The Effects of Foreign Investment upon Political Protest and Violence in Underdeveloped Societies

This research investigates the effects of foreign investment dependence upon domestic political conflict in Third World states. A cross-national research design is used to examine the effects of manufacturing and mining investments on three types of conflict: (1) political protest; (2) political turmoil; and (3) internal war. The results show that very poor and wealthier countries are affected differently. Among the poorest states, investment in both manufacturing and in mining is associated with lower levels of protest and turmoil. For wealthier states, only manufacturing investments affect conflict, as political protest is increased by a large foreign presence. Internal war is not affected by foreign investment dependence.