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This paper integrates the credit rating agency and domestic conflict literatures, investigating the effects of non-violent and violent domestic political unrest on sovereign bond ratings. Using up to 60 developing countries and 94 unrest cases from 1996-2018, we find that while countries under domestic unrest often receive bond downgrades, non-violent unrest appears not to be responsible. Further, we use mediation analysis and show that respect for the rule of law and economic stability seem to mediate the relationship between violent and non-violent unrest and bond ratings. Given developing countries' need to issue debt, and the critical role credit rating agencies play in rating sovereign bonds, our work suggests that countries should seek to avoid violent domestic political unrest if for no other reason than to acquire lower-cost capital. [ABSTRACT FROM AUTHOR]

This paper studies the effects of foreign direct investment (FDI) on domestic terrorism. Using a cross-national, time-series analysis of 114 countries from 1991–2017, and employing structural equation modeling to test a number of mediating factors, we find that the impact of FDI on domestic terrorism depends on the host state's level of economic development. For host countries at higher-income levels, FDI boosts economic development and global integration promoting prosperity, increasing counterterrorism resources, and reducing the economic grievances that foster terrorism. Conversely, for lower-income host countries, increased FDI fuels higher domestic terrorism, as it intensifies clashes between traditional and modern elements within society, raises economic discrimination, heightens perceptions of economic insecurity, and subsequently leads to grievances directed against the state. Our results indicate a curvilinear relationship between FDI inflows and domestic terrorism, suggesting that FDI produces a double-edged sword between promoting economic development and increasing domestic terrorism in host states. [ABSTRACT FROM AUTHOR]

Since the 1990s, credit rating agencies have played a prominent financial role in developing countries, rating their sovereign bonds and determining capital costs. Over much the same years, domestic terrorism has expanded, increasing market disruptions in countries. Despite the heightened costs related to rebel attacks, few studies investigate the impact of domestic terrorism on bond ratings. Using a sample of seventy-one developing countries between 1996 and 2018, we find that domestic terrorist incidents result in sovereign bond downgrades for countries that receive ratings. Further, when we disaggregate terrorist events by target type, we observe that attacks directed at the government, military and police, business, non-governmental organizations, and private citizens/property have a larger effect than other terrorist incidents. We argue that specific domestic terrorist attacks increase economic instability, leading to capital flight, and a shifting of resources from productive economic sectors to counterterrorism. The resulting economic changes weaken a country's economy and increase debt nonpayment risk. [ABSTRACT FROM AUTHOR]

Most research on media in the post-broadcast age of politics focuses on how media affect the public, not on the interinstitutional relationships between the presidency and news media. This study tackles this important topic by studying news coverage of and presidential attention to the issue of income inequality. We use web scraping and text analysis software to build a dataset of weekly news coverage from 1999 through 2013, across traditional and nontraditional media, including newspapers, broadcast and cable television transcripts, and online news websites. The data show that presidential attention to income inequality influences the income inequality news agenda across all sources except network television and affects the tone of newspaper coverage. Presidential influence of tone is especially pronounced on income inequality issues that have an international focus. The implications of this paper are significant not only for understanding how media and the presidency interact in the post-broadcast age but also for the prospects for federal policies that may combat income inequality. [ABSTRACT FROM AUTHOR]