IDEAS home Printed from https://ideas.repec.org/a/sae/jocore/v66y2022i4-5p651-676.html
   My bibliography  Save this article

Causes of Foreign-Imposed Regime Change: The Signal of Economic Expropriation

Author

Listed:
  • Danielle Villa
  • Daniel Arnon
  • Dan Reiter

Abstract

Why do major powers attempt foreign-imposed regime change (FIRC)? This article builds on existing security theory, proposing that a major power looks for signals that a government might exit that major power’s international hierarchy and/or enter an adversary’s hierarchy. Major powers are more likely to attempt FIRC against states that signal shifting preferences. The article tests the theory on American FIRC attempts from 1947 to 1989, covert and overt, failed and successful, proposing that when a hierarchy member or neutral state engaged in economic expropriation, this signaled possible exit from the US hierarchy and/or entry into the Soviet hierarchy, making a US FIRC attempt against that state more likely. It also presents an alternative theory, that economic special interests drove US FIRC attempts. Using new data on expropriations, the article supports the security theory, as expropriations by US hierarchy members made FIRC attempts more likely, but does not support the special interests theory.

Suggested Citation

  • Danielle Villa & Daniel Arnon & Dan Reiter, 2022. "Causes of Foreign-Imposed Regime Change: The Signal of Economic Expropriation," Journal of Conflict Resolution, Peace Science Society (International), vol. 66(4-5), pages 651-676, May.
  • Handle: RePEc:sae:jocore:v:66:y:2022:i:4-5:p:651-676
    DOI: 10.1177/00220027211070604
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/00220027211070604
    Download Restriction: no

