Intricate Ambivalence: Foreign Direct Investment and the Onset of Civil Disputes in Developing Economies (2008-2017)

This paper analyzes the effect of Foreign Direct Investment in Land acquisition and cultural difference between investors and host government on the likelihood of the outbreak of Civil Disputes in Developing Countries. The study highlights two significant mechanisms through which FDI can potentially ignite civil unrest in developing nations. Firstly, foreign land acquisitions can exacerbate land disputes and protests due to intensified competition and conflicting perceptions of land ownership. Secondly, cultural disparities between MNCs and local communities can breed misunderstandings and mistrust, prompting protests against perceived cultural infringements and calls for reduced foreign business operations. Through the analysis of a sample of 15 developing countries from Latin America and Africa from 2008 to 2017, the statistical results suggested that FDI in land has a controversial effect on the occurrence of domestic farmer-related disputes in developing economies, and the occurrence of localities-MNC disputes tends to decrease in countries where their beliefs in work ethics align more closely with the investing economy.