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Covert Confiscation: How Governments Differ in Their Strategies of Expropriation.
- Source :
- Comparative Political Studies; Jan2023, Vol. 56 Issue 1, p3-35, 33p
- Publication Year :
- 2023
-
Abstract
- A substantial literature concludes that democratic-type institutions curb governments' propensity to expropriate foreign direct investment. However, little attention has been paid to the strategies of expropriation regimes employ. We theorize that more politically constrained regimes will utilize expropriation methods that help them overcome institutional impediments. Using data on expropriations in developing countries between 1960 and 2014, we show that rather than rely on the most direct and overt forms of expropriation, constrained regimes tend to use more indirect and covert methods, such as forced sale or contract renegotiation, tools which can be harder to identify, easier to justify, and frequently face lower legislative approval hurdles. Indeed, while more politically constrained regimes are less likely to overtly expropriate foreign investment than less constrained regimes, they are nearly as likely to do so covertly, introducing new questions about the extent to which institutional constraints really translate into improved protections for foreign investors. [ABSTRACT FROM AUTHOR]
- Subjects :
- EMINENT domain
FOREIGN investments
CONFISCATIONS
DEVELOPING countries
Subjects
Details
- Language :
- English
- ISSN :
- 00104140
- Volume :
- 56
- Issue :
- 1
- Database :
- Complementary Index
- Journal :
- Comparative Political Studies
- Publication Type :
- Academic Journal
- Accession number :
- 160754960
- Full Text :
- https://doi.org/10.1177/00104140221089650