State capitalism and FDI expropriation in Latin America
This article focuses on state capitalism in Latin America and examines what causes the expropriation of foreign direct investment (FDI) in this region. We argue that leaders’ concerns over their political survival affect FDI expropriation in Latin American countries. Specifically, when leaders sense...
| Main Authors: | , |
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| Other Authors: | |
| Format: | Journal Article |
| Language: | English |
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2019
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| Online Access: | https://hdl.handle.net/10356/84625 http://hdl.handle.net/10220/49149 |
| _version_ | 1826119126723067904 |
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| author | Tsai, Tsung-han Lee, Chia-yi |
| author2 | S. Rajaratnam School of International Studies |
| author_facet | S. Rajaratnam School of International Studies Tsai, Tsung-han Lee, Chia-yi |
| author_sort | Tsai, Tsung-han |
| collection | NTU |
| description | This article focuses on state capitalism in Latin America and examines what causes the expropriation of foreign direct investment (FDI) in this region. We argue that leaders’ concerns over their political survival affect FDI expropriation in Latin American countries. Specifically, when leaders sense a higher level of political constraints and political insecurity, they are more likely to take unilateral action, i.e., by expropriating FDI. This argument illustrates one important feature of state capitalism: governments utilize markets to serve political goals. We conduct a data analysis of expropriation in 18 Latin American countries from 1980 to 2008, and the results show that leaders are more likely to expropriate when they confront stronger executive constraints. The results also confirm the findings in the literature that democratic regimes expropriate less and that oil-producing countries expropriate more. The focus on Venezuela and Brazil also supports our main argument. |
| first_indexed | 2024-10-01T04:54:59Z |
| format | Journal Article |
| id | ntu-10356/84625 |
| institution | Nanyang Technological University |
| language | English |
| last_indexed | 2024-10-01T04:54:59Z |
| publishDate | 2019 |
| record_format | dspace |
| spelling | ntu-10356/846252019-12-06T15:48:35Z State capitalism and FDI expropriation in Latin America Tsai, Tsung-han Lee, Chia-yi S. Rajaratnam School of International Studies Latin America Social sciences::Political science State Capitalism This article focuses on state capitalism in Latin America and examines what causes the expropriation of foreign direct investment (FDI) in this region. We argue that leaders’ concerns over their political survival affect FDI expropriation in Latin American countries. Specifically, when leaders sense a higher level of political constraints and political insecurity, they are more likely to take unilateral action, i.e., by expropriating FDI. This argument illustrates one important feature of state capitalism: governments utilize markets to serve political goals. We conduct a data analysis of expropriation in 18 Latin American countries from 1980 to 2008, and the results show that leaders are more likely to expropriate when they confront stronger executive constraints. The results also confirm the findings in the literature that democratic regimes expropriate less and that oil-producing countries expropriate more. The focus on Venezuela and Brazil also supports our main argument. Published version 2019-07-05T03:50:51Z 2019-12-06T15:48:35Z 2019-07-05T03:50:51Z 2019-12-06T15:48:35Z 2015 Journal Article Lee, C., & Tsai, T. (2013). State capitalism and FDI expropriation in Latin America. Taiwanese Political Science Review, 19(2), 133-172. https://hdl.handle.net/10356/84625 http://hdl.handle.net/10220/49149 en Taiwanese Political Science Review © 2015 Taiwanese Political Science Review. All rights reserved. |
| spellingShingle | Latin America Social sciences::Political science State Capitalism Tsai, Tsung-han Lee, Chia-yi State capitalism and FDI expropriation in Latin America |
| title | State capitalism and FDI expropriation in Latin America |
| title_full | State capitalism and FDI expropriation in Latin America |
| title_fullStr | State capitalism and FDI expropriation in Latin America |
| title_full_unstemmed | State capitalism and FDI expropriation in Latin America |
| title_short | State capitalism and FDI expropriation in Latin America |
| title_sort | state capitalism and fdi expropriation in latin america |
| topic | Latin America Social sciences::Political science State Capitalism |
| url | https://hdl.handle.net/10356/84625 http://hdl.handle.net/10220/49149 |
| work_keys_str_mv | AT tsaitsunghan statecapitalismandfdiexpropriationinlatinamerica AT leechiayi statecapitalismandfdiexpropriationinlatinamerica |