Hostname: page-component-76fb5796d-skm99 Total loading time: 0 Render date: 2024-04-25T15:59:01.665Z Has data issue: false hasContentIssue false

Youth Bulges, Busts, and Doing Business in Violence-Prone Nations

Published online by Cambridge University Press:  20 January 2017

Alfred A. Marcus
Affiliation:
University of Minnesota
Mazhar Islam
Affiliation:
University of Minnesota
John Moloney
Affiliation:
University of Minnesota

Abstract

To ascertain whether youth bulges are related to violent conflict and whether violent conflict falls off when youth bulges are followed by busts, we analyzed data from 1998–2005 covering 127 nations. Controlling for variables representing such factors as socio-development, macroeconomics, technology advancement, government capacity, and geo-politics, we find that youth bulges are related to violent conflict, but when youth bulges are followed by busts violent conflict grows rather than diminishes contrary to the prediction we make. From this analysis, we draw implications for further research and analysis with regard to doing business in violence-prone nations.

Type
Article
Copyright
Copyright © V.K. Aggarwal 2008 and published under exclusive license to Cambridge University Press 

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Abadie, A. & Gardeazabal, J. 2003. “The Economic Cost of Conflict: A Case Study of the Basque Country.” American Economic Review 93 (1): 113–32.Google Scholar
Abadie, A. 2006. “Poverty, Political Freedom, and the Roots of Terrorism.” American Economic Review 96 (2): 5056.Google Scholar
Berman, J. 2000. “Boardrooms and Bombs: Strategies of Multinational Corporations in Conflict Areas.” Harvard International Review 22 (3): 2832.Google Scholar
Berman, P. 2003. Terror and Liberalism. New York: Norton & Company.Google Scholar
Berrebi, C. & Klor, E. 2005. The Impact of Terrorism Across Industries: An Empirical Study. Discussion Paper No. 5360. London, U.K.: Centre for Economic Policy Research.Google Scholar
Berry, Heather. 2006. “Shareholder Valuation of Foreign Investment and Expansion.” Strategic Management Journal 27 (12): 11231140.Google Scholar
Blomberg, S., Hess, G. & Orphanides, A. 2004. The Macroeconomic Consequences of Terrorism. Working Paper 2004-2. Claremont, Calif.: McKenna College.Google Scholar
Campbell, A. 2002. Risk Analysis and Conflict Impact Assessment Tools for Multinational Corporations. Working Paper. Ottawa, Ontario, Canada: Country Indicators for Foreign Policy, Carleton University.Google Scholar
Choucri, N. 1974. Population Dynamics and International Violence. Lexington, MA: Lexington Books.Google Scholar
Choucri, N. 1984. Multidisciplinary Perspectives on Population and Conflict. Syracuse, New York: Syracuse University Press.Google Scholar
China, CSR 2008. Nokia China Focuses On Rural Children's Education (August 2008) http://www.chinacsr.com/en/2008/08/08/2760-nokia-china-focuses-on-rural-childrens-education/ Google Scholar
Clark, E. & Tunaru, R. 2003. “Quantification of Political Risk with Multiple Dependent Sources.” Journal of Economics and Finance 27 (2): 125135.Google Scholar
Clark, E. 1997. “Valuing Political Risk.” Journal of International Money and Finance 16 (3): 477490.Google Scholar
Cosset, J.C. & Suret, J.M. 1995. “Political Risk and the Benefits of International Portfolio Diversification.” Journal of International Business Studies 26 (2): 301318.Google Scholar
CSIS (Center for Strategic and International Studies), 2004. The Transatlantic Dialogue on Terrorism. Working Paper. Center for Strategic and International Studies.Google Scholar
Day, G., & Schoemaker, P. 2000. “Avoiding the Pitfalls of Emerging Technologies.” California Management Review 42 (2): 833.Google Scholar
