state capitalism,Latin America,foreign direct investment,expropriation,rational choice theory,political survival,political institutions

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 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.

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