Determinants of Expropriation in the Oil Sector: A Theory and Evidence from Panel Data
Anton Kolotilin,
Sergei Guriev and
Konstantin Sonin
Post-Print from HAL
Abstract:
In this article, we study nationalizations in the oil industry around the world during 1960–2006. We show, both theoretically and empirically, that governments are more likely to nationalize when oil prices are high and when political institutions are weak. We consider a simple dynamic model of the interaction between a government and a foreign-owned oil company. Even though nationalization is inefficient, it does occur in equilibrium when oil prices are high. The model's predictions are consistent with the analysis of panel data on nationalizations in the oil industry around the world since 1960. Nationalization is more likely to happen when oil prices are high and the quality of institutions is low, even controlling for country fixed effects.
Date: 2011-08
References: Add references at CitEc
Citations: View citations in EconPapers (66)
Published in Journal of Law, Economics, and Organization, 2011, 27 (2), pp.301 - 323. ⟨10.1093/jleo/ewp011⟩
There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.
Related works:
Working Paper: Determinants of Expropriation in the Oil Sector: A Theory and Evidence from Panel Data (2008) 
Working Paper: Determinants of Expropriation in the Oil Sector: A Theory and Evidence from Panel Data (2007) 
Working Paper: Determinants of Expropriation in the Oil Sector: A Theory and Evidence from Panel Data (2007) 
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:hal:journl:hal-03415478
DOI: 10.1093/jleo/ewp011
Access Statistics for this paper
More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().