140-155
DOI:	10.1016/j.ibusrev.2012.03.001
Status:	Peer Reviewed
Publication Status:	Published
Access rights to Published version:	Restricted or Subscription Access

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