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.
Item Type: | Paper |
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Keywords: | Confiscatory Taxation; Conflict; Expropriation, Foreign Direct Investment; Fractionalization; Nationalization |
Faculties: | Economics > Chairs > MPI for Tax Law and Public Finance |
Subjects: | 300 Social sciences > 330 Economics |
JEL Classification: | F21, F23, G15, H87 |
Language: | English |
Item ID: | 24417 |
Date Deposited: | 30. Mar 2015, 13:13 |
Last Modified: | 03. Mar 2017, 10:54 |