together two recent streams of literature to highlight the role of political risk. We find that violence in the form of … terrorism, revolutions, and wars is harmful to international investment. Violence in a source country encourages investment away … from the parent to a safer host. Host country violence hurts investment, mainly in developing countries. Developing …

growing incidence of intrastate violence. We develop and test a novel argument linking foreign direct investment (FDI) to … intrastate armed violence in developing countries. We argue that the entry and presence of multinational corporations causes …