The economic benefits of justice
Abstract
Post-conflict states represent an important research agenda for scholars studying foreign direct investment (FDI). While leaders of post-conflict states have strong incentives for trying to attract international investments, multinational corporations (MNCs) may view these states as high-risk since the reoccurrence of violence in the aftermath of civil conflict is common. Consequently, leaders of post-conflict states desperate to receive FDI to help ignite their stalled economies must convince MNCs that their state is a stable and secure place to invest in. Drawing on the recent literature that identifies the importance of domestic and international institutions for securing FDI, this article argues that post-conflict justice (PCJ) institutions can help post-conflict states attract investment. The domestic and reputation costs associated with implementing PCJ allow states to send a costly and credible signal to international investors about the state’s willingness to pursue the successful reconstruction of the post-conflict zone. Under these conditions, uncertainty is lessened and foreign investors can feel more confident about making investments. Post-conflict states, therefore, that choose to implement PCJ are more likely to receive higher levels of FDI compared with post-conflict states that refrain from implementing these institutions. Statistical tests confirm the relationship between justice institutions and FDI from 1970–2001. Post-conflict states that implement restor…
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The costly and public nature of truth commissions sends a credible signal to potential rebels and their supporters that the government is committed to addressing grievances and promoting peace and societal reconciliation.
“Furthermore, the costly and public nature of truth commissions sends a credible signal to potential rebels and their supporters that the government is committed to addressing grievances and promoting peace and societal reconciliation (Appel and Loyle 2012;Taylor and Dulkalskis 2012).”
From Conflict Recurrence and Postconflict Justice: Addressing Motivations and Opportunities for Sustainable Peace (2017) · cites this paper as Appel and Loyle 2012
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Foreign Direct Investment and Armenia’s Economic Security: Geographic and Sectoral Assessment
Badalyan, R. A. (2026) · Регион и мир / Region and the World · doi:10.58587/18292437-2026.2-186
NAZARYAN, G., & Badalyan, R. A. (2026) · Финансовые исследования · doi:10.54220/finis.1991-0525.2026.91.2.017
- Authors
- Appel, B. J., & Loyle, C. E.
- Affiliations
- Michigan State University (US)
- West Virginia University (US)
- Corresponding author
- Loyle, Cyanne E
- Venue
- Journal of Peace Research
- Publisher
- Oxford University Press (OUP)
- Published
- 2012-09-01
- Volume
- 49
- Issue
- 5
- Pages
- 685-699
- ISSN
- 0022-3433 (ISSN-L)
- 1460-3578
- OpenAlex
- W2325275831
- Cited by
- 52
- References
- 65
- Citations by year
- 2026: 3 · 2025: 3 · 2024: 3 · 2023: 2 · 2022: 5 · 2021: 6 · 2020: 3 · 2019: 6 · 2018: 4 · 2017: 5 · 2016: 3 · 2015: 5 · 2014: 2 · 2013: 1 · 2012: 1
- FWCI
- 8.56
- Type
- journal article
- Language
- en
- Open access
- closed
- Licence
- Locations
- Journal of Peace Research (publishedVersion)
- RePEc: Research Papers in Economics (submittedVersion)
- Funders
- University of Pennsylvania
- Telekom Malaysia Berhad
- Topics
- Social Sciences › Business, Management and Accounting › Strategy and Management › International Business and FDI
- Social Sciences › Sociology and Political Science › Political Conflict and Governance
- Social Sciences › Sociology and Political Science › Peacebuilding and International Security
- Keywords
- post-conflict justice, foreign direct investment, restorative justice, post-conflict reconstruction, investment climate, institutional credibility, post-conflict states, civil conflict, investor uncertainty
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