Working Papers

U.S. Army photo by Sgt. Daniel Stoutamire, 2nd ABCT PAO

U.S. Army photo by Sgt. Daniel Stoutamire, 2nd ABCT PAO

  • "U.S. Military Aid, Foreign Direct Investment, and Political Risk Insurance: Overcoming Obstacles to U.S. Foreign Policy Goals" (with Shannon Lindsey Blanton)

Many countries view FDI inflows as central to their development strategies, while multinational enterprises (MNEs) seek access to new markets, resources, and production efficiencies. Major powers also view FDI as a means for improving conditions within developing states in which they have a strategic interest. Yet MNE interests may not coincide with those of the state, as many developing countries have risky political and economic environments that could ostensibly deter firms from entering these markets. In this study, we examine policy tools through which the US navigates this dilemma. Specifically, we consider how foreign aid and political risk insurance affect the locational decisions of US MNEs. Using a cross-sectional time-series design, we assesses the relationship between US military aid and US FDI to developing countries for the years 1982-2012. Our results show that US MNEs are actually less likely to invest in states that receive foreign aid from the United States. However, using newly coded data on investment sponsored by the Overseas Private Investment Corporation (OPIC), our findings suggest that the United States may alter this dynamic through political risk insurance.

  • "Determinants of U.S. Troop Deployment" (with Michael Allen and Michael Flynn)

States have long deployed their military forces across the globe as a means of power projection. In particular, in the post-World War II era, the United States has maintained an unrivaled military presence throughout the world. In spite of the importance of such deployments, researchers have only recently begun to explore them in a systematic way. However, extant research has focused largely on the effects of these deployments---not on their causes. This paper seeks to fill this gap by evaluating overseas military deployments by the United States in the post-war period. We explore how a variety of factors, including security, conflict, economic interests, and political institutions, shape where the United States deploys its military forces.