Title :
Can Trade and Foreign Direct Investment Signals Reduce International Conflicts?
Author :
Jie, Cai ; Shunhong, Yu
Author_Institution :
Sch. of Econ. & Manage., Huazhong Normal Univ., Wuhan, China
Abstract :
After the cold war, the effect of international trade and foreign direct investment (FDI) on international conflict becomes more and more significant. After evaluating the international conflict, the paper uses system of simultaneous equations to do empirical research and discovers that the trade and FDI, which can work as information signals, have prominent effects in reducing international conflict. Through constituting VAR model to do variance decomposition, it is found that these two signals, trade and FDI, could mitigate international conflict complementarily.
Keywords :
investment; risk analysis; VAR model; foreign direct investment signals; information signals; international conflicts; international trade; variance decomposition; Costs; Data analysis; Equations; Industrial engineering; Information management; Innovation management; International relations; International trade; Investments; Reactive power; foreign direct investment; information signal; international conflict; trade;
Conference_Titel :
Information Management, Innovation Management and Industrial Engineering, 2009 International Conference on
Conference_Location :
Xi´an
Print_ISBN :
978-0-7695-3876-1
DOI :
10.1109/ICIII.2009.319