Dunning, J.H. 1988. Multinationals, Technology, Competitiveness. Boston: Unwin Hyman.Google Scholar
Dunning, J.H. 1993. Multinational Enterprises and Global Economy. Boston: Addison-Wesley.Google Scholar
Economist, 2000. Risky returns. May 20: 8588.Google Scholar
Enders, W. & Sandler, T. 2006. “Distribution of Transnational Terrorism Among Countries by Income Class and Geography after 9/11.” International Studies Quarterly 50 (2): 367393.Google Scholar
Fearon, J. D. & Laitin, D. D. 2003. “Ethnicity, Insurgency and Civil War.” American Political Science Review 97 (1): 7590.Google Scholar
Feuer, L. 1969. The Conflict of Generations. New York: Basic Books.Google Scholar
Fort, T. L. & Schipani, C. 2004. The Role of Business in Fostering Peaceful Societies. Cambridge, UK: Cambridge University Press.Google Scholar
Frey, B., Luechinger, S., & Stutzer, A. 2007. “Calculating Tragedy: Assessing the Costs of Terrorism.” Journal of Economic Surveys 21 (1): 124.Google Scholar
Ghemawat, P. 2003. “Semi-globalization and International Business Strategy.” Journal of International Business Studies 34: 138152.Google Scholar
Gleditsch, N. P., Wallensteen, P.,Ericksson, M., Sollenberg, M., Strand, H. 2002. “Armed Conflict 1946-2001: A New Dataset.” Journal of Peace Research 39 (5).Google Scholar
Globerman, S. & Shapiro, D. 2003. “Global Infrastructure and US Foreign Direct Investment.” Journal of International Business Studies 34 (1): 1939.CrossRefGoogle Scholar
Greenberg, J., Porteus, J., Simon, L., Pyszczynski, T., & Solomon, S., 1995. “Evidence of a Terror Management Function of Cultural Icons.” Personality and Social Psychology Bulletin 21 (11): 12211228.Google Scholar
Grosse, R. & Trevino, . 1996. “Foreign Direct Investment in the United States: An Analysis by Country of Origin.” Journal of International Business Studies 77 (1): 139155.Google Scholar
Haber, S., Razo, A. & Maurer, N. 2004. The Politics of Property Rights: Political Instability, Credible Commitments, and Economic Growth in Mexico, 1878-1929. Cambridge, UK: Cambridge University Press.Google Scholar
Hakimain, H. 2006. “From Demographic Transition to Fertility Boom and Bust: Iran in the 1980s and 1990s.” Development and Change 37 (3): 571597.Google Scholar
Hart, S. 2007. Capitalism at the Crossroads. Upper Saddle River, New Jersey: Wharton School Press.Google Scholar
Hart, D., Atkins, R., & Youniss, . 2005. “Knowledge, Youth Bulges, and Rebellion.” Psychological Science 16 (8): 661662.Google Scholar
Heinsohn, G. (2003). Soehne und weltmacht: Terror im Aufstieg unde Fall der Nationen, Zurich, Switzerland: Orell & Fuessli.Google Scholar
Henisz, W. 2000. “The Institutional Environment for Multinational Investment.” Journal of Law, Economics, and Organization 16 (2), 334364.Google Scholar
Henisz, W. Zelner, B. 2002. Risk Management: A Strategic Perspective. Knowledge@Wharton, Research Center: Reginald H. Jones Center for Management Policy, Strategy and Organization.Google Scholar
Henisz, W., Macher, B. 2004. “Firm- and Country-level Tradeoffs and Contingencies in the Evaluation of Foreign Investment: The Semiconductor Industry, 1994-2002.” Organization Science 15 (4): 537554.Google Scholar
Hess, D., Rogovsky, N., Dunfee, T.W. 2002. “The Next Wave of Corporate Community Involvement: Corporate Social Initiatives.” California Management Review 44 (2): 110125.Google Scholar
Hudson, R. 1999. The Sociology and Psychology of Terrorism: Who Becomes a Terrorist and Why? Federal Research Division, Library of Congress, Washington, D.C. Google Scholar
Huntington, S. 1996. The Clash of Civilizations and the Remaking of World Order. New York: Touchstone.Google Scholar
Iankova, E. & Katz, J. 2003. “Strategies for Political Risk Mediation by International Firms in Transition Economies: The Case of Bulgaria.” Journal of World Business 38 (2003): 182203.Google Scholar
