
Economic Approach to Conflict Issue: Investment in Post- Conflict Situation for International Business
Author(s) -
Ümit Hacıoğlu,
Hasan Di̇nçer,
İsmail Erkan Çelik
Publication year - 2012
Publication title -
international journal of business administration
Language(s) - English
Resource type - Journals
eISSN - 1923-4015
pISSN - 1923-4007
DOI - 10.5430/ijba.v3n5p1
Subject(s) - prosperity , economics , order (exchange) , financial crisis , investment (military) , economic recovery , development economics , business , economic growth , economic system , political science , finance , macroeconomics , politics , law
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