Countries with conflict lose foreign investment, especially in high-tech sectors
What happened
New data shows that armed conflict makes foreign companies invest less in a country. This means fewer jobs and fewer new projects for those economies.
Why it matters
Everyone knew conflict was bad for investment. This paper puts a number on it, showing that countries with armed conflict lose significant foreign investment and jobs. It also reveals that high-tech sectors like semiconductors and biotech are hit hardest, making it tougher for developing economies to diversify.
The signal
Watch for changes in how development agencies advise countries on attracting foreign investment, especially in regions with ongoing or neighboring conflicts.