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The Political Economy of Oil Production in Latin America

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  • Osmel Manzano
  • Francisco Monaldi

Abstract

"This paper studies the cycles of investment and expropriation in the contextof the Latin American oil sector. In particular, it provides an explanationfor the state´s difficulties in capturing the oil rents and rationalizes the tendencyof governments to periodically renege on their prior agreements pursuingthe quasi-rents. The paper does not try to provide a general proposal forthe right fiscal and contractual structure, however, as the right structure mustbe tailored to each country."

Suggested Citation

  • Osmel Manzano & Francisco Monaldi, 2008. "The Political Economy of Oil Production in Latin America," Economía Journal, The Latin American and Caribbean Economic Association - LACEA, vol. 0(Fall 2008), pages 59-103, August.
    • Handle: RePEc:col:000425:008595
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    References listed on IDEAS

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    Citations

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    Cited by:

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    2. Chang, Roberto & Hevia, Constantino & Loayza, Norman, 2018. "Privatization And Nationalization Cycles," Macroeconomic Dynamics, Cambridge University Press, vol. 22(2), pages 331-361, March.
    3. Steiner, Roberto, 2014. "Taxation and Economic Growth in Colombia," IDB Publications (Working Papers) 6379, Inter-American Development Bank.
    4. Gordon H. Hanson, 2010. "Why Isn't Mexico Rich?," Journal of Economic Literature, American Economic Association, vol. 48(4), pages 987-1004, December.
    5. Jaakkola, Niko & Spiro, Daniel & van Benthem, Arthur A., 2019. "Finders, keepers?," Journal of Public Economics, Elsevier, vol. 169(C), pages 17-33.
    6. Maurizio Bussolo & Patrizia Luongo, 2020. "The distributive impact of terms of trade shocks: The case of the oil price changes in Russia," Economics of Transition and Institutional Change, John Wiley & Sons, vol. 28(3), pages 487-513, July.
    7. Stan du Plessis, 2011. "Nationalising South African mines: Back to a prosperous future, or down a rabbit hole?," Working Papers 17/2011, Stellenbosch University, Department of Economics.
    8. Smith, James L., 2013. "Issues in extractive resource taxation: A review of research methods and models," Resources Policy, Elsevier, vol. 38(3), pages 320-331.
    9. Müllner, Jakob & Puck, Jonas, 2018. "Towards a holistic framework of MNE–state bargaining: A formal model and case-based analysis," Journal of World Business, Elsevier, vol. 53(1), pages 15-26.
    10. Collins, Gabe & Jones, Mark P. & Krane, Jim & Medlock, Ken & Monaldi, Francisco, 2021. "Shale Renders the ‘Obsolescing Bargain’ Obsolete: Political risk and foreign investment in Argentina's Vaca Muerta," Resources Policy, Elsevier, vol. 74(C).
    11. Yeny Esperanza Rodríguez Ramos & John William Rosso Murillo, 2021. "The Profitability of Electricity, Oil, and Gas Utilities in America: An Analysis Focused on Colombia," Revista Facultad de Ciencias Económicas, Universidad Militar Nueva Granada, vol. 29(1), pages 27-48, March.
    12. Beatriz Calzada Olvera, 2014. "The Millennium Development Goals after 2015: A Proposal for 2015-2030," Competence Centre on Money, Trade, Finance and Development 1401, Hochschule fuer Technik und Wirtschaft, Berlin.
    13. Osmel Manzano & Jose Luis Saboin, 2021. "Reverse Causality between Oil Policy and Fiscal Policy? The Venezuelan Experience," Energies, MDPI, vol. 14(9), pages 1-20, April.
    14. Henry Aray & David Vera, 2023. "A Tale of Oil Production Collapse," ThE Papers 23/10, Department of Economic Theory and Economic History of the University of Granada..
    15. Monaldi, Francisco & Hernández, Igor & La Rosa Reyes, José, 2021. "The collapse of the Venezuelan oil industry: The role of above-ground risks limiting foreign investment," Resources Policy, Elsevier, vol. 72(C).
    16. Juan Carlos Echeverry & Jaime Navas & Verónica Navas & María Paula Gómez, 2009. "Oil in Colombia: History, Regulation and Macroeconomic Impact," Documentos CEDE 5428, Universidad de los Andes, Facultad de Economía, CEDE.

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    More about this item

    Keywords

    Oil industry; expropiation; invesment; taxation; Latin America;
    All these keywords.

    JEL classification:

    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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