Sources of change in Third World regimes for foreign direct investment, 1968-1976. [Theory for expropriation activities]

Journal Article · · Int. Organ.; (United States)

OSTI ID:5378234

Jodice, D A

The expropriation by the developing countries of foreign direct investment in natural-resource extraction has become increasingly significant during the past decade for multinational corporations as well as home and host governments. Quantitative data on recent expropriations suggest that the assertion of national control over foreign investment will continue to be an important aspect of the environment for international business. Under what conditions do host governments alter the national regime for foreign investment and expropriate foreign-owned subsidiaries. Newly available cross-national data allow analysis of the variance in extent of expropriation across fifty less-developed countries during the period 1968-76. Expropriation propensity varies positively with the level of modernity of the host country, the capacity of the central state institutions, the instability of export earnings, and negatively with reliance on bilateral economic aid. An explicitly political hypothesis - that governing elites use expropriation as an instrumental device for enhancing their power - is developed and substantiated by the data. 48 references.

• OSTI ID: 5378234
• Journal Information: Int. Organ.; (United States), Journal Name: Int. Organ.; (United States) Vol. 34:2; ISSN INORB
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
290200* -- Energy Planning & Policy-- Economics & Sociology
290400 -- Energy Planning & Policy-- Energy Resources
DEVELOPING COUNTRIES
ECONOMIC POLICY
GOVERNMENT POLICIES
INVESTMENT
MULTINATIONAL ENTERPRISES
NATIONALIZATION
RESOURCE DEVELOPMENT