Price or politics? An investigation of the causes of expropriation
Abstract
Expropriations of foreign direct investment in developing countries are typically blamed on political and economic crises in those countries. Developing a new database of expropriations in the minerals sectors of developing country exporters, I show that expropriations were correlated with mineral price booms and that democratic governments were more likely to expropriate. No link is found between expropriations and political or economic crises, except at independence. A better explanation of expropriation would be opportunistic behaviour by host governments when profits of investments are high. In two developed countries, Australia and Canada, expropri-ations are also found to occur during price booms. Copyright Australian Agricultural and Resource Economics Society Inc. and Blackwell Publishing Ltd 2006.Download Info
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Bibliographic Info
Article provided by Australian Agricultural and Resource Economics Society in its journal Australian Journal of Agricultural and Resource Economics.
Volume (Year): 50 (2006)
Issue (Month): 1 (03)
Pages: 85-101
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
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