Jackson, R. & Strauss, R. 2007. The Geopolitics of World Population Change, CSIS Commentary, Washington, D.C., July 10.Google Scholar
Jensen, N. & Young, D. 2006. Investment Risk: What Makes Developing World Countries Prone to Violence? Working Paper. St. Louis, Missouri: Washington University.Google Scholar
Kahl, C. 2002. “Demographic Change, Natural Resources and Violence: The Current Debate.” Journal of Internal Affairs 56 (1): 257282.Google Scholar
Kahl, C. 2006. States, Scarcity, and Civil Strife in the Developing World. Princeton: Princeton University Press:Google Scholar
Kapstein, E. B. 2001. “The Corporate Ethics Crusade.” Foreign Affairs. September/October.Google Scholar
Kapstein, E. B. 2002. Virtuous Circles? Human Capital Formation, Economic Development and the Multinational Enterprise. Working Papers 191. OECD Development Centre.Google Scholar
Kaufmann, Daniel, Kraay, Aart and Mastruzzi, Massimo, Governance Matters VII: Aggregate and Individual Governance Indicators, 1996-2007(June 24, 2008). Working Paper 4654. Washington, D.C: World Bank Policy Research.Google Scholar
Kelman, S. 2005. “Public Management Needs HelpAcademy of Management Journal 48 (6): 967969.Google Scholar
Kenan, G. 1951. American Diplomacy 1900-1950. Chicago, Illinois: University of Chicago Press.Google Scholar
King, G. & Zeng, L. 2001. “Improving Forecasts of State Failure.” World Politics 53 (4): 623658.Google Scholar
Kobrin, S. J. 1979. “Political Risk: A Review and Reconsideration.” Journal of International Business Studies 10 (1): 6780.Google Scholar
Kobrin, S. J. 1991. “An Empirical Analysis of the Determinants of Global Integration.” Strategic Management Journal 12 (Special Issue: Global Strategy): 1731.Google Scholar
Kostova, T. & Zaheer, S. 1999. “Organizational Legitimacy Under Conditions of Complexity: The Case of the Multinational Enterprise.” Academy of Management Review 24 (1): 6481.Google Scholar
Krueger, A. 2007. What Makes a Terrorist: Economics and the Roots of Terrorism. Princeton, New Persey: Princeton University Press.Google Scholar
Jackson, R. & Strauss, R. 2007. The Geopolitics of World Population Change. Commentary: Center for Strategic and International Studies, Washington D.C. http://www.csis.org/media/csis/pubs/070710_jackson_commentary.pdf Google Scholar
Laipson, Ellen. 2002. “The Middle East's Demographic Transition: What Does it Mean?Journal of International Affairs 56 (1): 175188.Google Scholar
Li, Q. 2006. “Political Violence and Foreign Direct Investment. Research in Global Strategic Management.” International Studies Quarterly 12: 231255.Google Scholar
Longman, P. 2004. The Empty Cradle: How Falling Birthrates Threaten World Prosperity and What to Do About It. Cambridge, MA: Basic Books.Google Scholar
Lutz, W., Sanderson, W. & Scherbov, S. 2005. The End of World Population Growth in the 21st Century. London, UK: Earthscan Publications Ltd.Google Scholar
Malthus, T. R. 1803. An Essay on the Principle of Population Mansfield, E.D. 1994. Power, Trade & War. Princeton, New Jersey: Princeton University Press.Google Scholar
Mariotti, S. & Piscitello, P. 1995. “Information Costs and Location of FDIs Within the Host Country: Empirical Evidence from Italy.” Journal of International Business Studies 26 (4): 815841.Google Scholar
Mayer, A., 2002. The Furies: Violence and Terror in the French and Russian Revolutions. Princeton, New Jersey: Princeton University Press.Google Scholar
McCarthy, K. F. 1999. World Population Shifts: Boom or Doom, Population Matters, Rand Corporation, Santa Monica, CA.Google Scholar
Mitchell, R.K. & Agle, B.R. 1997. “Toward a Theory of Stakeholder Identification and Salience: Defining the Principle of Who and What Really Counts.” Academy of Management Review 22 (4): 853886.Google Scholar
