Regime change in Third World extractive industries: a critique

Ronald T. Libby and Jim Cobbe

International Organization, 1981, vol. 35, issue 4, 725-744

Abstract: The dominant scholarly approach to the analysis of nationalization of foreign extractive industries in Third World countries employs game theory or bargaining models. A commonly used framework in bargaining theory is the so-called “bilateral monopoly model,” which posits the existence of two “non-colluding” parties—that is, the foreign investor and a government—each of whom has singular, noncontradictory objectives. The relationship is described in terms of a “balance of power” between the host country and the foreign investor based on the problem of joint-maximization. Each party has what the other needs to maximize their mutual benefits. The foreign investor has capital, organizational resources, expertise, international access to export markets, and marketing ability while the host government has control of natural resources such as ore and crude oil as well as the labor force, and control over taxation, the trade and foreign exchange regime, and other law and regulation.

Date: 1981
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.cambridge.org/core/product/identifier/ ... type/journal_article link to article abstract page (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cup:intorg:v:35:y:1981:i:04:p:725-744_03

Access Statistics for this article

More articles in International Organization from Cambridge University Press Cambridge University Press, UPH, Shaftesbury Road, Cambridge CB2 8BS UK.
Bibliographic data for series maintained by Kirk Stebbing ().