    File URL: https://libkey.io/10.1177/00220027211070604?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Sergei Guriev & Anton Kolotilin & Konstantin Sonin, 2011. "Determinants of Nationalization in the Oil Sector: A Theory and Evidence from Panel Data," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 27(2), pages 301-323.
    2. Brett Leeds & Jeffrey Ritter & Sara Mitchell & Andrew Long, 2002. "Alliance Treaty Obligations and Provisions, 1815-1944," International Interactions, Taylor & Francis Journals, vol. 28(3), pages 237-260, July.
    3. Zachary, Paul & Deloughery, Kathleen & Downes, Alexander B., 2017. "No Business Like FIRC Business: Foreign-Imposed Regime Change and Bilateral Trade," British Journal of Political Science, Cambridge University Press, vol. 47(4), pages 749-782, October.
    4. Peic, Goran & Reiter, Dan, 2011. "Foreign-Imposed Regime Change, State Power and Civil War Onset, 1920–2004," British Journal of Political Science, Cambridge University Press, vol. 41(3), pages 453-475, July.
    5. Daniel Berger & William Easterly & Nathan Nunn & Shanker Satyanath, 2013. "Commercial Imperialism? Political Influence and Trade during the Cold War," American Economic Review, American Economic Association, vol. 103(2), pages 863-896, April.
    6. Gibbs, David N., 1991. "The Political Economy of Third World Intervention," University of Chicago Press Economics Books, University of Chicago Press, number 9780226290713, Febrero.
    7. Michael S Minor, 1994. "The Demise of Expropriation as an Instrument of LDC Policy 1980-1992," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 25(1), pages 177-188, March.
    8. Lo, Nigel & Hashimoto, Barry & Reiter, Dan, 2008. "Ensuring Peace: Foreign-Imposed Regime Change and Postwar Peace Duration, 1914–2001," International Organization, Cambridge University Press, vol. 62(4), pages 717-736, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Chang, Roberto & Hevia, Constantino & Loayza, Norman, 2018. "Privatization And Nationalization Cycles," Macroeconomic Dynamics, Cambridge University Press, vol. 22(2), pages 331-361, March.
    2. Christopher Hajzler, 2012. "Expropriation of foreign direct investments: sectoral patterns from 1993 to 2006," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 148(1), pages 119-149, April.
    3. Toke S. Aidt & Facundo Albornoz & Esther Hauk, 2019. "Foreign in influence and domestic policy: A survey," Cambridge Working Papers in Economics 1928, Faculty of Economics, University of Cambridge.
    4. Christina L. Davis & Andreas Fuchs & Kristina Johnson, 2019. "State Control and the Effects of Foreign Relations on Bilateral Trade," Journal of Conflict Resolution, Peace Science Society (International), vol. 63(2), pages 405-438, February.
    5. Restrepo-Ochoa, Diana Constanza & Peña, Juan Ignacio, 2020. "The impact of forced divestments on parent company stock prices: Buy on the rumor, sell on the news?," Research in International Business and Finance, Elsevier, vol. 53(C).
    6. Nathan M. Jensen & Noel P. Johnston & Chia-yi Lee & Hadi Sahin, 2020. "Crisis and contract breach: The domestic and international determinants of expropriation," The Review of International Organizations, Springer, vol. 15(4), pages 869-898, October.
    7. Toke S. Aidt & Facundo Albornoz & Esther Hauk, 2021. "Foreign Influence and Domestic Policy," Journal of Economic Literature, American Economic Association, vol. 59(2), pages 426-487, June.
    8. Vincent Arel-Bundock & Clint Peinhardt & Amy Pond, 2020. "Political Risk Insurance: A New Firm-level Data Set," Journal of Conflict Resolution, Peace Science Society (International), vol. 64(5), pages 987-1006, May.
    9. Çakir Melek, Nida, 2020. "Productivity, Nationalization, And The Role Of “News”: Lessons From The 1970s," Macroeconomic Dynamics, Cambridge University Press, vol. 24(5), pages 1264-1298, July.
    10. Hartwell, Christopher A. & Devinney, Timothy, 2021. "Populism, political risk, and pandemics: The challenges of political leadership for business in a post-COVID world," Journal of World Business, Elsevier, vol. 56(4).
    11. Hajzler, Christopher, 2014. "Resource-based FDI and expropriation in developing economies," Journal of International Economics, Elsevier, vol. 92(1), pages 124-146.
    12. Maravillo, Héctor & Camacho-Vallejo, José-Fernando & Puerto, Justo & Labbé, Martine, 2020. "A market regulation bilevel problem: A case study of the Mexican petrochemical industry," Omega, Elsevier, vol. 97(C).
    13. Nnanna P. Azu & Ebenezer Fiifi Emire Atta Mills & Benedict N. Akanegbu, 2023. "Gravity assessment of the impact of alliances on bilateral trade: A comparative analysis of ECOMOG and NATO," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 28(2), pages 1929-1938, April.
    14. Sergey Mityakov & Heiwai Tang & Kevin K. Tsui, 2013. "International Politics and Import Diversification," Journal of Law and Economics, University of Chicago Press, vol. 56(4), pages 1091-1121.
    15. Cannizzaro, Anthony P. & Weiner, Robert J., 2015. "Multinational investment and voluntary disclosure: Project-level evidence from the petroleum industry," Accounting, Organizations and Society, Elsevier, vol. 42(C), pages 32-47.
    16. Abeliansky, Ana & Krenz, Astrid, 2015. "Democracy and international trade: Differential effects from a panel quantile regression framework," University of Göttingen Working Papers in Economics 243, University of Goettingen, Department of Economics.
    17. Chenzi Xu, 2022. "Reshaping Global Trade: The Immediate and Long-Run Effects of Bank Failures [“Shift-Share Designs: Theory and Inference,”]," The Quarterly Journal of Economics, Oxford University Press, vol. 137(4), pages 2107-2161.
    18. Paul Poast, 2013. "Issue linkage and international cooperation: An empirical investigation," Conflict Management and Peace Science, Peace Science Society (International), vol. 30(3), pages 286-303, July.
    19. Li, Chen, 2016. "Signing a Bilateral Investment Treaty - A tradeoff between investment protection and regulation," VfS Annual Conference 2016 (Augsburg): Demographic Change 145505, Verein für Socialpolitik / German Economic Association.
    20. repec:zbw:rwirep:0298 is not listed on IDEAS
    21. Paltseva, Elena & Toews , Gerhard & Troya-Martinez, Marta, 2022. "I’ll pay you later: Sustaining Relationships under the Threat of Expropriation," SITE Working Paper Series 59, Stockholm School of Economics, Stockholm Institute of Transition Economics.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:jocore:v:66:y:2022:i:4-5:p:651-676. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: http://pss.la.psu.edu/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.