Costs and consequences of the expropriation of FDI by host governments

Roderick Duncan

No 139524, 2006 Conference (50th), February 8-10, 2006, Sydney, Australia from Australian Agricultural and Resource Economics Society

Abstract: There are no laws preventing a host government from seizing the capital of a foreign direct investment in its borders and then denying any compensation for the foreign investor. Why do we not see many more expropriations of investor capital by host governments? Compiling a database of expropriations within the minerals sectors of developing countries, I show that there is a cost for expropriation by a host government in the form of lower growth in the sectors of countries that expropriated in the past. It is possible to lose a bad reputation by a host government's actions after expropriation.

Keywords: Environmental Economics and Policy; International Relations/Trade; Political Economy (search for similar items in EconPapers)
Pages: 16
Date: 2006
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/139524/files/2006_duncan.pdf (application/pdf)

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:ags:aare06:139524

DOI: 10.22004/ag.econ.139524

Access Statistics for this paper

More papers in 2006 Conference (50th), February 8-10, 2006, Sydney, Australia from Australian Agricultural and Resource Economics Society Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().