Mitroff, I., Puchant, T., & Shrivastava, P. 2006. “The Structure of Man-made Organizational Crises: Conceptual and Empirical Issues in the Development of a General Theory of Crisis Management.” In Key Readings in Crisis Management: Systems and Structures for Prevention and Recovery, edited by Smith, D. and Elliott, D. London, UK: Routledge.Google Scholar
Muraweic, L. & Adamson, D. 2000. Demography and Security. Population Matters. Rand Corporation, Santa Monica, CA.Google Scholar
NIC (National Intelligence Council) 2000. Global Trends 2015: A Dialogue About Future With Non Government Experts, National Intelligence Council.Google Scholar
Pettigrew, A. 2005. “The Character and Significance of Management Research on the Public Services.” Academy of Management Journal 48 (6): 973977.Google Scholar
Prahalad, C.K. 2006. The Fortune at the Bottom of the Pyramid: Eradicating Poverty Through Profits. Philadelphia, Pennsylvania: Wharton University Press.Google Scholar
Institute, Rand. 2001. Long-Term Global Demographic Trends: Reshaping the Geopolitical Landscape. Working Paper. The Rand Institute.Google Scholar
Ricart, J., Enright, M. Ghemawat, P. Hart, S. & Khanna, T. 2004. “New Frontiers in International Strategy.” Journal of International Business Studies 35 (3): 175200.Google Scholar
Robertson, C. & Watson, A. 2004Corruption and Change: The Impact of Foreign Direct Investment.” Strategic Management Journal 25 (4): 385396.Google Scholar
Rodriguez, P. Siegel, D.S., Hillman, A. & Eden, L. 2006. “Three Lenses on the Multinational Enterprise: Politics, Corruption, and Corporate Social Responsibility.” Journal of International Business Studies 37 (6): 733746.Google Scholar
Rummel, R. 1997. Death by Government. New Brunswick, New Jersey: Transaction.Google Scholar
Rynes, S. L. & Shapiro, D.L. 2005. “Public Policy and the Public Interest: What If We Mattered More?Academy of Management Journal 48 (6): 925927.Google Scholar
Sandbrook, R. & Romano, D. 2004. “Globalisation, Extremism, and Violence in Poor Countries.” Third World Quarterly 25 (6): 10071030.Google Scholar
Sheffi, Y. 2001. “Supply Chain Management Under the Threat of International Terrorism.” The International Journal of Logistics Management 12 (2): 111.Google Scholar
Sorel, G. 1950. Reflections on Violence. New York: Free Press.Google Scholar
Urdal, Henrik, 2006. “A Clash of Generations? Youth bulges and Political Violence.” International Studies Quarterly 50 (3): 607630.Google Scholar
Von Glinow, M. A., Shapiro, D. L. & Brett, J.M. 2004. “Can We Talk, and Should We? Managing Emotional Conflict in Multicultural Teams.” Academy of Management Review 29 (4): 578592.Google Scholar
Walzer, M. 1968. The Revolution of the Saints. New York: Atheneum.Google Scholar
Walzer, M. 2002. “Five Questions About Terrorism”. Dissent, Winter 2002.Google Scholar
Weiner, R.J. 2005. “Speculation in International Crises: Report from the Gulf.” Journal International Business Studies 36 (5): 576587.Google Scholar
Werner, S. Brouthers, L. & Brouthers, K. 1996. “International Risk and Perceived Environmental Uncertainty: The Dimensionality and Internal Consistency of Miller's Measure.” Journal of International Business Studies 27 (3): 571587.Google Scholar
Wilson, J. & Hernstein, R. 1998. Crime and Human Nature: The Definitive Study of the Causes of Crime. New York: Free Press.Google Scholar
Witt, M. A. & Lewin, A.Y. 2007. “Outward Foreign Direct Investment as Escape Response to Home Country Institutional Constraints.” Journal of International Business Studies 38 (4), 579594.Google Scholar
Zaheer, S. 1995. “Overcoming the Liability of Foreignness.” Academy of Management Journal 38 (2): 341–63.Google Scholar