Polachek, Solomon; Seiglie, Carlos; Xiang, Jun - In: Defence and Peace Economics 18 (2007) 5, pp. 415-429
This paper extends the analysis of the conflict-trade relationship by introducing foreign direct investment (FDI). We present a formal model that shows why FDI can improve international relations. We then proceed to test the model empirically. Our empirical results show that foreign direct...