Citation

Discussion Paper Details

Please find the details for DP2695 in an easy to copy and paste format below:

Full Details

Title: Repeated Expropriation Contests and Foreign Direct Investment

Author(s): Kai A. Konrad

Publication Date: February 2001

Keyword(s): Confiscatory Taxation, Conflict, Expropriation, Foreign Direct Investment, Fractionalization and Nationalization

Programme Area(s): Public Economics and Transition Economics

Abstract: This Paper considers the incentives for foreign direct investment in transformation countries if actual expropriation is the possible result of a conflict between multinational firms and local or national governments. The Paper compares threats of complete expropriation and of repeated period-revenue confiscation. The Paper also shows that the timing of efforts in the contests is essential for the size of underinvestment. Short term commitment as regards timing can lead to first-best investment levels.

For full details and related downloads, please visit: https://cepr.org/active/publications/discussion_papers/dp.php?dpno=2695

Bibliographic Reference

Konrad, K. 2001. 'Repeated Expropriation Contests and Foreign Direct Investment'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=2695