search query: @indexterm expropriation / total: 13
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| Author: | Thomas, J. Worrall, T. |
| Title: | Foreign direct investment and the risk of expropriation |
| Journal: | Review of Economic Studies
1994 : JAN, VOL. 61(1):206, p. 81-108 |
| Index terms: | FOREIGN INVESTMENT RISK EXPROPRIATION |
| Language: | eng |
| Abstract: | This paper extends previous work on the general underprovision of investment when contracts are incomplete or only partially enforceable (see e.g.Grout (1984) to a dynamic context. It is likewise shown that investment is initially underprovided but it increases over time and for certain parameter values it tends to the efficient level. The expected future discounted returns to the transnational company decline over time, extending Vernon's observation of the obsolescing bargain (Vernon (1971). |
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