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Economic Approach to Conflict Issue: Investment in Post- Conflict Situation for International Business

Author

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  • Umit Hacioglu
  • Hasan Dincer
  • Ismail Erkan Celik

Abstract

The latest Global Economic Crisis and the latest Sovereign Crisis in the euro area have substantially deepened. Financial and economic conditions became a challenging matter for many investors and business organizations. The latest economic outlook is also prominent problem of researchers questioning the methods of sustaining long term interethnic peace in post- conflict countries (PCCs) and economies whilst the economic slowdown has effects on prosperity and development. In this study, it is aimed to develop an interdisciplinary approach to conflict issue within a theoretical framework in order to contribute to success of strategic decision making process at corporate level. Strategy makers at this level must evaluate the nature of conflict and develop conceptual skills before attempting to invest in conflict-prone economies. In this study, economic dimensions of conflict and its effect on investment climate have been evaluated to guide international business organizations. This study demonstrates that (i) there is strong tie between economic conditions and conflict risk, (ii) an increase in employment and income level in post conflicted economies is likely to decrease the probability of future conflict risk among interethnic groups (iii) inequality of income and resource distribution priorities among members of different ethnic groups escalate the risk of conflict, subsequently (iv) the success in the process of economic rehabilitation and recovery is a key contributory factor in sustaining peace and prosperity.

Suggested Citation

  • Umit Hacioglu & Hasan Dincer & Ismail Erkan Celik, 2012. "Economic Approach to Conflict Issue: Investment in Post- Conflict Situation for International Business," International Journal of Business Administration, International Journal of Business Administration, Sciedu Press, vol. 3(5), pages 1-8, September.
    • Handle: RePEc:jfr:ijba11:v:3:y:2012:i:5:p:1-8
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    References listed on IDEAS

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    1. Astri Suhrke & Espen Villanger & Susan L. Woodward, 2005. "Economic Aid to Post-conflict Countries: A Methodological Critique of Collier and Hoeffler," CMI Working Papers WP 2005:4, CMI (Chr. Michelsen Institute), Bergen, Norway.
    2. Patricia Justino, 2004. "Redistribution, Inequality and Political Conflict," HiCN Working Papers 05, Households in Conflict Network.
    3. Nicholas Sambanis, 2001. "Do Ethnic and Nonethnic Civil Wars Have the Same Causes?," Journal of Conflict Resolution, Peace Science Society (International), vol. 45(3), pages 259-282, June.
    4. repec:pru:wpaper:18 is not listed on IDEAS
    5. Paul Collier & Anke Hoeffler & Dominic Rohner, 2009. "Beyond greed and grievance: feasibility and civil war," Oxford Economic Papers, Oxford University Press, vol. 61(1), pages 1-27, January.
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