Foreign Direct Investment and Political Uncertainty

Recent developments in the general equilibrium theory of multinationals emphasize the importance of multilateral considerations. Yet, existing explanations and corresponding estimations of FDI patterns have largely limited political and institutional investment impediments to a bilateral framework. Through the application of spatial econometric techniques, I demonstrate that the presence of both domestic and regional political uncertainty generate real options effects that lead to the delay or redirection of foreign direct investment. The magnitude and direction of these effects is conditional upon the host country regime type and the predominant multinational integration strategies in the region. Comparing these results with FDI of U.S. origin, I find evidence for divergent investment behavior by U.S. multinationals during regime changes in partner countries. Additionally, I find no evidence that multinationals from developing countries are more likely to complete cross-border deals in environments characterized by greater political risk or political uncertainty.

Using Quantitative Methods to Explore Political Leverage, Trade Policy, and Food Security: A Case Study of the Middle East

This dissertation explores why some states consistently secure food imports at prices higher than the world market price, thereby exacerbating food insecurity domestically. I challenge the idea that free market economics alone can explain these trade behaviors, and instead argue that states take into account political considerations when engaging in food trade that results in inefficient trade. In particular, states that are dependent on imports of staple food products, like cereals, are wary of the potential strategic value of these goods to exporters. I argue that this consideration, combined with the importing state’s ability to mitigate that risk through its own forms of political or economic leverage, will shape the behavior of the importing state and contribute to its potential for food security. In addition to cross-national analyses, I use case studies of the Gulf Cooperation Council states and Jordan to demonstrate how the political tools available to these importers affect their food security. The results of my analyses suggest that when import dependent states have access to forms of political leverage, they are more likely to trade efficiently, thereby increasing their potential for food security.

Clouds of Suspicion: Airspace Arrangements, Escalation, and Discord in U.S./NATO-Russian Relations

How have cooperative airspace arrangements contributed to cooperation and discord in the Euro-Atlantic region? This study analyzes the role of three sets of airspace arrangements developed by Euro-Atlantic states since the end of the Cold War—(1) cooperative aerial surveillance of military activity, (2) exchange of air situational data, and (3) joint engagement of theater air and missile threats—in political-military relations among neighbors and within the region. These arrangements provide insights into the integration of Central and Eastern European states into Western security institutions, and the current discord that centers on the conflict in Ukraine and Russia’s place in regional security. The study highlights the role of airspace incidents as contributors to conflict escalation and identifies opportunities for transparency- and confidence-building measures to improve U.S./NATO-Russian relations. The study recommends strengthening the Open Skies Treaty in order to facilitate the resolution of conflicts and improve region-wide military transparency. It notes that political-military arrangements for engaging theater air and missile threats created by NATO and Russia over the last twenty years are currently postured in a way that divides the region and inhibits mutual security. In turn, the U.S.-led Regional Airspace Initiatives that facilitated the exchange of air situational data between NATO and then-NATO-aspirants such as Poland and the Baltic states, offer a useful precedent for improving air sovereignty and promoting information sharing to reduce the fear of war among participating states. Thus, projects like NATO’s Air Situational Data Exchange and the NATO-Russia Council Cooperative Airspace Initiative—if extended to the exchange of data about military aircraft—have the potential to buttress deterrence and contribute to conflict prevention. The study concludes that documenting the evolution of airspace arrangements since the end of the Cold War contributes to understanding of the conflicting narratives put forward by Russia, the West, and the states “in-between” with respect to reasons for the current state of regional security. The long-term project of developing a zone of stable peace in the Euro-Atlantic must begin with the difficult task of building inclusive security institutions to accommodate the concerns of all regional actors.

HOLDING HANDS WHILE PARTING WAYS: EXAMINING ALLIANCE TREATY RENEGOTIATION

This study investigates the renegotiation of security alliances, specifically the structural conditions surrounding their revision. Although the field of international relations offers a rich discussion of the formation and violation of alliance treaties, few scholars have addressed the reasons why alliance members amend security obligations. After the formation of an alliance, a member may become dissatisfied owing to changes in the external and domestic security environments. A failure to address this discontent increases the risk of alliance breakdown. Members manage their alliance relationship through a negotiation process or intra-alliance bargaining in the search for a new arrangement that can endure. Factors that help to show commitment to the alliance and communicate a set of feasible solutions are crucial if members are to find a mutually acceptable arrangement. By taking these factors into account, allies are more likely to revise an existing treaty. Examining a set of bilateral alliances dating from 1945 to 2001, this research demonstrates that public requests for renegotiation compel allies to change the status quo. It is found that alliance-related fixed assets and the formation of external alliances increase the likelihood of treaty revision, though institutionalization of an alliance does not help to resolve interest divergence. In addition, this study examines the strategy of delay in intra-alliance bargaining. Allies may postpone a dispute by ignoring it while working to maintain the alliance. Tension among allies thus increases, but the alliance endures. I examine three alliances in order to illustrate this renegotiation process. Among these, the Anglo-Japanese alliance demonstrates two successful renegotiations that prolonged a wavering alliance relationship; the Sino-Soviet alliance is an example of failure owing to the lack of substantive cooperation; and the US-Taiwan alliance during the 1970s demonstrates successful use of a strategy of delay that appeases a dissatisfied member.

Turkish Security Policymaking on Nuclear Issues: Conceptualizing Advanced Cooperative Security Strategies

Turkey is a non-nuclear member of a nuclear alliance in a region where nuclear proliferation is of particular concern. As the only North Atlantic Treaty Organization (NATO) member that has a border with the Middle East, Turkish officials argue that Turkey cannot solely rely on NATO guarantees in addressing the regional security challenges. However, Turkey has not been able to formulate a security policy that reconciles its quest for independence, its NATO membership, the bilateral relationship with the United States, and regional engagement in the Middle East. This dissertation assesses the strategic implications of Turkey’s perceptions of the U.S./NATO nuclear and conventional deterrence on nuclear issues. It explores three case studies by the process tracing of Turkish policymakers’ nuclear-related decisions on U.S. tactical nuclear weapons deployed in Europe, national air and missile defense, and Iran’s nuclear program. The study finds that the principles of Turkish security policymaking do not incorporate a fundamentally different reasoning on nuclear issues than conventional deterrence. Nuclear weapons and their delivery systems do not have a defining role in Turkish security and defense strategy. The decisions are mainly guided by non-nuclear considerations such as Alliance politics, modernization of the domestic defense industry, and regional influence. The dissertation argues that Turkey could formulate more effective and less risky security policies on nuclear issues by emphasizing the cooperative security approaches within the NATO Alliance over confrontational measures. The findings of this dissertation reveal that a major transformation of Turkish security policymaking is required to end the crisis of confidence with NATO, redefinition of the strategic partnership with the US, and a more cautious approach toward the Middle East. The dissertation argues that Turkey should promote proactive measures to reduce, contain, and counter risks before they develop into real threats, as well as contribute to developing consensual confidence-building measures to reduce uncertainty.